Day Trading Guide For Today: 2 Stocks To Buy As Recommended By Sumeet Bagadia of Choice Broking On 5th Sept

On Monday, the Nifty 50 rose by 93.50 points or 0.48% to close at 19,528.80, while the Sensex climbed by 240.98 points or 0.37% ending at 65,628.14. To reach 44,578.30, Bank Nifty climbed by 142.20 points. The BSE Smallcap index grew by 313.61 points, while the BSE Midcap index gained by 300.44 points. IT stocks surged by 553.63 points on the BSE, following metal stocks. The top Nifty gainers were Coal India, Wipro, HCL Technologies, UltraTech Cement, and Tata Steel, while losers on the index were Axis Bank, M&M, Nestle India, ITC, and Asian Paints.

Market Outlook

Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said "The Nifty opened gap up and consolidated for most part of the day. It closed with gains of ~93 points. On the daily charts we can observe that the Nifty is stretching on the upside. The intraday dip was bought into which indicates buying interest at supports and also suggests bullishness. The daily momentum indicator has a positive crossover which is a buy signal. We believe that the Nifty is in the process of retracing the fall it has witnessed from 19992 - 19223 and hence the pullback is likely to last over the next few trading sessions. On the upside we expect the Nifty to target levels of 19650. In terms of levels, Crucial support zone is placed at 19420 - 19360 and immediate hurdle is placed at 19650 - 19700."

On the outlook of Bank Nifty, Jatin Gedia said "Bank Nifty has also witnessed follow through buying interest from the previous trading session. It has managed to close above the 20- and 40-day moving averages which is a sign of strength. We expect the Index to continue its pullback and towards the daily upper Bollinger band placed around 45000. The daily momentum indicator has a positive crossover which is a buy signal. Thus, both price and momentum indicator is suggesting that the positive momentum is likely to continue."

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy today i.e. Tuesday, 5th September.

HCL Tech

Buy HCL Tech in cash @ Rs 1232, Stop-loss @ Rs 1194, Target @ Rs 1283

HCL Technologies (HCL) currently stands at a trading price of 1232, and recent technical developments suggest a promising investment opportunity. Notably, the stock has achieved a significant breakout at 1194, maintaining a closing price above this crucial level. This breakout indicates a potential shift in market sentiment towards a bullish stance.

One key indicator supporting this positive outlook is the Relative Strength Index (RSI), currently registering at 71 and trending upwards. This upward momentum in the RSI suggests increasing buying interest and underlying strength in the stock.

Furthermore, HCL is trading above multiple key moving averages, including the 20, 50, 100, and 200-day exponential moving averages (EMA). This confluence of moving averages signifies strong technical support and reinforces the bullish sentiment surrounding the stock.

Considering these factors, HCL appears to be an attractive buy at its current level of 1232, with a target price of 1283 in mind. To manage risk effectively, a stop-loss (SL) can be set at 1194, which aligns with the breakout level. This prudent risk management approach ensures a defined exit strategy in case the trade does not play out as anticipated.

NLC India

Buy NLC India in cash @ Rs 142, Stop-loss @ Rs 138, Target @ Rs 151

NLC India, presently trading at 142, exhibits promising technical signals that make it an attractive investment prospect. The stock has recently achieved a notable breakout at the 138 level and has successfully maintained a closing price above this critical threshold, signaling a potential shift in market sentiment towards a bullish trajectory.

An important supporting factor for this optimistic outlook is the Relative Strength Index (RSI), currently at 73 and showing an upward trend. This upward movement in the RSI underscores growing buying momentum and underlying strength in the stock.
Furthermore, NLC India is trading above several key moving averages, including the 20, 50, 100, and 200-day exponential moving averages (EMA). This confluence of moving averages not only offers strong technical support but also reinforces the positive sentiment surrounding the stock.

Considering these compelling technical factors, NLC India presents a compelling buying opportunity at its current price of 142, with a target price of 151 in view. To manage risk effectively, a prudent stop-loss (SL) can be established at 138, aligning with the breakout level. This risk management strategy ensures a predefined exit plan should the trade not unfold as anticipated.

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.