Day Trading Guide: Stocks To Buy On Monday As Guided By Sumeet Bagadia of Choice Broking

On October 13, benchmark indices came to a negative wrap up with the Sensex falling 125.65 points or 0.19 per cent to 66,282.74 and the Nifty falling 43.00 points or 0.22 per cent to 19,751. Top Nifty gainers were Tata Motors, IndusInd Bank, HCL Technologies, Tata Consumer Products, and Nestle India, while losers included Axis Bank, Infosys, Adani Enterprises, SBI, and Wipro. On the sectoral front, Nifty Auto was the top gainer while Nifty PSU Bank was the top loser. On the broad market front BSE midcap and smallcap indices ended on a red note.

Weekly Market Outlook

Commenting on the weekly market outlook, Vinod Nair, Head of Research at Geojit Financial Services went on to say that "The Indian market rebound from the sluggish start, propelled by positive expectations on Q2 earnings and moderation in global bond yield despite concerns over the Middle East conflict continues to hover. However, the release of higher-than-anticipated US inflation data and a resulting increase in treasury yields marginally offset the positive trend by the end of the week. Domestic factors such as a significant drop in CPI data and impressive industrial production helped to sustain the broad optimism. The weak start to the result season by the IT sector's subdued revenue guidance, combined with an uptick in crude oil prices affected the broad market trend. On the other hand, the realty sector performed well, fuelled by significant project launches and an uptick in pre-sales, buoyed by the onset of the festive season. Looking ahead, investors will closely monitor the further commencement of the Q2 earnings season which has high expectations like sectors Auto, Finance and Oil & Gas."

Nifty Prediction On Monday

Om Mehra, Technical Analyst, SAMCO Securities said, "The Nifty index concluded the week with a 0.50 per cent gain, closing at 19,751.05. During this period, a fierce struggle between bulls and bears took place within the 19,600-19,800 price range. The Index experienced pressure primarily from the IT sector, witnessing a 1.65% decline over the week. While Bank Nifty ended at 44,287.95 losing 0.16% within a week. Technically, Nifty formed a bullish candle with a prominent upper shadow on the weekly chart. In daily intervals, it traded below the 20-day Exponential Moving Average (EMA) but found support from the 50-day Daily Moving Average (DMA). The Relative Strength Index (RSI) at 51, suggests a balance of optimism and pessimism."

"A significant break above 19,850 would favor the bulls, while a drop below 19,550 might trigger further selling. Foreign Portfolio Investors (FPIs) continued aggressive selling, offloading equities worth Rs 12,700.24 crore until Thursday of the month. As of Friday's close, the INDIAVIX ended at 10.62, currently hovering near its lower levels. Expectations point towards a volatile market ahead in the coming weeks, with caution advised, when putting bets on stocks in coming weeks as the quarterly earnings season has already begun," Om Mehra further added.

Stocks To Buy On Monday

Here are the 2 stock picks by Sumeet Bagadia, Executive Director at Choice Broking for Monday, 16th October 2023.

HCL Tech

Buy HCLTECH in cash @ Rs 1255.90, stop-loss: Rs 1210, target: Rs 1310

HCL Tech, a prominent technology firm, has been on an upward trajectory, currently trading at a market price (CMP) of 1,255.90. This suggests a strong bullish sentiment surrounding the stock. What's particularly encouraging is that HCL Tech is trading above its 20-day, 50-day, and 200-day moving averages. This alignment of the stock's price with multiple moving averages is a positive sign for investors, indicating a consistent and sustained uptrend.

Additionally, there's a small resistance level at 1,275, which, if broken, could serve as a trigger for further upward movement. This implies that the stock has the potential to push higher.
The Relative Strength Index (RSI) at 54, and on an upward trajectory, suggests increasing buying activity. RSI values between 30 and 70 are often considered healthy for a stock, and an RSI of 54 leaves room for further upside potential.

However, investors should exercise care and keep a watch on the stock if it falls below 1210, as this might negate the favourable outlook. A short-term goal of 1310 is feasible.

Maruti Suzuki

Buy MARUTI in cash @ Rs 10727.55, stop-loss: Rs 10420, target: Rs 11200

MARUTI displays an intriguing technical landscape. Currently, the stock is trading at an all-time high level of 10727.55. The critical support level at 10420, closely aligned with the 20-day Exponential Moving Average (EMA), signifies historical buying interest and provides a foundation for the stock's price stability. This level serves as a potential stop for downward movements.

The Relative Strength Index (RSI) currently stands at 63, indicating a supportive environment for price gains. It's not yet in overbought territory, suggesting room for further growth.

Crucially, MARUTI is trading above all significant moving averages, emphasizing its underlying strength and positive sentiment.

Based on the above analysis we recommend buying MARUTI at the CMP of 10727.55 with a stop loss of 10420 for the targets of 11200.

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.