Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Wednesday, 8th Nov

Following three days of gains, markets took a break and ended on a flat note on Tuesday wrapped up with unfavourable global cues. The Nifty plummeted 5.10 points or 0.03 per cent to close at 19,406.70, while the Sensex dropped 16.29 points, or 0.03 per cent to settle at 64,942.40. On the Nifty, some of the major losers were Hero MotoCorp, Reliance Industries, Bajaj Finance, JSW Steel, and Divis Labs; winners were Sun Pharma, BPCL, NTPC, IndusInd Bank, and Dr. Reddy's Labs. The BSE small cap and mid cap indices finished the day up by 0.38% and 0.53%, respectively, on the broader market front.

Market Outlook

Aditya Gaggar Director of Progressive Shares said, "The rangebound session comes to an end at 19,406.70 with a minuscule loss of 5.05 points. Among the sectors, Pharma was the top performer by ending the day with gains of 1.32% while profit booking pressure dragged the Realty segment lower. Stock-specific action was witnessed in the IT and Metal space. Mid and Smallcaps extended their journey towards the north and outperformed the Frontline Index.

On the daily chart, the Index has made an Inside bar candlestick pattern which generally represents a period of consolidation or indecision in the markets. A convincing close above 19,420 will open the doors for 19,560 while a downside is protected at 19,350. BankNifty has given a compelling close above its critical hurdle of 43,600 as well as its 21DMA which indicates a continuation of the current up move and is likely to soar higher towards 44,000 while a level of 43,300 will act as a strong support."

Nifty Outlook Today

Rupak De, Senior Technical analyst at LKP Securities said, "Nifty remained volatile within a narrow range as traders remained uncertain ahead of the Fed Chair's scheduled speech tomorrow. On the daily chart, Nifty encountered resistance at the 21EMA and closed just below it. If it manages to surpass the 21EMA, which is currently around 19,414, it could potentially head towards the 19,650-19,700 range. On the downside, support is situated at 19,300."

Bank Nifty Outlook

Rupak De said "Bank Nifty exhibited volatility throughout the day before finishing with strength. On the daily chart, the index has closed above the 21EMA for the first time in several days. The sentiment appears to be positive at this point, and the setup seems favorable for a robust upward movement in the index. In the near term, it may potentially move towards 44,500 on the upside, with support situated at 43,300 on the lower end."

Stocks To Buy Today

Executive Director of Choice Broking Sumeet Bagadia has recommended two stocks to trade today on November 8.

Cipla

Buy CIPLA in cash @ Rs 1216.45, stop-loss: Rs 1190, target: Rs 1260

CIPLA is presently trading at 1216.45 levels. On the daily chart, the stock has exhibited a significant breakout from a descending trend line, signifying a resurgence of strength in its price action.

A robust support level is situated at 1193 levels, which conveniently aligns with the 50-Day Exponential Moving Average (EMA). This confluence of support factors enhances the stock's stability and resilience.

Furthermore, CIPLA is trading above all the vital moving averages, which underscores its overall bullish posture and trend.

The Relative Strength Index (RSI), a momentum indicator, is hovering around 58 levels. This RSI reading suggests that the stock possesses considerable strength without being excessively overbought. It signifies a healthy and sustainable uptrend.

A minor resistance level is noticeable in the vicinity of 1225 levels. Should the stock successfully surpass this resistance, it has the potential to advance towards the target level of 1260. This could present a favourable trading opportunity for investors and traders alike.

Based on the above analysis we recommend buying CIPLA at CMP of 1216.45 with a SL of 1190 for the target of 1260.

Usha Martin

Buy USHAMART in cash @ Rs 309, stop-loss: Rs 294, target: Rs 340

USHAMART, currently trading at Rs 309, has recently reversed from the bottom, forming new lower highs with significant volumes, indicating bullish momentum in the stock. Additionally, USHAMART is trading above critical Exponential Moving Averages (EMAs), including the 50-day, 100-day, and 200-day EMAs, highlighting its bullish momentum and suggesting the potential for further upward price movement.

The Relative Strength Index (RSI) is currently at 49.6 and trending upwards, indicating an increase in buying momentum. Furthermore, the Stochastic Relative Strength Index (Stoch RSI) is displaying a positive crossover. This combination of technical factors suggests that USHAMART may have the potential to reach a target price of Rs 340 in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 294 to protect your investment in case the market takes an unexpected turn. Overall, considering the technical analysis and current market conditions, USHAMART appears to be a promising buying opportunity for those aiming for a Rs 340 price level, provided 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.