Home / Markets / Stock Markets /  Rajesh Palviya of Axis Securities recommends 3 stocks to buy today — 30 Sept

On account of weak global markets and slowdown concern, Indian stock market finished in negative territory on seventh day in a row. The 50-stock index Nifty went off 40 points and closed at 16,818 while BSE Sensex plunged 188 points and ended at 56,409 levels. Nifty Bank index corrected 112 points and finished at 37,647 mark. However, mid-cap and small-cap indices gained 0.31 per cent and 0.63 per cent respectively and managed to beat the key benchmark indices on previous session.

Rajesh Palviya's stock recommendations

Rajesh Palviya of Axis Securities believes that Indian stock market is moving in a Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The Axis Securities expert recommended three stocks to buy today and those three shares are Abbott India, Poonawalla Fincorp and Dabur.

Rajesh Palviya said that the trend deciding level for the day is 16,880. If Nifty trades above this level, we may witness a further rally up to 16965-17115-17205 levels. However, if Nifty trades below 16,880 levels, we may see some profit booking initiating in the market, which may correct up to 16730-16640-16490 levels.

Likewise, the trend deciding level for the day is 37825. If Bank Nifty trades above this level, we may witness a further rally up to 38110-38570-38855 levels. However, if Bank Nifty trades below 37825 levels, we may see some profit booking initiating in the market, which may correct up to 37360-37075-36615 levels.

Day trading guide for today

Speaking on day trading strategies, Rajesh Palviya of Axis Securities said, "On the daily chart, the index has formed a bearish candle that engulfed the previous day's candle, as the index faced resistance at 200 DMA and the previous day’s high. The index is approaching a bullish gap area between 16746-16653 which may act as crucial support. The index is moving in a Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The chart pattern suggests that if the Nifty crosses and sustains above the 17000 level, it would witness buying, leading the index towards 17150-17300 levels. Important support for the day is around 16750. However, if the index sustains below 16750, it may witness profit booking, which would take the index towards 16600-16500 levels."

Rajesh Palviya said that Nifty is trading below its key averages 20, 50, and 200-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," he said.

On Bank Nifty outlook, the Axis Securities expert 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 moving 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 37900 level, it would witness buying, which would lead the index towards 38100-38300 levels. Important support for the day is around 37500. However, if the index sustains below 37500, it may witness profit booking, which would take the index towards 37300-37100 levels."

Palviya said that Bank Nifty is trading below 20, 50-day SMA indicating negative bias in the short to medium 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.

"he daily and weekly strength indicator RSI is moving downwards and is quoting below its reference line, indicating negative bias," Palviya said.

Buy or sell stocks for today

On day trading stocks that traders can look at today, Rajesh Palviya of Axis Securities recommended three intraday stocks for today. Here we list out details below:

1] Abbott India: Buy at 19190, target 19550 to 19700, stop loss 18850;

2] Poonawalla Fincorp: Buy at 293, target 315, stop loss 565; and

3] Dabur: Buy at 577, target 600, stop loss 565.

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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