Stocks To Buy/Sell On 17th October, Tuesday As Recommended By Sumeet Bagadia of Choice Broking

Benchmark indices ended on a red note in the volatile session on October 16 amid mixed global cues. The Nifty dropped 19.20 points or 0.10 per cent to 19,731.80 at closure, and the Sensex was down 115.81 points or 0.17 per cent at 66,166.93. The top 5 losers include Divis Laboratories, followed by Nestle India, TCS, IndusInd Bank, Adani Ports, and IndusInd Bank. Hero MotoCorp, JSW Steel, Tata Steel, UPL, and LTIMindtree were among the gainers. On the sectoral front, Nifty Metal was the top gainer whereas Nifty Pharma was the top loser.

Market Outlook Today

Aditya Gaggar, Director of Progressive Shares said, "The week started with a rangebound trading session that settled at 19,731.75 with a moderate loss of 19.3 points. An early indication from the GIFT Nifty suggests a possible violation of its stiff hurdle of 19,800 and with a follow-through momentum, and if Nifty50 manages to surpass a level of 19,850, then it will be considered as a breakout from the Cup and Handle pattern (continuation formation). In the case of a breakout, the target is 20,350.

Post the Q2 earnings, movement in HDFC Bank is likely to decide the direction for the BankNifty. The Metal and PSU Banking counters have shown some buying traction in the previous trading session and for continuing their uptrend, follow-through momentum is a must. Stock-specific buying is likely to continue in the Realty space. Most of the Fertilizer counters have given a strong breakout with considerable volume that indicates demand for the stocks; however, a sharp rally has been already seen, so one should adopt buy on dip strategy."

Nifty Outlook Today

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "Nifty consolidated between the 19,740-19,780 range throughout the day before the emergence of the selling pressure towards the end led to the Index closing at 19,732, down 19 points. The Long-Short Ratio jumped from 26.19% on October 10 to 28.57% on October 12 before falling marginally to 27.21% on October 13, indicating lack of buying interest from the Foreign Portfolio Investors (FPIs) in the Index Futures. Nifty will continue to remain choppy until 19,850 level is successfully taken out. Both the call & put writers battled it out at 19,750 & 19,800 Strikes today. The option activity at 19,700 Strike will provide cues about Nifty's future direction."

Bank Nifty Outlook Today

"Bank Nifty shrugged off its initial weakness to rise steadily before consolidating in the second half to close at 44,226, down 62 points. Bank Nifty has formed a doji pattern on the daily chart in 6 out of 9 previous trading sessions, indicating prolonged indecision. The option activity at 44,200 Strike will provide cues about Bank Nifty's Intraday direction Tuesday," said Ashwin Ramani.

Stocks To Buy Today

Sumeet Bagadia, Executive Director at Choice Broking has picked up the below 2 large-cap stocks to trade on Tuesday, 17th October.

Indraprastha Gas

Buy IGL in cash @ Rs 481.05, stop-loss @ Rs 465, target @ Rs 515

The stock is currently trading around 481.05 levels. The stock was facing multiple resistances in the range of 472-475 levels. The stock is trading above all the important moving averages. The stock has strongly moved on higher side and hence we can witness a breakout on charts.

This breakout is supported with good volumes which indicate strength. Now any dip in the stock around 475 levels will be a buying opportunity. The stock can now further move towards 515 levels and higher. The investors holding from lower levels should keep trailing stop loss.

According to the aforementioned technical analysis, we advise buying IGL at the CMP of 481.05 for the target of 515. If the stock closes below 465, our analysis will be invalid.

JSW Steel

Buy JSWSTEEL in cash @ Rs 789.6, stop-loss: Rs 770, target: Rs 825

JSWSTEEL is currently trading at Rs 789.6. On the daily chart, an inverted head and shoulder pattern breakout formation has occurred with strong volume. If the price manages to sustain itself above the Rs 795 level, it has the potential to target levels of Rs 810 and Rs 825 as immediate resistance. Conversely, Rs 770 serves as a crucial support level.

Additionally, JSWSTEEL is currently trading above critical Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, reinforcing its bullish momentum and indicating the possibility of further upward price movement.

The Relative Strength Index (RSI) is currently at 62 and trending upwards, signifying increasing buying momentum. Furthermore, the Stochastic Relative Strength Index (Stoch RSI) has recently shown a positive crossover from the oversold region. This combination of technical indicators suggests that JSWSTEEL may have the potential to reach a target price of Rs 825 in the near term.

To effectively manage risk, it is advisable to implement a stop-loss (SL) at Rs 770 to safeguard your investment in case of an unexpected market reversal. In summary, considering the technical analysis and current market conditions, JSWSTEEL appears to offer an appealing buying opportunity for those targeting an Rs 825 price objective, provided that prudent risk management measures are in place.

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.