Shares To Buy Today: Day Trading Guide By Sumeet Bagadia of Choice Broking On Monday, 6th May

Last week's closing of the benchmark indices was a mixed bias amid positive global cues. The Frontline Indices Nifty climbed by +0.25% to close the week over 22,450, while the Sensex climbed by +0.20% to close the week above 73,850. The all-time highs for the Nifty and Bank Nifty were 22,794 and 49,974, respectively. With gains of 3.33%, 3.09%, and 2.42%, respectively, the Power, PSU, and Auto indices were the top gainers. With losses of 3.13%, 2.25%, and 0.66%, respectively, media, IT, and real estate were the top losers. Top Nifty Gainers were M&M, Power Grid Corp., and Grasim India. Top Nifty Losers were Larsen & Toubro, Maruti Suzuki, and Nestle India. The past week, FII was a net seller of equities worth Rs 2,115 cr, while DII was a net buyer of stocks worth Rs 2,121 cr.

Nifty Outlook

"In Nifty, the immediate resistance is identified within the 22,600-22,700 range, characterized by notable call writing activity in the options market. Conversely, immediate support is observed at the 22,300 mark, with a breach below potentially amplifying downward momentum. Technically, the Nifty 50 has demonstrated resilience around the 22,300 level, suggesting a potential upward trajectory towards the 22,700-22,800 levels following the ongoing consolidation phase, provided the index maintains closure above this level. However, a break below 22,300 could lead to a downward movement towards the 22,000 level," said Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd.

Bank Nifty Outlook

"The Bank Nifty has recently slipped beneath the crucial 49,000 level and breached an upward sloping resistance trendline, which previously provided support over the last two sessions. This decline amounted to 308 points, bringing the index to 48,924. However, it managed to hold above the 10-day EMA at 48,683, serving as immediate support. Subsequently, the 21-day EMA at 48,270 is another level to watch, potentially offering support if tested. On the upside, immediate resistance is expected within the range of 49,200 to 49,300. Key support levels are positioned at 48,400 to 48,300, crucial areas to monitor for potential shifts in market sentiment," Arvinder Singh Nanda further added.

Market Outlook

Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One said, "Considering the momentum from the previous trading week, our domestic market started the new week on a flat to positive note and maintained its positive stature for most of the sessions. The benchmark index stayed put on the higher grounds, registering fresh highs, but the intense bout of profit booking on the last day led Nifty to have a subdued weekly closure at 22475, procuring a mere 0.25 percent to the bull's kitty. The truncated yet eventful week featured many twists and turns, keeping the traders' fraternity on its toes. Both key indices registered a record high in the week but failed to have a follow-up interest, leading to indecisiveness among participants."

"From a technical standpoint, the index has certainly managed to hold the higher ground, but with the developments in the last session, it would be crucial to watch for the pivotal support zones for the upcoming trading week. For now, the immediate swing low of the 22350-22300 subzone is likely to provide a firm cushion for any intra-week blip, followed by the 50 DEMA of 22230 and the bullish gap around the 22200 zone. On the higher end, the record-high zone of 22750-22800 seems daunting for the bulls and until we witness a decisive breakthrough, the next leg of rally toward the 23000 mark seems demanding," Osho Krishan predicted.

"We remain hopeful that broader participation will continue and propel the benchmark to new highs. Strong participation by the high beta index Bank Nifty is crucial to strengthening momentum in the upcoming week. For the time being, we would remain neutral and the ideal strategy would be to take one step at a time. Considering the domestic scenario, one needs to stay light on positions on either side for key indices. Simultaneously, a check on global bourses is advisable, which may act as a catalyst to dictate the near-term trend for our markets," the analyst added.

Stocks To Buy Today

On Monday, May 6, Sumeet Bagadia, the executive director of Choice Broking, presented recommendations for two intraday stocks with a buy or sell rating.

Triveni Turbine

Buy TRITURBINE in cash @ Rs 576.15, stop-loss: Rs 555, target: Rs 622

TRITURBINE daily chart indicates a significant shift in market dynamics, transitioning from a period of slight declines and sideways consolidation to a promising upward movement. The current trading session shows an upward momentum, breaking out of a narrow range and forming a rounding bottom pattern on the daily chart. Any up move above 588 could potentially signal a breakout to the upside. This development aligns with a positive short-term trend, supported by a notable increase in trading volume.

Key technical indicators, including the Relative Strength Index (RSI), highlight the stock's positive momentum. The RSI not only displays positive signals but also shows the stock trading above crucial moving averages-specifically, the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). This convergence suggests a sustained strength in TRITURBINE price action.

Volume analysis further supports the credibility of the upward movement, with a significant increase accompanying the positive trend.

A comprehensive evaluation of TRITURBINE daily chart implies the existence of a broader bullish pattern in the stock price. This, in turn, presents an appealing long trading opportunity for investors looking to capitalize on the expected upward trajectory.

Based on the above analysis, we recommend purchasing TRITURBINE in cash at the current market price of 576.15, with a target of 622 and a stop loss set at 555.

Sobha

Buy SOBHA in cash @ Rs 1856, stop-loss @ Rs 1796, target @ Rs 1988

SOBHA is exhibiting strong bullish momentum, currently trading at an all-time high of 1969.05 levels. The recent breakout above the crucial resistance at 1800 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, SOBHA 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 75.70 levels.

For traders, keeping an eye on the strong support near 1796 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, SOBHA 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 SOBHA and the CMP of 1856 with a stop loss of 1796 for the target of 1988.

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.