Rajesh Palviya’s stock recommendations: 2 stocks to buy or sell today — 19th Sep

Rajesh Palviya's stock recommendations: On account of weak global cues, Indian stock market witnessed bloodbath on Friday last week as Nifty 50 index lost to the tune of 350 points whereas BSE Sensex crashed around 1,100 points. However, a good number of market experts are still not sure about the trend reversal as the weakness is related to possible US Fed interest rate hike in upcoming FOMC meeting. Rajesh Palviya, VP - Technical and Derivative Research at Axis Securities believes that market may bouncer back from around 17,200 to 17,000 levels and trend for Indian stock may continue to remain weak till US Fed meeting is not over. On his stock recommendations today, Rajesh Palviya listed out two stocks — Kalyan Jewellers and Bharat Dynamics Ltd.

Rajesh Palviya's recommendations

Speaking on Nifty technical outlook, Rajesh Palviya of Axis Securities said, "On the weekly chart, the index has formed a Bearish Engulfing candle with an upper shadow indicating selling around the 18100 level. Nifty closed near an upward sloping trendline at 17500. A daily close below 17500 will lead the Nifty towards the 17200-17000 level. Whereas if the Nifty holds above the trendline then it is expected to bounce back. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if the Nifty crosses and sustains above the 17700 level it would witness buying which would lead the index towards 17900-18100 levels. However, if the index breaks below the 17400 level it would witness selling, which would take the index towards 17100-16900."

The Axis Securities expert said that Nifty is now well placed above its 50, 100 SMA indicating positive bias in the short & medium term. Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy. For the week, he expected Nifty to trade in the range of 16900-18100 with mixed bias.

"The weekly strength indicator RSI is above its respective reference lines indicating positive bias in the medium term. Whereas daily RSI has given a cross-over below its respective reference lines, indicating that some profit booking is expected in the short term," he said.

On Nifty Bank outlook, Rajesh Palviya said, "Bank Nifty is trading above 20, 50, and 100-day SMA's, which are important short-term moving averages, indicating positive bias in the medium term. Bank Nifty continues to remain in an uptrend in the short term, so buying on dips continues to be our preferred strategy. For the week, we expect Bank Nifty to trade in the range of 41900-39850 with mixed bias."

On the weekly chart, the index has formed a Bullish candle with a long upper shadow indicating selling at higher levels. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if Bank Nifty crosses and sustains above the 41150 level it would witness buying which would lead the index towards 41500-41900 levels. However, if the index breaks below the 40500 level, it would witness selling, taking the index towards 40150-39850.

Buy or sell stocks for today

As mentioned above, Rajesh Palviya's stock recommendations are Kalyan Jewellers and Bharat Dynamics Ltd. Here we list out details in regard to ajesh Palviya's stock recommendations:

1] Kalyan Jewellers: Buy at ₹94, target rS 110, stop loss ₹88; and

2] Bharat Dynamics Ltd or BDL: Buy at ₹929, target ₹975, stop loss ₹898.

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