Home / Markets / Stock Markets /  Rajesh Palviya of Axis Securities recommends 3 stocks to buy today — 4th Oct

After one day relief rally on Friday, Indian stock market continued to trade weak on Monday. Nifty tumbled 207 points and closed below the crucial 16,900 mark while Sensex slumped 638 points and ended at 56,788 levels. Bank Nifty index nosedived 602 points and finished at 38,029 mark. Advance decline ratio closed in negative territory at 0.53:1.

Rajesh Palviya stock recommendations

Rajesh Palviya, VP - Technical and Derivative Research, Axis Securities believes that Nifty and Bank Nifty indices are showing weakness on chart pattern and one should continue to focus on specific stocks till more clarity comes. Rajesh Palviya of Axis Securities recommended three stocks to buy today and those three shares are Cipla, Indian Hotels and Bluestar.

Rajesh Palviya of Axis Securities said that trend deciding level for NSE Nifty today is 16955. If Nifty trades above this level, we may witness a further rally up to 17050-17210-17310 levels. However, if Nifty trades below 16955 levels, we may see some profit booking initiating in the market, which may correct up to 16790-16695-16530 levels.

On Bank Nifty index, Axis Securities expert said that trend deciding level for the day is 38210. If Bank Nifty trades above this level, we may witness a further rally up to 38460-38890-39140 levels. However, if Bank Nifty trades below 38210 levels, we may see some profit booking initiating in the market, which may correct up to 37780-37535-37105 levels.

Trade setup for Tuesday

On Nifty technical outlook, Rajesh Palviya of Axis Securities said, "The index has formed a sizable bearish candle and closed below 200DMA on the daily chart, indicating further weakness. The index is moving in a Lower Top and Lower Bottom formation on the daily chart showing a negative bias. The chart pattern suggests that if the Nifty crosses and sustains above the 17000 level, it will witness buying that may lead the index towards 17100-17200 levels."

Palviya went on to add that crucial support for the day is around 16800. However, if the index sustains below 16800, it may witness profit booking that would take it towards 16700-16600 levels. Nifty is trading below its 20, 50, and 200-day SMA, pointing to a negative bias in the short term. Nifty will remain in an uptrend for the medium 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 in the short term.

On Bank Nifty outlook, Rajesh Palviya said, "The index has formed a bearish candle with a long upper shadow on the daily chart, indicating selling pressure and resistance at higher levels. The index is moving in a Lower Top and Lower Bottom formation on the daily chart showcasing negative bias. The chart pattern suggests that if Bank Nifty crosses and sustains above the 38150 level, it would witness buying that may lead the index towards 38300-38500 levels. The crucial support for the day is around 37800. However, if the index sustains below 37800, it may witness profit booking that would take it towards 37650-35500 levels."

Rajesh Palviya went on to add that Bank Nifty is trading below 20, 50-day SMA indicating negative bias in the short term. Bank Nifty remains in an uptrend in the medium and long term, so buying on dips is our preferred strategy. The daily strength indicator RSI is moving downwards and is quoting below its reference line, indicating negative bias.

Buy or sell stocks for today

As mentioned above, Rajesh Palviya of Axis Securities has recommended three stocks to buy today. Those three stocks are as follows:

1] Cipla: Buy at 1128, target 1180 to 2000, stop loss 1100;

2] Indian Hotels Company: Buy at 338, target 350, stop loss 330; and

3] Bluestar: Buy at 1126, target 1170, stop loss 1100.

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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