Finolex Industries Vs eClerx Services: 2 Intraday Picks By Sumeet Bagadia On Tuesday, 8th October

The country's benchmark indices began the day higher, following global trends on Monday. After an initial rally, the Nifty remained under pressure and ended the day down at 24,796. It had begun the day flat to positive. After an early rally, Bank Nifty continued to be pressured and closed on a negative note at 50,479, having begun on a flat to positive one. A spike in market volatility was indicated by the volatility index, INDIA VIX, which increased by 6.74% and settled at 15.08.

Nifty Outlook

"Technically, on the daily chart, the index formed a red candle, signaling weakness. However, the index managed to defend the 24,750 level, providing some relief for the bulls. As long as the index holds within the 24,700-24,750 range, a short-term pullback could be possible. However, if Nifty sustains below 24,700, deeper declines could follow," commented Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bank Nifty Outlook

"Technically, the index formed a big red candle on the daily scale, indicating weakness. Moreover, the index experienced a short-term trend line breakdown and closed below the 100-DSMA support, indicating further weakness. On the upside, the index will face immediate resistance near the 51,000-51,100 levels. On the downside, the psychological level of 50,000 will act as important support, followed by 49,650," predicted Hrishikesh Yedve.

Stocks To Buy Today

Executive director of Choice Broking Sumeet Bagadia recommended buying two stocks on Tuesday, October 8, citing a negative change in the market as the Nifty is trading below the 50-day Exponential Moving Average (DEMA) on the daily chart.

Finolex Industries

Buy FINPIPE in Cash @ Rs 294.4, stop-loss @ Rs 283, target @ Rs 310

FINPIPE is currently trading at Rs 294.4, showing a strong reversal from its support levels. The recent price action indicates a sharp upward movement, with the stock gaining 8.37% in a single session, which suggests a bullish run. The formation of a strong bullish candlestick reflects renewed buying interest. If the price closes above the resistance level of Rs 298, it could reach a short-term target of Rs 310.

On the downside, immediate support is located at Rs 290, presenting potential buying opportunities on dips. The Relative Strength Index (RSI) is currently at 51.24 and trending upward, signaling increasing buying momentum. To manage risk effectively, it is advisable to set a stop-loss at Rs 283 to protect against unexpected market reversals.

In summary, based on technical analysis and current market conditions, FINPIPE seems to offer an appealing buying opportunity for those targeting Rs 310, provided that appropriate risk management strategies are in place.

eClerx Services

Buy ECLERX in cash @ Rs 3077.05, stop-loss @ Rs 2975, target @ Rs 3300

ECLERX is exhibiting strong bullish momentum, currently trading at an all-time high of 3217 levels. The recent breakout above the crucial resistance at 3030 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, ECLERX is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 69 levels.

For traders, keeping an eye on the strong support near 2975 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, ECLERX current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying ECLERX and the CMP of 3077.05 with a stop loss of 2975 for the target of 3300.

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.