Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Tuesday, 7th Nov

On November 6, the benchmark indices continued to rise on the back of positive global cues. The 30-pack Sensex climbed by 594.91 points, or 0.92 per cent, to close at 64,958.69, while the Nifty closed at 19,411.80 after gaining 181.20 points, or 0.94 per cent. SBI, HUL, Tata Motors, Cipla, Titan Company, and Divi's Laboratories were the top Nifty losers, while Hero MotoCorp, Eicher Motors, Larsen & Toubro, and Axis Bank were the top gainers. A weak start for the Indian market amid the fact that Gift Nifty was trading on Tuesday at a price reduction of more than 20 points from Nifty Futures Monday closing and downturn in the Asian market.

Market Outlook

Om Mehra, Technical Analyst, SAMCO Securities said, "Fitch Ratings move to upgrade India's mid-term growth ratings acted as catalyst for Indian markets and as a result for the third consecutive session Benchmark indices closed in green. Sensex settled at 64,958.69 with 0.92 percent gain and Nifty inched up 0.94 percent intraday and closed at 19,411.75 while Bank Nifty gained 0.70 percent and settled at 43,619.40. The majority of sectors ended on a positive note, however, Nifty CPSE and Metal rose by 1.41 and 1.36% respectively. Rotationally, some industrial sectors are performing well."

"Open Interest (OI) Data indicates, on the call side the highest OI was witnessed at 19,600 strike prices while on the put side, the highest OI was at 19,300 followed by 19,200 strike price. Technically, Nifty has formed a bullish candle in the daily chart. In addition, Nifty has closed above the 20-EMA, indicating some relative strength. The indication that the Bollinger band is expanding, indicates that there is enough of room for an extensive rally. However, gap up opening has created some confusion among market participants at higher levels. Nifty is currently trading near the edge of strong resistance near 19,500 levels, as holding overnight positions without hedging would be somewhat risky," the analyst commended on the outlook of Nifty.

Bank Nifty has support at 43,200 while resistance is placed at 44,100. However, until 19,130 is breached in Nifty, the strategy should be to buy on the dip, according to Om Mehra.

Stocks To Buy Today

Choice Broking's Executive Director Sumeet Bagadia has suggested two stocks to buy or sell today, November 7.

Axis Bank

Buy AXISBANK in cash @ Rs 1009.40, stop-loss: Rs 985, target: Rs 1050

AXISBANK appears to be displaying positive signals in its recent price movements. The stock's resilience is evident as it rebounded from a support level of 990 which is also close to its 20 and 50 Day EMA levels, indicating investor interest at that point. At present, AXISBANK is trading around 1009.40 levels, showcasing a recovery from the aforementioned support level. The fact that the stock is trading above key moving averages reinforces the notion of its strength in the current market conditions. A minor hurdle can be observed at the 1025 level, which presents a smaller resistance. Once AXISBANK manages to surmount this resistance, it is anticipated to continue its upward trajectory.

Based on the above analysis we expect AXISBANK to move higher towards 1050 and hence we recommend buying AXISBANK at a CMP of 1009.40 with a SL of 985.

Cochin Shipyard

Buy COCHINSHIP in Cash @ Rs 1004.3, stop-loss: Rs 954, target: Rs 1100

The current trading price of COCHINSHIP is Rs 1004.3. The stock has recently broken out of the daily trend line with a significant increase in trading volume, indicating strong momentum in the stock. If the price manages to close above the Rs 1020 level, it may have the potential to reach near-term targets of Rs 1100 and Rs 1140. On the other hand, immediate support levels are located at Rs 960 and Rs 940.

The Relative Strength Index (RSI) currently stands at 52.27 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 COCHINSHIP has the potential to reach a target price of Rs 1100 in the near future.

To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 954. 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, COCHINSHIP appears to present an appealing buying opportunity for those aiming for a Rs 1100 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.