Trading Bell: 2 Stocks To Buy Today As Guided By Sumeet Bagadia of Choice Broking

After major IT companies revealed lower-than-expected quarterly earnings for Q2FY24, Indian benchmark indices wrapped up in red on Thursday. The Nifty was down 17.30 points or 0.09 per cent at 19,794 at closure, and the Sensex was down 64.66 points or 0.10 per cent at 66,408.39.

BPCL, Coal India, Maruti Suzuki, Grasim Industries, and Power Grid Corporation were among the top gainers on the Nifty, while Tech Mahindra, Apollo Hospitals, TCS, HCL Technologies, and Infosys were among the top 5 losers. In the broader market, the BSE midcap index rallied 0.3 per cent and the smallcap index climbed 0.6 per cent. On the sectoral front, all sectors ended in green except Nifty IT, NIFTY PSU Bank, Nifty Financial Services, and Nifty Realty.

Nifty Outlook Today

Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said, "The Nifty opened on a flat note and consolidated for most part of the day. It closed marginally in the red down ~17 points. On the daily charts we can observe that the Nifty has been consolidating after a sharp rally of ~350 points in the previous couple of trading sessions.

This consolidation is a healthy sign and shall set the floor for the next leg of upmove. The hourly momentum indicator has a negative crossover which can lead to more consolidation and incase of a dip towards 19750 - 19730 zone it should be used as a buying opportunity. On the downside the gap area formed in the range 19718 - 19757 is likely to act as a short-term support and on the upside the rally has potential to extend till 19884 - 20030."

Rupak De, Senior Technical analyst at LKP Securities said, "Nifty remained in a range-bound pattern after a flat opening. Throughout the session, Nifty barely moved outside the previous day's range. Looking ahead, we can expect the market to continue this range-bound movement until Nifty makes a decisive breakout either above 19850 or below 19750. A clear breakout above 19850, it could potentially propel Nifty towards the 20000 level."

Bank Nifty Outlook Today

Jatin Gedia said, "Bank Nifty also consolidated within a range and formed an Inside bar pattern. The hourly Bollinger bands are contracting and hourly momentum indicator has a negative crossover and is still far away from the equilibrium line indicating that consolidation is still not complete and can continue over the next few trading sessions Dips towards 44400 - 44300 zone should be used as a buying opportunity. Once this consolidation matures we expect the positive momentum to resume on the upside till 45050 - 45350 which coincides with the 50% and 61.82% fibonacci retracement level of the fall."

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "The Bank Nifty index continued its consolidation phase, encountering resistance at 44,700 and support at 44,400. The overall market sentiment remains bullish, and any dips should be considered as opportunities to initiate fresh long positions. The target is 45000, where the highest open interest exists on the call side. A break above 44,700 is expected to accelerate upward momentum, driven by fresh short-covering activities."

Stocks To Buy Today

Sumeet Bagadia, Executive Director at Choice Broking has suggested the below stocks to buy or sell on Friday, 13th October 2023.

Grasim Industries

Buy GRASIM in cash @ Rs 2001, stop-loss @ Rs 1955, target: Rs 2097

Grasim Industries Limited (GRASIM) exhibits a compelling technical setup in the daily time frame, showcasing signs of a potential upward momentum. The stock has recently witnessed a breakout from a falling wedge pattern, indicating a shift in market sentiment towards bullish tendencies. Furthermore, it has demonstrated commendable resilience by finding solid support along an established trendline. Notably, GRASIM has surpassed critical moving averages, including the 20, 50, 100, and 200-day Exponential Moving Averages (EMA), underscoring the strength of its current uptrend.

The Relative Strength Index (RSI) stands at a healthy 66, portraying an upward trajectory, which suggests increasing buying interest and potential room for further price appreciation. Moreover, the Average Directional Index (ADX) reading of 34 indicates a robust trend in place, signifying a sustainable and well-defined upward movement.
Considering these technical indicators, a prudent entry point for GRASIM would be at 2001, with a strategically placed stop loss at 1955 to mitigate potential downside risks. Anticipated price targets lie at 2097, reflecting a calculated risk-reward profile. Traders and investors may find this opportunity compelling, as GRASIM appears poised for a potential bullish phase, supported by the robust technical backdrop.

HUL

Buy HINDUNILVR in cash @ Rs 2557, stop-loss @ Rs 2500, target: Rs 2665

HINDUNILVR has bounced back from the support level of 2500 which is also close to its 20 Day EMA levels. Stock is currently trading around 2557 levels. The stock is also trading above all its important moving averages indicating strength. The momentum indicator RSI is currently at 60 levels. A smaller resistance is witnessed around 2592 levels, once stock crosses the mentioned resistance it can lead towards the target of 2665 and above.
Based on the above analysis we expect HINDUNILVR to move higher towards 2665 and hence we recommend buying HINDUNILVR at a CMP of 2557 with a SL of 2500.

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.