Day Trading Guide: 2 Stock Picks By Sumeet Bagadia To Trade Today, 27th October

The Indian stock market closed in the red for the sixth day in a row owing to an array of factors including rising oil prices, ongoing FII selling, near-record high USDINR, and global concerns. The Nifty dropped 264.90 points, or 1.39 per cent to close at 18,857.30, while the Sensex plummeted 900.91 points, or 1.41 per cent, at 63,148.15 at the closing. Axis Bank, HCL Technologies, Adani Ports, and Power Grid were the top gainers on the Nifty, while the biggest losers were M&M, Bajaj Finance, Asian Paints, UPL, and Nestle India. All sectors ended in the red on the sectoral front, with Nifty Metal being the worst performer.

Nifty Outlook Today

Rupak De, Senior Technical analyst at LKP Securities said, "Once again, bears remain at the helm as the Nifty slipped below 19,000 for the first time in four months, indicating a rising bearish condition. The bearish crossover in the momentum indicator also supports the negative momentum. In the current scenario, supports are appearing very fragile and vulnerable. Despite the recent sharp decline, further correction from the current level seems highly possible. Support on the lower end is visible at 18,600-18,645, while resistance is positioned at 18,950-19,000."

Bank Nifty Outlook Today

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "The Bank Nifty index experienced continued heavy selling, resulting in a 1.29% decline. It is currently trading below its 200-day Exponential Moving Average (200EMA) placed at 43,264. This situation maintains a bearish undertone. The next immediate support level on the downside is at 42,000, where fresh put writing is evident. A breach below this level could lead to further declines, potentially targeting the 41,500-41,200 range."

Market Outlook Today

Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS said, "The market correction has been led by two primary factors: global geopolitical tensions and rising bond yields in the US markets. These challenges have a long-term impact on equities, but domestic factors in India remain encouraging. Our near-term advice to investors is not to panic in this market. Stocks that are overvalued and lack quality should be sold, while quality businesses can be accumulated at these levels. Focus on large caps and quality to navigate the current volatility in the equity markets."

Stocks To Buy Today

Sumeet Bagadia, Executive Director at Choice Broking has suggested the below stocks to buy or sell on Friday, 27th October 2023.

TVS Motor Company

Buy TVSMOTOR in cash @ Rs 1577, stop-loss: Rs 1545, target: Rs 1640

TVSMOTOR is presently trading at 1577 levels, bouncing from its initial support of 1545 levels. On the daily chart, the stock has formed a strong hammer candle indicating bullishness in the stock.

Moreover, TVSMOTOR'S price is currently positioned above its 20-50-200 Day Exponential Moving Averages (EMA), suggesting underlying strength in the stock. The RSI indicator is currently trading around 62 levels indicating strength.

Taking all these factors into consideration, it is our professional opinion that TVSMOTOR presents a favourable buying opportunity at the current price of 1577, with a target price of 1640. It is important to note that our views would be invalidated if the stock were to fall below the 1545 level.

Birlasoft

Buy BSOFT in cash @ Rs 528, STOP-LOSS: Rs 513, TARGET: Rs 552

BSoft Holdings (BSOFT) is currently trading at 528, showcasing a commendable uptrend with a consistently positive slope since April. Despite encountering occasional resistance, the stock's upward trajectory remains intact.

Presently, there is a minor hurdle at 535, and once surpassed, we anticipate a substantial up move. Furthermore, BSOFT exhibits a robust foundation as its price stands above the 20-50-200 Day Exponential Moving Averages (EMA), underscoring the underlying strength in the stock.

The Relative Strength Index (RSI) indicator, positioned at approximately 65, further attests to the stock's current vigor. Additionally, the Average Directional Index (ADX) stands at a noteworthy 31, underscoring the prevailing strength in BSOFT.

Given these indicators, BSOFT appears promising at its current level of 528, with a stop-loss set at 513 and a target price of 552. Investors are advised to closely monitor this stock for potential gains in the near term.

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.