Trading Bell: Stocks To Buy/Sell On 6th October As Guided By Sumeet Bagadia of Choice Broking

Due to strong global cues, benchmark indices closed the day higher on Thursday, snapping a two-day negative run. The Nifty was up 108.20 points or 0.56 percent at 19,544.30 at closure, and the Sensex was up 405.53 points or 0.62 percent at 65,631.57. Among the top 5 gainers on the Nifty were Bajaj Auto, Larsen & Toubro, Titan Company, M&M, and TCS, while losers comprised Power Grid Corporation, Hindalco Industries, Cipla, NTPC, and Nestle India. On the sectoral front, bank, auto, IT, media and consumer durables were the top contributors while metal, pharma, PSU Bank, and healthcare were the main draggers. On the broader market front, the BSE midcap index ended 10.64 points lower at 31,866.42, while smallcap index gained 0.6 percent.

Stock Market Outlook Today

Commenting on the outlook of Nifty today, Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said "The Nifty opened gap up and consolidated for most past of the day. It closed with gains of ~110 points. On the daily charts we can observe that Nifty has formed a Morning Star pattern which bullish implications.

The recent correction has halted around the 20-week moving average (19320) and now we expect a relief rally over the next few trading sessions. On the upside we expect the pullback till 19780 - 19800 which coincides with the 50% Fibonacci retracement level and the 20-day moving average. In terms of levels, 19460 - 19480 is the crucial support zone while 19670 - 19700 shall act as an immediate hurdle zone."

On the outlook of Bank Nifty he stated that "Bank Nifty opened gap up and thereafter consolidated for most part of the day. On the hourly momentum indicator we can observe positive divergence and crossover which is a bullish sign. We expect the Bank Nifty to provide a pullback till 44800 - 45000 from short-term perspective."

Stocks To Buy Today

Sumeet Bagadia, Executive Director at Choice Broking has suggested 2 stocks to buy or sell today on 6th October.

Indian Hotels

Buy INDHOTEL in cash @ Rs 417.50, stop-loss @ Rs 400, target @ Rs 450.

The technical analysis of INDHOTEL suggests a favourable outlook for the stock. It is currently trading at around 417.70 levels, with several positive indicators in play.

Firstly, there is a robust support zone established in the range of 400-405 levels. This zone aligns closely with the 50-day Exponential Moving Average (EMA), a crucial indicator often used to gauge the stock's trend. The presence of such strong support is encouraging for investors as it implies a level where buying interest could surge.
Secondly, INDHOTEL has breached a minor resistance level at 412, which also corresponds with the 20-day EMA. Overcoming resistance levels can signal a bullish sentiment, indicating that the stock may be poised for an upward move.

Furthermore, the stock is currently trading above all significant moving averages, indicating underlying strength and a potential bullish trend. The Relative Strength Index (RSI) at 55 levels suggests there is room for further upward movement before reaching overbought conditions.

Based on the above-mentioned analysis we recommend buying INDHOTEL at a CMP of 417.50 with an SL of 400 for the target of 450 levels.

Sun Tv Network

Buy SUNTV in cash @ Rs 634, stop-loss @ Rs 619, target @ Rs 656

Sun TV appears to be presenting a compelling opportunity in the current market scenario. Quoting at 634, the stock has recently exhibited a notable breakout in the daily timeframe, further reinforced by robust trading volumes. Additionally, it has successfully closed above its short, mid, and long-term moving averages, namely the 20, 50, 100, and 200-day Exponential Moving Averages (EMA), signalling a positive trend momentum.

The Relative Strength Index (RSI) at 65 indicates a healthy and sustainable level of buying interest. Furthermore, the Average Directional Index (ADX) is currently registering a formidable reading of 29, underscoring a strong trend direction. With these technical indicators aligning favourably, a prudent entry at 634 with a stop-loss set at 619 presents an attractive risk-reward profile.

The target of 656 appears to be a reasonable objective, considering the stock's recent performance and the supportive technical backdrop.

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.