Day Trading Guide: 2 Stock Picks For Today By Sumeet Bagadia of Choice Broking

Following weak global cues, Indian benchmark indices declined on October 3, with Nifty closing below 19,550. The Nifty was down 109.55 points or 0.56 per cent at 19,528.75 at closure, and the Sensex was down 316.30 points or 0.48 per cent at 65,512.10. L&T, Titan, and Bajaj Finance were the primary gainers among Nifty stocks, while ONGC, Eicher Motors, and Hindalco were the top losers. While Nifty Auto, Nifty IT, and Nifty Energy ended on a red note, the sectors Nifty Realty, Nifty Media, and Nifty PSU Bank ended higher.

Stock Market Outlook Today

"On the daily charts we can observe that the Nifty is unable to sustain at higher levels. The key hourly moving averages placed in the zone 19590- 19640 is acting as a stiff resistance and until the Nifty does not manage to close above this resistance zone we can expect the weakness to continue. On the downside it can slip towards 19440 - 19320 where support parameters in the form of 78.6% fibonacci retracement level and 20 week moving average are placed. We have been anticipating a pullback however the attempts have been fragile and thus we shall await for a decisive price confirmation. In terms of levels, 19500 - 19440 is the crucial support zone while 19590 - 19640 shall act as an immediate hurdle zone," said Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas.

"Bank Nifty also closed in the red down ~185 points. The pullbacks towards the key hourly moving averages are being sold into and hence until the Bank Nifty does not sustain above 44700 - 44800 zone we can expect the weakness to continue. On the downside the Bank Nifty can slip towards 44000 - 43800," said the analyst.

Stocks To Buy Today

Sumeet Bagadia, Executive Director at Choice Broking has picked up 2 stocks for day trading today with a buy/sell rating.
Birlasoft

Buy BSOFT in Cash @ Rs 496.85, stop-loss: Rs 473, target: Rs 547

BSOFT is currently trading at Rs 496.85, and a significant price breakout from the daily trendline has occurred, accompanied by strong trading volume. Furthermore, BSOFT is currently trading above critical Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, which reinforces its bullish momentum and suggests potential for further upward price movement.
The Relative Strength Index (RSI) is currently at 55.39 and trending upwards, indicating a growing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has recently experienced a positive crossover from the oversold region.

This combination of technical indicators suggests that BSOFT may have the potential to reach a target price of Rs 118 in the near term.To effectively manage risk, it is advisable to implement a stop-loss (SL) at Rs 473 to protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, BSOFT appears to present an attractive buying opportunity for those aiming for a Rs 547 price target, provided that prudent risk management measures are in place.

Bajaj Finance

Buy BAJFINANCE in cash @ Rs 7967.60, stop-loss: Rs 7730, target: Rs 8350

BAJAJ FINANCE has a strong support range between 7800 and 7730 levels. The stock has recovered from its support levels and is now trading near 7967.60. The RSI indicator is also comfortably trading near 72 levels, indicating strength. The stock has a smaller resistance near 8050 levels which is also an all-time high level for the stock.

Once the stock exceeds the previously mentioned levels, it may move towards the 8350 level and above. Currently stock is trading above all the important moving averages indicating strength. Based on the above-mentioned technical analysis, we recommend purchasing BAJAJ FINANCE at the current market price of 7967.60 with a medium-term target price of 8350. If the price falls below 7730, our analysis will be deemed invalid.

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.