HDFC Bank Or MCX: Sumeet Bagadia Suggests 2 Stocks To Buy Today On 11th October

The Indian benchmark indices began the day higher, following global trends. Nifty experienced profit-taking in the second half of the day after beginning the day on a bullish note and moving in a narrow range. The index closed at 24,998 on a flat note on Thursday. Even though there was turbulence, Bank Nifty started the day strongly and continued to rise, completing the day at 51,531. There has been a drop in market volatility as seen by the 4.65% decline in the volatility index, or INDIA VIX, which settled at 13.47.

Nifty Outlook

"Technically, on the daily chart, the index formed a small red candle, indicating selling pressure at higher levels. However, the index is still holding above the low of the insider bar candle. Thus, as long as the index holds above the low of 24,690, levels of 25,150-25,350 could be possible. However, a close below 24,690 could lead to a fresh breakdown," said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bank Nifty Outlook

"Technically, on the daily chart, the index formed a big green candle, indicating strength. However, the index is facing resistance near the 51,700-51,800 levels. If the index sustains above 51,800, Bank Nifty could test levels of 52,500-52,800," commented Hrishikesh Yedve.

Stocks To Buy Today

Executive director of Choice Broking Sumeet Bagadia recommended buying two stocks on Friday, October 11, although the Nifty is still trading below the 50 DMA, which is in line with the 50% Fibonacci retracement level. This indicates that the market may be range-bound.

HDFC Bank

Buy HDFCBANK in Cash @ Rs 1662.4, stop-loss @ Rs 1605, target @ Rs 1779

HDFC Bank is currently trading at Rs 1662.4 and has shown a strong rebound from the support zone of Rs 1650, forming a bullish candle on the daily chart. This indicates the formation of a bullish reversal pattern, with increasing trading volumes further confirming a positive outlook. If the stock sustains above the critical level of Rs 1670, it is likely to continue its upward momentum towards the target price of Rs 1779.

The Relative Strength Index (RSI) is at 46.4, reflecting a sideways trend but with potential for growth. Additionally, HDFC Bank is trading above its 200-day Exponential Moving Average (EMA), reinforcing the bullish sentiment.

Considering the current technical setup and momentum, HDFC Bank presents a favorable buying opportunity with a target of Rs 1779. To manage risk, a stop loss should be placed at Rs 1605, which helps protect against potential downside risk due to market fluctuations. This trade setup offers an attractive risk-reward ratio, making it a solid opportunity for traders looking to capitalize on the bullish trend. Proper risk management is crucial to guard against unexpected market volatility.

MCX

Buy MCX in Cash @6193.15 SL @ 5976 TGT @ 6627

MCX is currently trading at Rs 6193.15, having recently broken out of its support zone and consolidation phase, which signals a strong upward momentum. This breakout is supported by a notable surge in trading volumes, indicating increased buying interest from investors. Technically, the stock appears well-positioned to reach a target of Rs 6627 in the short term, as its current price structure suggests further upside potential.

The Relative Strength Index (RSI) stands at 76.99, which indicates a strong bullish trend. Additionally, MCX is trading comfortably above its key 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs), reinforcing the prevailing positive sentiment in the market. This favorable technical setup further strengthens the case for additional gains in the stock.

If MCX sustains above the crucial resistance level of Rs 6200, it presents a solid opportunity for long positions. Traders may consider entering at the current price with a target of Rs 6627. To manage risk effectively, a stop loss should be placed at Rs 5976 to protect against potential short-term market fluctuations. While the overall outlook remains positive, caution is advised due to potential short-term volatility.

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.