Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Tuesday, 31st Oct

On October 30, ahead of key economic data such as monetary policy announcements from Malaysia and Japan, inflation statistics from South Korea, and GDP data from Taiwan and Hong Kong, Indian benchmark indices closed higher for the second straight day. The Nifty gained 93.60 points, or 0.49 per cent to close at 19,140.90, while the Sensex gained 329.85 points, or 0.52 per cent to settle at 64,112.65. The BSE Midcap and Smallcap indices ended the day higher on the broader market front. BPCL, UltraTech Cement, ONGC, Reliance Industries, and SBI Life Insurance were the top gainers on the Nifty wrap, while UPL, Tata Motors, Maruti Suzuki, Eicher Motors, and Axis Bank were the top losers.

Nifty Outlook Today

Mr. Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "Nifty shrugged off its initial weakness and rose sharply throughout the day to close at 19,141, up 94 points. The Future Open Interest (OI) indicated buildup of fresh long positions in Index futures.

The Long-Short ratio improved marginally from 10.88% on 26th October to 12.30% on 27th October as the Foreign Portfolio Investors (FPIs) marginally increased their exposure to longs in Index futures. Nifty has given consecutive higher close on the daily chart. Strong put writer additions was observed at 19,000 & 19,100 Strike, which led to a sharp up move. The option activity at 19,150 Strike will provide cues about Nifty Intraday direction tomorrow. The level of 19,000 is expected to act as a strong support for Nifty."

Bank Nifty Outlook Today

Ashwin Ramani said, "Bank Nifty took Intraday support from the 42,400 level and rose sharply to close at 43,039, up 257 points. Bank Nifty has formed a hammer like candle on the daily chart. The option activity at 43,100 is going to be key for the Index as both the writers were seen battling it out to dethrone the other. A close above 43,100 can lead to initiation of fresh longs which can take the Index until 43,800 levels."

Stocks To Buy Today

The technical stocks mentioned below have been recommended to either buy or sell by Choice Broking's Executive Director Sumeet Bagadia on Tuesday, October 31, 2023.

DLF

Buy DLF in Cash @ Rs 554.45, stop-loss: Rs 531, target: Rs 613

DLF is currently trading at Rs 554.45, and it has recently experienced a significant price breakout from the daily trendline, accompanied by strong trading volume. Furthermore, DLF is currently trading above critical Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This reinforces its bullish momentum and suggests the potential for further upward price movement.

The Relative Strength Index (RSI) is currently at 56.54 and trending upwards, indicating a growing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has recently undergone a positive crossover from the oversold region. This combination of technical indicators suggests that DLF may have the potential to reach a target price of Rs 613 in the near term.

To effectively manage risk, it is advisable to implement a stop-loss (SL) at Rs 531 to protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, DLF appears to present an attractive buying opportunity for those aiming for a Rs 613 price target, provided that prudent risk management measures are in place.

BPCL

Buy BPCL in Cash @ Rs 346.90, stop-loss: Rs 337, target: Rs 368

BPCL's current stock analysis suggests a favourable outlook. It's presently trading at 346.90 levels and has recently rebounded from a robust support zone spanning 331-337 levels. This rebound showcases notable buying interest within this range, solidifying it as a key support level.

Furthermore, a bullish candlestick pattern on the daily charts, supported by healthy trading volumes, indicates a positive shift in market sentiment. This pattern implies a transition from a bearish sentiment to a more optimistic one, which can result in an upward trajectory for the stock's price.

Notably, there's a minor resistance level observed around 350, which closely aligns with the 50-day Exponential Moving Average (EMA). Breaking above this resistance could pave the way for the stock to move towards a target of 368 levels or potentially even higher.

Based on this analysis, one may consider buying BPCL at the CMP of 346.90, setting a stop loss at 337, and aiming for a target of 368.

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.