Stocks To Buy Today: 2 Stock Picks By Sumeet Bagadia To Trade On 18th, Oct

On Tuesday, the Nifty 50 ended at 19,811.50, up 79.75 points or 0.4%, while the Sensex settled at 66,428.09, up 261.16 points or 0.39%. In addition, Bank Nifty surged 183.60 points, or 0.42%, to close at 44,409.50. The second quarter earnings season and geopolitical concerns are likely to be of concern to traders.

On October 18, among others, major Q2 results are expected from Bajaj Auto, Bandhan Bank, IndusInd Bank, LTIMindtree, Wipro, Persistent Systems, and UTI AMC. The Indian market is likely to begin on a flat tone on Tuesday amid the Israel-Hamas war because the Gift Nifty moved down in the early deals and Asian markets were mixed.

Market Outlook Today

Aditya Gaggar Director of Progressive Shares said, "Following its global counterparts, the Indian bourses started the session on a strong note but after an uptick in the initial hour, the Index oscillated in a thin range of 19,800-19,840 before a reversal in the last session helping the Major Index to end the day at 19,811.50 with gains of 79.75 points. All the sectors ended the day in green where Energy and PSU Banks were the top performers.

A mixed trend was seen in the Broader markets where Midcap moved in tandem with the Frontline Index while Smallcaps outperformed. On the daily charts, Nifty is on the verge of giving a breakout from the continuation pattern known as Cup and Handle formation where a level of 19,850 is a breakout point with an expected target of 20,350."

Nifty Prediction Today

Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said, "On the daily charts the Nifty broke the Inside bar pattern on the upside which has bullish implications. The daily and hourly momentum indicator has a positive crossover which indicates that the dips should be bought into. On the upside the index is likely to continue its rally towards 19883 and beyond that potentially towards 20030. On the downside the key hourly moving averages placed in the range 19770 - 19750 are likely to act as a cushion in case of a dip."

Bank Nifty Prediction Today

"Bank Nifty opened gap up however was unable to capitalize on the gains and it corrected intraday. However, the dip is likely to witness buying interest in the xone of 44350 - 44300 where support in the form of the key hourly moving averages are placed. we expect the pullback in bank nifty towards 45,000 from short term perspective. On the downside 44100 - 44000 shall act as a crucial support," said Jatin Gedia.

Stocks To Buy Today

Sumeet Bagadia, Executive Director at Choice Broking has recommended 2 stocks to buy on Wednesday, 18th October 2023.

Bajaj Auto

Buy BAJAJ_AUTO in cash @ Rs 5141.25, stop-loss: Rs 5020, target: Rs 5330

Bajaj Auto's stock presents a compelling technical picture. Notably, it holds a robust support level at 5020, signifying historical strength and the potential to attract buyers. Additionally, its proximity to the 20-Day Exponential Moving Average (EMA) is an encouraging sign, indicating short-term bullish sentiment. The daily chart reveals the formation of a robust bullish pattern, suggesting an uptrend in the making. The Relative Strength Index (RSI) comfortably trading near 63 further supports the case for strength, as it indicates that the stock is not overbought, leaving room for potential gains.

Moreover, the fact that the stock has closed above significant EMA levels is a positive development, reinforcing the notion that the current momentum is supported by both short-term and intermediate-term trends. These combined technical indicators create an appealing outlook for Bajaj Auto's stock, potentially attracting more investors and traders eager to capitalize on the positive momentum. However, it's essential to remember that the stock market can be volatile, so it's advisable to consider other factors and conduct thorough research before making investment decisions.

We recommend purchasing BAJAJ_AUTO at the current market price of 5141.25 with a medium-term target price of 5330. If the price falls below 5020, our analysis will be deemed invalid.

Karur Vysya Bank

Buy KARURVYSYA in cash @ Rs 144, stop-loss: Rs 139, target: Rs 152

Karur Vysya Bank (KARURVYSYA) is currently trading at 144, having recently broken out from its previous resistance level of 138. The stock displays robust momentum, with the Average Directional Index (ADX) standing at a commendable 28. Additionally, the Relative Strength Index (RSI) is exhibiting a positive uptrend, currently resting at 72. Noteworthy is the Bollinger Band, indicating an expansion in volatility. Furthermore, the stock has decisively closed above crucial short, mid, and long-term moving averages (20, 50, 100, and 200 EMA), indicative of a robust bullish trend.

Given the current technical indicators, it appears likely that we may witness a notable price movement, potentially reaching levels around 152 in the short term. To safeguard against adverse market movements, it is advisable to implement a stop loss at 139. Investors should consider these factors in their decision-making process and closely monitor the stock for any further developments.

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.