Day Trading Guide: 2 Stock Picks By Sumeet Bagadia of Choice Broking For 12th October

Thursday's opening of the Indian market is anticipated to be favourable, following the upward trend of the Asian market. Early trading saw Gift Nifty trading 0.13% or 25.5 points higher at 19,855.5. The benchmark opened at 19,830.0 and traded between an intraday high of 19,864.0 and a low of 19,838.5 while writing the copy.

Nifty Outlook Today

"The daily momentum indicator has triggered a positive crossover and hence in case of a dip it should be used as a buying opportunity. Today's intraday consolidation is a bullish sign as it sustained the gains, and we expect the positive momentum to continue over the next few trading sessions till 19883 which is the 61.82% Fibonacci retracement level of the entire fall from 20222 till 19333. On the downside the gap area formed today in the range 19718 - 19757 is likely to act as a short-term support," said Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas.

Bank Nifty Outlook

"Bank Nifty opened gap up and consolidated thereafter. The zone of 44655 - 44840 where the key daily moving averages are placed acted as a resistance zone and restricted further upside. Overall, we expect the positive momentum to resume on the upside till 45050 - 45350 which coincides with the 50% and 61.82% fibonacci retracement level of the fall," said Jatin Gedia.

Stocks To Buy Today

Sumeet Bagadia, Executive Director at Choice Broking has recommended 2 stocks to buy or sell on 12th October 2023.

Wipro

Buy WIPRO in cash @ Rs 421.15, stop-loss: Rs 408, target: Rs 445.

The stock is displaying signs of resilience and potential upward momentum. Its ability to rebound from the robust support range of 405-408 levels which is also close to 200 Day EMA levels indicates a considerable amount of buying interest within this price band. Investors appear willing to purchase the stock at these levels, which can provide a foundation for potential price appreciation.

Furthermore, the stock's current position above crucial moving averages is another positive signal. When a stock trades above its moving averages, it often indicates an upward trajectory and suggests that it is in an uptrend. This can boost investor confidence, as it implies that the stock has strong support and is trading in a technically favourable position.

The Relative Strength Index (RSI) reading of around 55 further reinforces the positive outlook. An RSI at this level suggests moderate strength but also room for further upward movement. This can be interpreted as a favourable condition for potential price gains.

In light of these analyses, a medium-term buying opportunity may arise. Entering the trade at the current market price (CMP) of 421.15 with a stop-loss (SL) set at 408 could provide a safety net against adverse price fluctuations. The anticipated target price of 445 aligns with potential bullish momentum.

Great Eastern Shipping Company

Buy GESHIP in cash @ Rs 856, stop-loss: Rs 834, target: Rs 882

GESHIP is displaying strong bullish indicators in the daily time frame, poised for a potential breakout. The stock has found reliable support along a discernible trendline, reinforcing the likelihood of an upward move. Notably, it encountered a minor resistance level at 867, which, once breached, could pave the way for a substantial rally.
Furthermore, GESHIP has demonstrated resilience by consistently closing above key short, mid, and long-term moving averages, including the 20, 50, 100, and 200 EMA.This reinforces the positive sentiment surrounding the stock. The RSI currently stands at 61 and is exhibiting an upward trend, indicating growing buying momentum.

Additionally, the ADX is notably robust at 25, underscoring a strong underlying trend. With these factors in mind, a prudent entry point is identified at 856, with a suggested stop loss set at 834 to mitigate potential downside risk. The target price is set at 882, reflecting the anticipated upward movement based on the technical analysis provided.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.