Day Trading Guide: 2 Stocks To Buy/Sell Today As Recommended By Sumeet Bagadia of Choice Broking

On October 4, benchmark indices experienced a second straight session of losses due to worries about global inflation and the strengthening US dollar. The Nifty was down 92.70 points or 0.47 per cent at 19,436.10 at closure, and the Sensex was down 286.06 points or 0.44 per cent at 65,226.04 at the time. Axis Bank, SBI, IndusInd Bank, NTPC, and Bajaj Auto were Nifty's top losers, while Adani Enterprises, Nestle India, HUL, Eicher Motors, and HDFC Bank were the major winners. Broader indices lag the BSE midcap index, which drops by 1.5%, and the smallcap index, which declines by 1%.

Stock Market Outlook Today

Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas believes that the Nifty opened gap down and witnessed volatile price action through the day. During the first half it fell while in the second half it witnessed an equally strong pullback and as a result it closed well above the intraday lows (19333). The zone of 19320 - 19360 is a crucial support as multiple parameters in the form of the daily lower Bollinger band and the '20 week' moving average is placed. The hourly momentum indicator is on the verge of providing a positive crossover which is a buy signal indicating that the fall is likely to halt and the probability of a pullback increases. In terms of levels, 19330 - 19300 is the crucial support zone while 19520 - 19560 shall act as an immediate hurdle zone.

On the outlook of Bank Nifty he said, "Bank Nifty opened gap down and witnessed volatile price action. The consolidation of the last four trading sessions broke on the downside which is a sign of weakness. The index has corrected around 5.3% in the last three weeks and is appearing oversold. We expect a relief rally over the next few trading sessions. On the downside, support is placed at 43800 - 43600 while resistance is placed at 44400 - 44500."

Stocks To Buy Today

Sumeet Bagadia, Executive Director at Choice Broking has recommended the below stocks to buy or sell today on 5th October.

TCS

Buy TCS in Cash @ Rs 3537.75, stop-loss: Rs 3470, target: Rs 3635

Tata Consultancy Services (TCS) is currently trading at 3573.75 and the chart suggests that TCS has established strong support near 3470 levels which is also close to its 50 Day EMA level. This indicates that the stock has found considerable buying interest around these levels, providing a potential foundation for further upward movement. The Relative Strength Index (RSI) for TCS is currently at 54, indicating that there is still room for potential upside. The stock is trading above all the important moving averages indicating strength.

Considering the technical factors and market conditions, it appears to be a favourable opportunity to buy TCS at the CMP of 3537.75 levels. The target for this trade would be 3635, with a recommended stop loss set at 3470.

Ramco Cements

Buy RAMCOCEM in cash @ Rs 951.60, stop-loss: @ 920, target: Rs 1010

RAMCOCEM appears to be exhibiting several bullish indicators in its recent price action and technical analysis. Firstly, the stock's ability to rebound from the 910 level, which previously acted as a resistance, is a notable development. This turnaround signifies a shift in market sentiment, with former resistance transforming into a support level. It suggests that there is buying interest at this level, providing a foundation for potential upward movement.

Secondly, RAMCOCEM's proximity to its 50-day Exponential Moving Average (EMA) is an encouraging sign. Moreover, the stock's ability to remain above all important moving averages underscores its strength in the current market conditions. This suggests that RAMCOCEM has been able to sustain its positive momentum over time.

Additionally, the Relative Strength Index (RSI) indicator hovering around the 67 level is another bullish factor. Based on the above analysis RAMCOCEM can be purchased at a CMP of 951.60 with a SL of 920 levels for the target of 1010 levels.

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.