Diwali Stock Picks: Shubh Trading Guide By Sumeet Bagadia To Light Up Your Portfolio

The trading session started off weakly on Wednesday, but values quickly recovered thanks to the previous session's momentum. Markets fell for the rest of the day after failing to overcome the formidable resistance at 24500, despite the seeming likelihood of an upward follow-through. Ultimately, NIFTY ended the day 0.5 per cent down, well shy of the 24350 level. Bulls had a poor session as equities erased Tuesday's gains, shattering their potential of higher following Tuesday's surge. The one bright spot was that the market as a whole showed tenacity with an advance-decline ratio that favoured the bulls, despite difficulties in the major indices. Because of the pressure on markets and their tendency to be volatile due to the uncertainty surrounding the US presidential election, which is scheduled for November 5th, traders are recommended to concentrate on stock-specific opportunities and use caution while making decisions.

Nifty Outlook

"Nifty remained volatile throughout the day, trading within a range of 24,300 to 24,500. On the hourly chart, Nifty encountered resistance around the 50 EMA, leading to a correction toward 24,300. Sentiment may stay sideways as long as Nifty remains within the range of 24,250 to 24,500. A decisive breakout from this range is likely to give direction to Nifty. On the lower end, supports are placed at 24,250 and 24,000, while resistances are seen at 24,500 and 24,750," said Rupak De, Senior Technical Analyst, LKP Securities.

Bank Nifty Outlook

"Looking forward, Bank Nifty has the potential to reach upside targets of 55,000-58,000 by Diwali 2025, supported by strong fundamentals in the banking sector. A "buy on dips" strategy is recommended, as the index is well-positioned for continued growth in the medium to long term," said Choice Broking.

Stocks To Buy Today

On Thursday, October 31, Choice Broking's executive director, Sumeet Bagadia, recommended buying the below two stocks on the occasssion of Diwali 2024.

Wipro

Buy in WIPRO Cash @ Rs 565.25, stop-loss @ Rs 546, Target @ Rs 605

WIPRO is currently trading near at Rs 565.25 . The stock is on the verge of breaking out of parallel channel pattern on the daily chart, accompanied by a significant increase in trading volume, which highlights strong buying interest. If WIPRO sustains above the Rs 580 level, it is well-positioned to move higher, with a potential target price of Rs 605.
The Relative Strength Index (RSI) currently stands at 64.26 and is trending upward, suggesting increasing buying strength. Furthermore, the stock is trading above its key moving averages, including the 20-day, 50-day, and 200-day EMAs, which further confirms the bullish sentiment in the market.

In light of the current technical structure and supporting indicators, such as the rising RSI and favorable moving averages, WIPRO presents a compelling buying opportunity at Rs 565.25. To manage risk effectively, a stop loss should be placed at Rs 546, while aiming for a target of Rs 605. This setup offers an attractive risk-reward ratio in line with the stock's ongoing bullish momentum.

Caplin Point Laboratories

Buy CAPLIPOINT in Cash @ Rs 1980.5, Stop-loss @ Rs 1911, Target @ Rs 2119

CAPLIPOINT is currently trading at Rs 1,980.5 and appears to be on the verge of breaking out of a descending triangle pattern. Additionally, it has shown a reversal from its demand zones. This bullish outlook is reinforced by a significant increase in trading volumes. If CAPLIPOINT sustains above the key resistance level of Rs 2000, it could target Rs 2119 in the short term.

The Relative Strength Index (RSI) is at 57.81 and is trending upward, suggesting increasing buying strength. Furthermore, the stock is trading above its key moving averages - the 20-day, 50-day, and 200-day EMAs - which further confirms the bullish sentiment in the market.

In summary, based on the technical analysis and current momentum, CAPLIPOINT presents a viable buying opportunity with a target of Rs 2,119. It is crucial to implement proper risk management by placing a stop loss at Rs 1,911 to safeguard your position.

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.