Day Trading Stocks: 2 Buy/Sell Picks By Sumeet Bagadia On Monday, 9th September

The benchmark indices snapped a three-week winning streak at the close of the previous week. This week, the Sensex lost (-1.43%) and the Nifty fell (-1.52%), ending the week at 24,852. Nifty Bank ended the week at the (-1.51%) 50,576 mark, finishing in the red. While Nifty Small Cap 250 ended the week in the green at (+0.76%) 18,307, Nifty Midcap 150 completed the week in the red at (-1.14%) 21675. Sadly, all three of these indices-Nifty FMCG, Nifty IT, and Nifty Pharma-closed the week lower than when they started, despite the fact that they all traded at all-time highs. The week wrapped up with losses for all of the key Nifty indices, including Nifty Auto, Nifty Realty, Nifty Metal, Nifty Media, Nifty Financial Services, Nifty PSU Bank, Nifty IT, and Nifty Pharma. With a minor gain of +0.18% and a closing price of 63,175, Nifty FMCG was the only significant Nifty index to close the week in the green. Hero Motocorp, Asian Paints, Bajaj Finserv, and Titan Company were the primary gainers among stocks, while the top losers were Coal India Ltd., Oil & Natural Gas Corp., Tata Motors Ltd., and Dr Reddy's Laboratories. The past week saw a rise in the India Volatility Index (VIX), which gauges the anticipated volatility of the market, wrapping up at the 15.21 level (+13.63%). The Federal Reserve is expected to lower interest rates, therefore the forthcoming FOMC meeting in mid-September is generating a lot of interest globally.

Nifty Prediction

Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, said "Nifty is showing early signs of weakness, with a bearish engulfing candlestick pattern forming on the weekly chart. The index closed just above its 20-DMA at 24,850. If it slips below this level, we could see further downside toward the 24,000 mark, with intermediate support in the 24,600-24,450 zone. On the upside, the 25,000-25,200 range now acts as an immediate resistance zone."

Bank Nifty Prediction

"Bank Nifty, which has been the underperforming index, failed to gain momentum and has once again slipped below its 20-DMA. The breakdown of an inverse flag formation signals potential downside. The immediate support lies at the 100-DMA of 50,200, with the next key level at 49,650. A break below 49,600 could push the index toward its 200-DMA around the 48,600 level. On the upside, the 51,200-51,500 range will act as a key resistance zone," predicted Pravesh Gour.

Market Outlook

"Globally, the upcoming FOMC meeting, scheduled for mid-September, is drawing significant attention, with widespread expectations that the Federal Reserve will cut interest rates. The magnitude of this reduction will largely depend on the latest employment data. If the U.S. jobs report falls short of expectations and unemployment rises, it could prompt the Fed to implement a more substantial rate cut of 50 basis points," said Pravesh Gour.

"Domestically, investors will be closely watching the rupee's movement against the dollar, crude oil prices, and the investment trends of foreign portfolio investors (FPIs) and domestic institutional investors (DIIs). Additionally, geopolitical developments and shifts in crude oil prices will be key factors influencing market trends in the coming weeks," he further stated.

Stocks To Buy

On September 9, Choice Broking's executive director Sumeet Bagadia recommended buying two intraday stocks following the formation of a bearish engulfing pattern on the weekly chart by the Nifty 50, which indicated major selling pressure.

PI Industries

Buy PIIND in Cash @ 4613.25, stop-loss @ 4445, target @ 4980

PIIND is currently trading around Rs 4,613.25, having consolidated at higher levels, and has recently broken out of its consolidation range on the daily chart. The stock has rebounded from its demand zone, suggesting that the bullish trend is likely to continue. This breakout, supported by notable trading volumes, indicates a potential continuation of the uptrend. If the price holds above Rs 4,660 on a closing basis, it could likely move towards new highs.

The Relative Strength Index (RSI) is at 66.26 and trending upward, indicating increased buying momentum. Additionally, PIIND has bounced back from its 20-day EMA, further reinforcing a bullish outlook.

Based on the current technical indicators and price action, PIIND appears well-positioned for a potential upward move. Investors could consider buying on dips, with a stop loss at Rs 4,445 to manage risk. The target price of Rs 4,980 aligns with resistance levels, offering a favorable risk-reward ratio and making this a promising trading opportunity.

Tata Technologies

Buy TATATECH in Cash @ 1112.65, stop-loss @ 1060, target @ 1215

TATATECH is currently trading at Rs 1,112.65 and appears to be on the verge of breaking out from a cup and handle pattern on the daily chart. This pattern is supported by a significant increase in trading volume, suggesting a potential breakout. If the price successfully closes above the Rs 1,125 level, it could reach short-term targets of Rs 1,215.

The Relative Strength Index (RSI) is at 68.42 and trending upward, indicating increasing buying momentum. Additionally, TATATECH is trading above its key moving averages, including the short-term (20-day), and medium-term (50-day) EMA levels, which confirms the strength of the current uptrend.

Considering these technical indicators, we recommend entering a long position in TATATECH at Rs 1,112.65. With a stop loss set at Rs 1,060 and a target price of Rs 1,215, this trade aligns well with the current positive market sentiment.

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.