Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Wednesday, 1st Nov

In the tumultuous day on October 31, benchmark indices ended with a decline ahead of the US Fed policy meeting, where it is generally anticipated that rates would remain unchanged. The Nifty dropped 61.30 points, or 0.32 per cent to close at 19,079.60, while the Sensex tanked 237.72 points, or 0.37 per cent, at 63,874.93. M&M, Sun Pharma, Eicher Motors, LTIMindtree, and ONGC saw the most declines on the Nifty, whilst SBI Life Insurance, Titan Company, HDFC Life, Kotak Mahindra Bank, and Asian Paints saw the biggest profits. In the broader market, the smallcap index ended steady while the BSE midcap index climbed by 0.3 per cent.

Nifty Outlook Today

Mr. Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "Nifty opened with a gap up but lost steam quickly and continued to slide to close the day at 19,080, down 61 points. The Future Open Interest (OI) indicated buildup of fresh short positions in Index futures. The India VIX, known as the fear indicator, rose 2.9% on Intraday basis to 11.83, gave discomfort to the bulls.

Heavy call writing was observed at 19,200 & 19,300 Strike, which led to a strong down move in Nifty today. The level of 19,060 acted as a strong support for the Index on Intraday basis. The maximum call open interest (OI) for Nifty is placed at 19,000 Strike and a break below the same can lead to continuation of the short-term bearish trend. The option activity at 19,100 Strike will provide cues about Nifty Intraday direction Wednesday."

Bank Nifty Outlook Today

"Bank Nifty moved in lower swing high formation throughout the day and closed at 42,846, down 193 points. Heavy call writing was observed at 43,000 Strike, leading to a down move in Bank Nifty today. The level of 42,800 will act as key support level for Bank Nifty. A break below 42,800 can trigger a down move until 42,400 levels while a close above 43,000 is likely to garner buyers' interest again," said Ashwin Ramani.

Stocks To Buy Today

Executive Director of Choice Broking-Sumeet Bagadia recommended buying or selling the technical stocks listed below on Wednesday, 1st November 2023.

Trent

Buy TRENT in Cash @ Rs 2154.7, stop-loss: Rs 2060, target: Rs 2330

TRENT is currently trading at a price of Rs 2154.7. On the weekly chart, a price breakout of a rectangle pattern with good volume has occurred. The pattern suggests a target price of Rs 2330 in the short term. Buying on dips, particularly in the range of Rs 2125- Rs 2120, appears to be a favorable entry point, as Rs 2060 and Rs 2000 act as crucial support levels for the stock.

Furthermore, TRENT exhibits a promising technical outlook. It has successfully closed above its short-term, mid-term, and long-term moving averages, including the 50-day, 100-day, and 200-day Exponential Moving Averages (EMA). This underscores the stock's strength across various timeframes. The Relative Strength Index (RSI) currently stands at 77.56, signifying strong momentum with room for further price appreciation.

To effectively manage risk, it is advisable to implement a stop-loss (SL) at Rs 2060 to protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, TRENT appears to present an attractive buying opportunity for those aiming for a Rs 2330 price target, provided that prudent risk management measures are in place.

APOLLOTYRE

Buy APOLLOTYRE in Cash @ Rs 381.30, stop-loss: Rs 368, target: Rs 412

APOLLOTYRE is currently trading at a price of Rs 381.30 and is consolidating at support levels while forming higher lows, indicating strong upward momentum. The stock also formed a double bottom pattern and reversed from lower levels, suggesting a short-term target price of Rs 412.

Furthermore, APOLLOTYRE exhibits a promising technical outlook. It has successfully closed above its mid-term and long-term moving averages, including the 100-day and 200-day Exponential Moving Averages (EMA), highlighting the stock's strength across various timeframes. The Relative Strength Index (RSI) currently stands at 52, signifying growing momentum with room for further price appreciation.

Anticipating a potential breakthrough above the Rs 387 level, a notable uptick in APOLLOTYRE is expected, with a short-term target of Rs 412. This expected movement is supported by existing technical indicators and a solid bullish chart pattern base, making the mentioned price targets well within reach.

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.