Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Thursday, 9th Nov

Wednesday's flat closing close for benchmark indices was caused by rising bond yields and declining crude oil prices. The Nifty gained 36.80 points, or 0.19 per cent, to close at 19,443.50, while the Sensex surged 33.21 points, or 0.05 per cent to settle at 64,975.61. BPCL, Adani Ports, Cipla, Asian Paints, and Titan Company were among the top Nifty gainers; ICICI Bank, NTPC, Tech Mahindra, Infosys, and Tata Consumer Products were among the losers. With the exception of the banking and IT sectors, every other sector's indices ended higher with the day's top performer being the pharmaceutical sector. The BSE Small-Cap and Mid-Cap indices ended the day higher by 0.60% and 0.78%, respectively, on the broader market front.

Market Outlook Today

Aditya Gaggar, Director of Progressive Shares said, "Indian equities continued to advance but with a weak/rangebound movement, a strong bullish candle above the hurdle of 19,500 will boost the conviction in the momentum. The immediate resistance stands at 19,500 while the downside is protected at 19,315. Crude oil has given a breakdown from the Head and Shoulder formation which indicates further downside is on the cards, a correction in crude oil is beneficial for the Indian economy as a whole and for the specific industries as well (OMC's, Paints, Tyres, and so on). The stocks from the mentioned industries will remain in focus."

"Another overhang was a rising bond yield but from the past couple of days, a correction was witnessed in it also and that gives room for the equities to advance further. Sector-wise, we are bullish on the Pharma space as it's on the verge of giving a major consolidation breakout in the form of a bullish flag and pole pattern, post the breakout, one can expect outperformance from the sector. A robust momentum was observed in the Infra stocks and we feel an extension of the current move (Ashoka Buildcon, ITD Cementation, and NCC). Railway stocks are giving an early sign of another round of rally (Ircon, IRFC, Railtel, and RVNL- majority of them have given a breakout from the bullish flag and pole formation but waiting for the confirmation)," he further added.

Nifty Outlook Today

Rupak De, Senior Technical analyst at LKP Securities said, "Nifty remained within a trading range as traders chose to wait ahead of the Fed Chairman's speech. Nonetheless, the prevailing trend appears bullish as the Nifty closed above a critical short-term moving average. Notably, significant support from put writers is evident at 19400, where they have established a substantial position. On the lower side, support levels are situated at 19400/19300. Conversely, resistance on the higher end is positioned at 19500, where call writers have added significant positions."

Bank Nifty Outlook Today

Rupak De went on to add that, "Bank Nifty traded sideways throughout the day. Nevertheless, the prevailing trend appears to be bullish as the index closed above a critical short-term moving average. Support is established at 43500 on the lower end. As long as the index maintains its position above 43500, a "buy on dips" strategy is considered appropriate. On the higher end, there is potential for the index to advance towards 44200."

Stocks To Buy Today

Sumeet Bagadia, the executive director of Choice Broking, recommended two stocks for trading on November 9th.

Sobha

Buy SOBHA in cash @ Rs 789, stop-loss: Rs 766, target: Rs 815

Based on a comprehensive analysis of SOBHA's current market conditions, it appears to be a favorable opportunity for investment.

The stock is currently trading at 789, having demonstrated strength by closing above its short, mid, and long-term moving averages (50, 100, 200 EMA).

The Relative Strength Index (RSI) stands at 64, indicating a healthy level of momentum. Additionally, the Average Directional Index (ADX) reflects a moderately strong trend at 19.

This suggests a positive bias with potential for further upside. Notably, the stock has recently emerged from a consolidation phase, and breaking the 800 mark could catalyze significant upward movement.

With a prudent approach, a recommended entry point is at 789, setting a stop loss at 766, and targeting 815 for potential gains.

Persistent Systems

Buy PERSISTENT in cash @ Rs 6283.7, stop-loss: Rs 6125, target: Rs 6600

The current trading price of PERSISTENT is Rs 6,283.7. The stock has recently consolidated at a resistance level and formed a hammer candlestick pattern on the daily chart with a significant increase in trading volume, indicating strong momentum in the stock. If the price manages to close above the Rs 6,300 level, it may have the potential to reach near-term targets of Rs 6,350 and Rs 6,400. On the other hand, immediate support levels are located at Rs 6,125.

The Relative Strength Index (RSI) currently stands at 69.96 and is trending upward, indicating increasing buying momentum. Furthermore, the Stochastic Relative Strength Index (Stoch RSI) has recently experienced a positive crossover, moving out of the oversold region. These technical indicators, when considered together, suggest that PERSISTENT has the potential to reach a target price of Rs 6,600 in the near future.

To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 6,125 and consider buying on dips around Rs 6,200 and Rs 6,170 levels. This precaution will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and the current market conditions, PERSISTENT appears to present an appealing buying opportunity for those aiming for a Rs 6,600 price target, provided that appropriate 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.