Day Trading Guide: 2 Stock Picks By Sumeet Bagadia For Today, 27th Sept

On September 26, benchmark indices came to an end on a flat note amid mixed cues. The Nifty was down 9.80 points or 0.05 percent at 19,664.70 at closure, and the Sensex was down 78.22 points or 0.12 percent at 65,945.47. In the Nifty pack, the top 5 gainers were Eicher Motors, Hero Motocorp, Nestle India, ONGC and Bajaj Auto whereas the top 5 losers were Cipla, Tech Mahindra, IndusInd Bank, Adani Enterprises and Asian Paints. Despite gains in FMCG, real estate, and metal sectors, the market was driven down by banking, IT, media, and pharmaceutical firms. The Nifty Smallcap 100 climbed by 0.6% while the Nifty Midcap 100 fell by 0.2%. On the day in question, India's volatility index soared above 2.6%.

Nifty Outlook Today

"On the daily charts we can observe that the Nifty consolidated within the range (19734 - 19601) of the previous trading session and thus formed an Inside bar pattern which makes the extremes of the range crucial levels to watch out for. A breach of this range on either side shall lead to a move in that direction. We are expecting this range to break on the upside. A pullback is expected till 19773 - 19800 where 40 hourly moving averages are placed and above that it can stretch higher till 19880 - 19900 which is the gap area formed on 21st September. On the flipside, a breach below 19600 can lead to a fall till 19440. In terms of levels, 19600 - 19620 is the crucial support zone while 19780 - 19800 shall act as an immediate hurdle zone," said Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas.

Bank Nifty Outlook Today

"Bank Nifty also consolidated within a narrow range today and closed in the red down 140 points. Considering the oversold nature of the Bank Nifty we are expecting a pullback over the next few trading sessions. On the upside the pullback is likely towards 45000 - 45200. On the hourly charts the momentum indicator has a positive crossover which is a buy signal and the positive divergence suggests that the momentum on the downside is weakening," said Jatin Gedia.

Stocks To Buy Today

Sumeet Bagadia - Executive Director of Choice Broking has recommended 2 stocks to buy or sell on Wednesday, 27th September.

Divi's Laboratories

Buy DIVISLAB in cash @ Rs 3753.80, stop-loss: Rs 3680, target: Rs 3910

Based on a comprehensive technical analysis of DIVISLAB, it is currently trading at 3753.80, having found substantial support at the 3680 level and maintaining this position for a week. The stock is demonstrating strength by trading above key Exponential Moving Averages (EMAs) including the 20, 50, and 200. This signifies a positive trend and suggests a favourable outlook.

Furthermore, the Relative Strength Index (RSI) stands at 54, indicating an upward trend in momentum. This aligns with the overall bullish sentiment observed in the stock's recent performance. Given these indicators, it is advisable to consider DIVISLAB as a potential buy opportunity, with an anticipated target price of 3910. To manage risk, a stop-loss order should be placed at 3680, providing a prudent level of protection for the investment.

Jubilant FoodWorks

Buy JUBLFOOD in cash @ Rs 545.80, stop-loss: Rs 526, target: Rs 580.

The stock is trading at 545.80 levels. The stock has cleared the 542 levels on a closing basis with decent volumes indicating strength. Currently stock is moving above 20, 50 and 200 Day EMA levels. The stock has a small resistance close to 549 levels. Once stock crosses the above-mentioned resistance stock can move towards 580 levels and above. Any dip in the stock can be a buying opportunity. Momentum indicator RSI is trading around 63 levels indicating strength.

With a medium-term outlook, one can buy JUBLFOOD at a CMP of 545.80 with an SL of 526 for a target price of 580.

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.