Day Trading Guide: Sumeet Bagadia Recommends 2 Stocks To Buy Today, 28th Sept

Following news that Nomura has raised its rating for the Indian Markets to "Overweight," benchmark indices ended the day on a positive note on Wednesday. Nifty gained 51 points to settle at 19,716 while the Sensex climbed by 173 points to close at 66,118. Coal India, ITC, Larsen & Toubro, Cipla, and LTIMindtree were among the top gainers on the Nifty, while Titan Company, Grasim Industries, Hero MotoCorp, SBI, and BPCL were the top losers. While oil and gas ended on a red note, the PSU Bank, Capital Goods, FMCG, Realty, and Healthcare indices were among the top gainers among sectors. The BSE midcap and smallcap indices both increased by 0.76% and 0.68% in the broader market.

Market Outlook Today

Talking on Nifty prediction today, Rupak De, Senior Technical analyst at LKP Securities said "The Nifty showed a strong recovery during the day, finding support at the 50EMA. The day concluded with the formation of a bullish engulfing pattern. On the upper side, resistance is situated at 19,750. A clear breakout is necessary to anticipate a substantial rally in the index. A decisive move beyond 19,750 could potentially push the index towards 19,900. On the downside, support is established at 19,600."

On the Bank Nifty outlook today, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "The BankNIFTY bulls displayed resilience by defending the key support level at 44,200, which coincided with the rising trendline support. However, the index is currently trading below its 20-day moving average (20DMA) positioned at 45,000. A decisive break above this level could trigger significant short-covering.Currently, the BankNIFTY is trading within a broad range of 44,200 to 45,000. A clear break on either side of this range will likely lead to trending moves. Nevertheless, within this range, the overall sentiment remains bullish, suggesting that a "buy on dip" approach may be favorable."

Stocks To Buy Today

Sumeet Bagadia - Executive Director of Choice Broking has picked up the below listed stocks with a buy rating for today's trading session.

Sun Pharma

Buy SUNPHARMA in cash @ Rs 1139.95, stop-loss: Rs 1115, target: Rs 1175

Sun Pharma, is presently trading at 1139.95 levels, having recently broken out from its previous range of 1110-1125 that persisted for a week. This breakout signifies a potential shift in the stock's price dynamics, making it an intriguing investment prospect.
In addition, the Relative Strength Index (RSI) is trending upward and appears to be on the verge of a positive crossover, indicating a potential increase in buying pressure. Moreover, Sun Pharma's price is currently positioned above its 20-50-100-200 Exponential Moving Averages (EMA), suggesting underlying strength in the stock.

The Bollinger Band is also displaying expansion, indicating an increase in volatility and potential upward momentum. Taking all these factors into consideration, it is our professional opinion that Sun Pharma presents a favourable buying opportunity at the current price of 1139.95, with a target price of 1175. It is important to note that our views would be invalidated if the stock were to fall below the 1115 level.

Eicher Motors

Buy EICHERMOT in cash @ Rs 3479.7, stop-loss: Rs 3380, target: Rs 3695

Based on the provided technical analysis, EICHERMOT on the daily chart has exhibited a breakout from a triangle pattern, accompanied by substantial trading volume. Following the breakout, the stock underwent a retest and subsequently formed a bullish hammer candlestick pattern. Additionally, EICHERMOT is presently trading above key Exponential Moving Averages (EMAs), specifically the 20-day, 50-day, 100-day, and 200-day EMAs, signalling robust bullish momentum and the potential for continued upward price movement.

Moreover, the Relative Strength Index (RSI) indicator is comfortably positioned near 60, indicating strength in the stock.
There exists a minor resistance level around 3590. A successful breach of this level by EICHERMOT could potentially drive the stock towards the 3695 level and potentially even higher. It is crucial to emphasize that the stock is presently trading above all significant moving averages, further affirming its underlying strength.

In light of this analysis, we recommend considering a long position in EICHERMOT at the current market price of 3479.7, with a medium-term target price of 3695. However, it is important to exercise caution, as a drop below 3695 would invalidate our analysis.

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.