Day Trading Guide For Monday: Stocks To Buy As Recommended By Sumeet Bagadia of Choice Broking

Benchmark indices extended their winning run on Friday as the Nifty finished up 89 points at 20,192 and the Sensex closed up 319.63 points, or 0.47%, at 67,838.63. Bajaj Auto, Grasim Industries, M&M, Hero MotoCorp, and Bharti Airtel were the top gainers, while BPCL, Asian Paints, HUL, Jio Financial, and Tata Consumer Products were the top losers on the Nifty pack. On the sectoral front FMCG, oil & gas, power and realty ended in red, while auto, bank, pharma, and IT ended on a green note. Broader market BSE midcap and Smallcap indices ended 0.094% and 0.27% higher respectively.

Market Outlook On Monday

Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas believes that "On the daily charts we can observe that the up move in Nifty has slowed down since the last three trading sessions. The slope of ascend has been shallow. The reason we attribute to this price action is that it has reached the zone of 20100 - 20200 where the weekly upper Bollinger band is placed which results in subdued price action.

The hourly momentum indicator though having a positive crossover is showing signs of negative divergence which should not be underestimated. Overall, the short-term outlook is positive, however considering the sharp run-up since the last three trading sessions we should have a cautious stance and be prepared for a correction. In terms of levels, 20050 - 20000 is the crucial support zone while 20200 - 20250 shall act as an immediate hurdle zone."

On the outlook of Bank Nifty, Jatin Gedia said "Bank Nifty has also been trading with a positive bias. It has now reached the zone of 46370 - 46400 where resistance in the form of the weekly upper Bollinger band and the previous swing high is placed. Thus, after rallying for three weeks there is a high probability of a consolidation. Crucial support is placed in the range 45970 - 45670 and crucial resistance is placed at 46300 - 46400."

Stocks To Buy On Monday

Sumeet Bagadia, Executive Director of Choice Broking has recommended the below stocks to buy on 18th September 2023 (Monday).

Escorts Kubota

Buy ESCORTS in cash @ Rs 3151, stop-loss: Rs 3086, target: Rs 3268

The current market conditions for Escorts stock appear favorable, with several positive indicators suggesting a potential buying opportunity.

Escorts is currently trading at 3151 and is exhibiting a strong upward trend. Moreover, it is trading above its key moving averages, including the 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained bullish momentum.

Furthermore, the Relative Strength Index (RSI) stands at 65, which suggests that the stock is in a moderately overbought condition but not excessively so. An RSI value of 70 or higher typically indicates overbought conditions, so the current level of 65 may still leave room for potential upside.

However, while the current conditions appear promising for a buy at 3151, market dynamics can change rapidly so keep a SL at 3086.

Colgate-Palmolive

COLPAL has revealed a gradual upward movement in the larger time frame after decent consolidation. ADX remains at a level of 24 indicating that the stock currently remains moderately bullish. RSI is positively skewed, indicating favorable price action among investors potentially supporting the continuation of the upward trend. Furthermore, the price is sustaining above 20 Daily Moving Average as well.

One can initiate a long position at cmp 1985.8 for the target price of 2050. SL can be kept as 1955.

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.