Day Trading Guide: 3 Stocks To Buy Today On Wednesday, 27th Sept

Nifty 50 and Sensex opened flat on Wednesday while Gift Nifty fell down in the morning trades. Sensex began lower at 65929.40 level down by 16.02 points, while Nifty opened lower at 19664 level down by 0.70 points. Nifty Bank fell by 0.35 percent.

Market Outlook Today

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said "The triple whammy of rising dollar, spiking US bond yields and high Brent crude continues to impact Indian equity markets. The cues from the mother market US also are negative. It appears that the market is pricing in a 'higher for longer' rate regime in the US, which is not favourable to equity markets in the near-term."

"The 'buy on dips' texture of the market which took the Nifty beyond 20000 has now changed to 'sell on rallies'. Bulk of the selling has been coming from FIIs who have cumulatively sold in the cash market for Rs 21287 crores in September, so far. Since the dollar index is now above 106 and the US 10-year yield is strong around 4.55%, FIIs are likely to continue selling, rendering the market weak. Large banking stocks are likely to remain weak on FII selling. Long-term investors can use this weakness to buy high quality private banks and the leading PSU banks since the banking sector will continue to do well, going forward. Importantly, valuations in the banking segment are fair," added V K Vijayakumar.

Nifty Outlook Today

"Despite managing to hold well above the 50day SMA, more time being spent below previous days' congestion points takes the momentum off the upswing. We will now need a show of strength by an outright push above 19678, to continue playing upswings, with initial target at 19880. A breach of 19600 will lend momentum to the bearish bias that was seen bubbling yesterday, but an outright collapse is less expected, with near term supports seen at 19540 and 19420," said Anand James, Chief Market Strategist at Geojit Financial Services.

Stocks To Buy Today

AR Ramachandran from Tips2trades has suggested 3 stocks to buy today on 27th September.

Tata Steel

Tata Steel has turned bearish on the Daily charts with strong resistance at 132. A daily close below support of 124 could lead to a sharp fall till 115 in the near term.

PNB

PNB looks bullish but also overbought on the Daily charts with next resistance at 82.55. Investors should be booking profits at current levels as a daily close below support of 76 could lead to a target of 65 in the near term.

Cochin Shipyard

Cochin Shipyard is bullish on the Daily charts with strong support at 984. A daily close above resistance of 1101 could lead to a target of 1205 in the near term.