Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Friday, 3rd Nov

The Nifty crossed the 19,100 level on Thursday, while the Sensex finished the day higher than it started. The Nifty ended up 144.10 points, or 0.76 per cent higher at 19,133.30, while the Sensex gained 489.57 points or 0.77 per cent to close at 64,080.90. GIFT Nifty on Friday shows that the home market may open on a green note, amid gains in the US and Asian markets. GIFTNifty which was trading at a premium of over 100 points, or 0.60%, from the closing of Nifty Futures on Thursday, suggests that the Indian market is off to a good start.

Market Outlook Today

"The Nifty has made a nice comeback after having closed in the negative territory for 2 consecutive days. The Index has an immediate support at 19100 levels and below that 19000 levels whereas 19200 is an immediate resistance and 19300 is the next resistance. The move so far appears to be corrective in nature on the hourly charts, hence this bounce is considered as a dead cat bounce.

The Bank Nifty too has bounced quite well. However, it saw some profit booking from the higher levels, however, 42700 to 42500 are crucial support levels in the near term whereas 43500 to 43700 are crucial resistance levels. So, till the above-mentioned support levels are held the short-term bounce can't be ruled out. The overall medium-term trend, however, is still negative only; hence traders should be hedged and not be over aggressive on the long side in this bounce," said Jay Thakkar - Head - Alternate Research, Capital Market Strategy at Sharekhan by BNP Paribas.

"On the daily chart, the Nifty is trading below the 20-day moving average (DMA) and the 40-DEMA of 19439 and 19456 respectively. The momentum indicator has a negative crossover on the daily chart. On the hourly chart, the Nifty is trading in above the 20-hour moving average (HMA) and the 40-HEMA of 19077 and 19117 respectively. The momentum indicator has a positive crossover on the hourly charts. The market breadth was positive with 1717 advances and 743 declines on the National Stock Exchange," said the analyst.

Stocks To Buy Today

Sumeet Bagadia, Executive Director at Choice Broking has recommended 2 stocks to buy/sell/add today 3rd November.

Sun Pharmaceutical Industries

Buy SUNPHARMA in cash @ Rs 1132.85, stop-loss: Rs 1105, target: Rs 1180

Sun Pharma, is presently trading at 1132.85 levels, having recently broken out from its resistance near 1125 levels which was also close to its 50 and 20 Day EMA levels. This breakout signifies a potential shift in the stock's price dynamics, making it an intriguing investment prospect.

In addition, the Relative Strength Index (RSI) is trending upward and appears to be on the verge of a positive crossover, indicating a potential increase in buying pressure. Moreover, Sun Pharma's price is currently positioned above its 20-50-200 Day Exponential Moving Averages (EMA), suggesting underlying strength in the stock.

Taking all these factors into consideration, it is our professional opinion that Sun Pharma presents a favourable buying opportunity at the current price of 1132.85, with a target price of 1180. It is important to note that our views would be invalidated if the stock were to fall below the 1105 level.

Radico Khaitan

Buy RADICO in cash @ Rs 1279.25, stop-loss @ Rs 1218, target: Rs 1400

RADICO is currently trading at Rs 1279.25. After a correction, the price has consolidated at support levels and formed a Double Bottom chart pattern on the daily chart. This pattern is accompanied by significant trading volume. Furthermore, RADICO is finding support above critical Exponential Moving Averages (EMAs), including the 200-day EMA. These factors reinforce its bullish momentum and suggest the potential for further upward price movement.

The Relative Strength Index (RSI) currently stands at 59.49 and is trending upwards, indicating growing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) recently experienced a positive crossover from the oversold region. This combination of technical indicators suggests that RADICO may have the potential to reach a target price of Rs 1400 in the near term.

To effectively manage risk, it is advisable to implement a stop-loss (SL) at Rs 1218 to protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, RADICO appears to present an attractive buying opportunity for those aiming for a Rs 1400 price target, 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.