Rajesh Palviya Stock Recommendations: In the absence of momentum from both sides, the Indian stock market continued to trade in a limited range for the third consecutive session on Wednesday. The NSE Nifty lost 31 points to end at 17,624, while the BSE Sensex closed at 59,028, down 168 points. Bank Nifty closed 210 points down at 39,455. Rajesh Palviya, VP, Technical and Derivatives Research, Axis Securities, believes that ‘buying on the dips’ is the ideal strategy for the current market as the overall trend on Dalal Street is still positive. On stocks to buy or sell today, Axis Securities expert recommends 4 stocks – Shobha, Mahindra & Mahindra Financial Services, Balrampur Chini and Dixon Technologies.
Feather nifty technical outlookRajesh Palviya of Axis Securities said, “On the daily chart, the index has formed a small bearish candle with shadows on either side representing volatility movement throughout the session. The index is in formation of a higher top and higher bottom on the daily chart. is rising which indicates an up trend. The chart pattern suggests that if Nifty crosses and sustains the level of 17700, then it will be buying, which will take the index towards the level of 17800-17900 However, if the index breaks below the level of 17600, it will witness a selloff, which will take the index towards 17500-17400.”
He said Nifty is trading above its 20, 50, 100 and 200 day SMA, which indicates positive bias in the short term. Nifty remains in an uptrend for short term, hence buying on dips remains our preferred strategy.
“Daily Strength Indicator RSI is trending down and quoted below its reference line, indicating negative bias,” Palviya said.
On the technical outlook of Nifty Bank, Axis Securities expert said, “On the daily chart, the index has formed a bearish candle with long shadows on either side indicating extreme volatility at higher levels. Further higher is moving in bottom formation. Daily chart indicates a short term trend. The chart pattern shows that if Bank Nifty crosses and sustains 39800 level then it will take buying which will push the index to 40200 -40500 level. However, if the index breaks below 39600 level it will witness a selloff, which will take the index towards 39400-39200.”
Rajesh Palviya said Bank Nifty is trading above the 20, 50, 100 and 200-day SMAs, indicating a positive bias in the short to medium term. Bank Nifty remains in an uptrend in the near term, hence buying on dips remains our preferred strategy.
“The daily strength indicator RSI remains flat and below its reference line, indicating an absence of momentum on either side,” he said.
buy or sell stock for today
Rajesh Palviya of Axis Securities listed 4 stocks to buy today which are as follows:
1]Shobha: Buy Here 726, target 750, stop loss 715;
2]Mahindra & Mahindra Financial Services: Buy Here 222, target 235, stop loss 216;
3]Balrampur Chini: Buy Here 376, Target 395, stop loss 366; And
4]Buy at: Dixon Technologies 4372, target 4470, stop loss 4325.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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