Home / Markets / Stock Markets /  Rajesh Palviya of Axis Securities recommends 3 stocks to buy today — 28 Sept

Stock market today: Following weakness in global equity markets, Dalal Street ended in red zone on Tuesday. Among sectors oil & gas, telecom and IT were the main gainers while power, metals and banks were the main losers. However, small-cap index outperformed key benchmark indices after logging an intraday gain of around 0.49 per cent. Rajesh Palviya, VP - Technical and Derivative Research at Axis Securities believes that both Nifty and Bank Nifty index is indicating negative bias in short term. On buy or sell stocks for today, Rajesh Palviya of Axis Securities recommended 3 stocks to buy today — Indian Hotels, Cipla and MindTree.

Day trading strategies for stock market today

Speaking on Nifty 50 outlook, Rajesh Palviya said, "On the daily chart, the index has formed a small Bearish candle with shadows on either side, indicating indecisiveness amongst participants regarding the direction. The index is holding 200 DMA from the last two trading sessions placing around the 16900 level, which is a crucial level to watch out for. The index is moving in a Lower Top and Lower Bottom formation on the daily chart, indicating negative bias, in a short term. The chart pattern suggests that if the Nifty crosses and sustains above the 17150 level, it would witness buying, which would lead the index towards 17300-17500 levels. Important support for the day is around 16900. However, if the index sustains below 16900, then it may witness profit booking, which would take the index towards 16800-16600 levels."

Rajesh Palviya of Axis Securities went on to add that Nifty is trading below 20 and 50-day SMA, which indicates negative bias in the short term. Nifty continues to remain in an uptrend for the short term, so buying on dips continues to be our preferred strategy.

"The daily strength indicator RSI is moving downwards and is quoting below its reference line, indicating negative bias," Axis Securities expert said.

On Bank Nifty outlook, Rajesh Palviya said, "On the daily chart, the index has formed a small Bearish candle with shadows on either side, indicating indecisiveness amongst participants regarding the direction. The index continues to move in a Lower Top and Lower Bottom formation on the daily chart, indicating negative bias. The chart pattern suggests that if Bank Nifty crosses and sustains above the 38600 level, it would witness buying, which would lead the index towards 38900-39200 levels. Important support for the day is around 38200. However, if the index sustains below 38200, it may witness profit booking, which would take the index towards 38000-37800 levels."

The Axis Securities analyst went on to add that Bank Nifty is trading below 20 and 50-day SMA, which indicates negative bias in the short term. Bank Nifty continues to remain in an uptrend in the medium and long term, so buying on dips continues to be our preferred strategy.

"The daily and weekly strength indicator RSI is moving downwards and is quoting below its reference line, indicating negative bias, in a short term," Rajesh Palviya concluded.

Rajesh Palviya's stock recommendations

As mentioned above, Rajesh Palviya has recommended 3 stocks to buy today — Indian Hotels, Cipla and MindTree. Here we list out full details in regard to these buy or sell stocks for today's session:

1] Indian Hotels: Buy at 329, target 345 to 350, stop loss 322;

2] Cipla: Buy at 1102, target 1140 to 1150, stop loss 1075; and

3] MindTree: Buy at 3258, target 3340, stop loss 3210.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

ABOUT THE AUTHOR

Asit Manohar

Chief Content Producer at Live Mint Digital Team
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