Stocks To Buy Tomorrow: Intraday Technical Picks By Sumeet Bagadia On Monday - 4th Nov

Strong Q2 performance by PSU banks and a drop in oil prices due to expectations of an easing of tensions in the Middle East helped boost market mood, which helped the Indian benchmark indices recover and end the week on an upward trajectory. The India Volatility Index, or India VIX, gauges how volatile the market expects the Nifty 50 index to be. It increased by +8.68% and ended the week at a level of 15.90. The benchmark indices closed in the green after a rise helped by the positive Q2 results from ICICI Bank, Sun Pharma, Federal Bank, and L&T. Major macroeconomic data and the outcome of the U.S. presidential election, which is scheduled for November 5, will determine the market's outlook this week.

Nifty Outlook

"Nifty closed the week with a modest gain, forming an inside candle on the weekly charts. The key resistance is at 24,500; a breakout above this level may trigger a rally towards 24,800. Conversely, if Nifty breaks below 24,100, it could experience further selling pressure, possibly testing the 23,800 level. The market remains under pressure, suggesting a cautious stance. The strategy remains to sell on any rise until a decisive breakout above resistance confirms a bullish reversal. Traders should watch for these key levels, with a focus on risk management amid ongoing market volatility," said Ms. Palka Arora Chopra, Director of Master Capital Services Ltd.

Bank Nifty Outlook

"Bank Nifty displayed strength this week, closing with a 1.75% gain and finding support near the 51,000 level. A breakdown below this support could increase selling pressure, potentially pulling the index down toward 50,500. On the upside, buying interest is likely to emerge only above the 51800 which may take the index towards 52300 levels. Until then, the market may remain range-bound between 51,000 and 52,300. Given this setup, the strategy is to adopt a "sell on rise" approach, focusing on shorting near resistance levels. Traders should stay alert for a breakout or breakdown from this range to confirm further directional movement," added Palka Arora Chopra.

Stocks To Buy Tomorrow

Choice Broking's executive director, Sumeet Bagadia, recommended buying two stocks on Monday, November 4th, after October ended with a difficult month for bulls, wiping out gains from the previous two months, with the Nifty falling more than 6%, one of the biggest monthly declines in the recent past.

Tata Power

Buy TATAPOWER in Cash @ Rs 445.45, stop-loss @ Rs 430, Target @ Rs 477

TATAPOWER is currently trading at Rs 445.45, The stock has rebounded from its support zone, suggesting a bullish reversal pattern, and the increase in trading volumes further confirms a bullish outlook. If TATAPOWER sustains above the crucial level of Rs 451, it is likely to continue its upward momentum toward the target price of Rs 477.

The Relative Strength Index (RSI) is currently at 50.52, indicating a healthy uptrend with room for further growth. Additionally, TATAPOWER is trading above its key moving averages, including the 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs), reinforcing the ongoing bullish trend.

Given the current technical setup and momentum, TATAPOWER presents a favorable buying opportunity with a target of Rs 477. To manage risk effectively, a stop loss should be placed at Rs 430 to protect against any potential downside in case of market fluctuations. Proper risk management is essential to ensure protection from unexpected volatility.

Laurus Labs

Buy LAURUSLABS in Cash @ Rs 499.80, stop-loss @ 482, Target @ 535

LAURUSLABS is trading at Rs 445.45 and is characterized by a consistent pattern of higher highs and higher lows, highlighting a clear upward trend. A sustained close above the critical resistance level of Rs 505 could trigger further upside momentum, targeting Rs 535.

The Relative Strength Index (RSI) is at 62.57, indicating positive momentum with room for continued gains. Additionally, LAURUSLABS is trading above key Exponential Moving Averages (EMAs) - the 20-day, 50-day, and 200-day EMAs - which reinforces its bullish structure.

Given the current technical setup, LAURUSLABS presents a favorable buying opportunity with a target price of Rs 535. To manage risk effectively, a stop-loss should be set at Rs 482 to guard against potential downside amid market fluctuations. Sound risk management is essential to navigate any unexpected volatility.

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.