Stocks To Buy Today, Sept 19: Top Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday

On September 18, Indian benchmark indices continued to rise, with the Nifty staying steady above the 25,400 level. Following the Federal Reserve lowering interest rates by 0.25% on Wednesday for the first time in nine months, the Sensex rose 320.25 points, or 0.39%, to close at 83,013.96, while the Nifty 50 rose 93.35 points, or +0.37%, to conclude at 25,423.60. The Nifty index continued its upward trajectory, approaching its major swing high of 25,669 with a gap of less than 1%. Nifty Bank's bullish tone remains intact, with dips consistently being bought and the index closing above its 0.50% Fibonacci retracement level. The India VIX fell 3.54% to settle at 9.85, its lowest level ever. Despite intraday fluctuations, this low volatility suggests moderate confidence as investors avoid aggressive hedging.

Nifty Outlook Today

"Nifty's bullish undertone remains intact, with not a single decisive close below its prior day's low in recent weeks-evidence of strong dip buying. With call writers shifting to higher strikes and put writers adding positions near at-the-money levels, the structure continues to favour the bulls. PCR consistently above 1.00 also supports this view," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

"As long as the index sustains above the 25,200-25,300 support zone, buyers are likely to remain active. On the higher side, a decisive breakout above 25,500 could pave the way toward the 26,000 mark. Adding to the optimism, persistent FPI short-covering and a sharp reduction in their overall short exposure have further lifted sentiment. While minor profit booking may emerge given the stretched levels, the broader market setup remains firmly tilted towards the bulls, keeping buy-on-dips as the favoured strategy," the analyst further added.

Bank Nifty Outlook Today

"Nifty Bank's bullish tone remains intact, with dips consistently being bought and the index closing above its 0.50% Fibonacci retracement level. The absence of any decisive close below the previous day's low further strengthens the case for continued upside. With call writers shifting toward higher strikes and put writers adding positions closer to at-the-money levels, the derivatives structure signals persistent bullish traction. The PCR staying above 1.00 also confirms this outlook," commented Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

"As long as the index sustains above the 55,200-55,300 zone, buyers are likely to remain active. On the higher side, a decisive move beyond 56,000 could open the next leg of the rally. Strong FPI short-covering, coupled with leadership from PSU banks, has further fuelled optimism. While sentiment-driven gains post the Fed outcome may trigger phases of profit booking, the broader trend remains firmly in favour of the bulls," said Dhupesh Dhameja.

Stocks To Buy Today

On Friday, September 19, Mehta Equities Ltd. technical analyst Riyank Arora recommended buying the stocks listed below.

Biocon

Buy | CMP: Rs 368 | SL: Rs 355 | Target: Rs 390 / Rs 405

Biocon is witnessing bullish momentum, supported by strong volumes and positive technical indicators. The stock has rebounded well from its support zone and is now trading comfortably above short-term averages. RSI is trending higher, suggesting more upside potential. Sustaining above ₹368 can lead the stock toward ₹390 and ₹405. A stop-loss at ₹355 is recommended for risk management.

Poonawalla Fincorp

Buy | CMP: Rs 502 | SL: Rs 488 | Target: Rs 525 / Rs 545

Poonawalla Fincorp is in a strong uptrend, holding near recent highs with good volume participation. The stock is trading well above its key moving averages, indicating continued bullish undertone. RSI is supportive and suggests further strength ahead. Sustaining above ₹502 can open the way toward ₹525 and ₹545. Traders may consider fresh buying with a stop-loss at ₹488.

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