Day Trading Guide For Today: Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy/Sell On 6th September

At 8.08 a.m. on Wednesday, the Gift Nifty, previously the SGX Nifty, was trading at 19,663.5, down 7.0 points or 0.04%. The index started trading at 19,677.50 and ranged from an intraday high of 19,690.5 to a low of 19,610.5. This indicates a weak start of the Indian market on Wednesday amid weak sentiment of global cues. By advancing 345.71 points and 230.41 points, respectively, the BSE Midcap and Smallcap indices ended on a positive note. Consumer durables, IT, healthcare, and capital goods emerged as the top gainers. Apollo Hospitals, Coal India, Sun Pharma, BPCL, and Bajaj Auto were among the top gainers on the Nifty, while UltraTech Cement, SBI Life Insurance, Dr. Reddy's Laboratories, Maruti Suzuki, and Eicher Motors were among the losers.

Market Outlook Today

Commenting on the outlook of Nifty, Rupak De, Senior Technical analyst at LKP Securities said, "Nifty has sustained a breakout from a descending channel on the daily chart. The trend will remain favorable as long as the bulls can maintain Nifty above 19,440. A "buy on dips" strategy should be the preferred approach until Nifty falls below 19,440. Resistance on the upper end is positioned at 19,600, and if breached, the index could potentially move higher."

Commenting on Bank Nifty outlook today, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "The Bank Nifty index is currently consolidating within a defined range, with support at 44,500 and resistance at 44,650. Despite the consolidation, a bullish undertone is observed, and traders are encouraged to consider buying on dips, with strong support around 44,300-44,200. A breakout above 44700 could lead to further upside moves, especially towards the 45,000 level where significant open interest is seen on call options."

Stocks To Buy Today

As of today, September 6th, Sumeet Bagadia, Executive Director of Choice Broking, has two stock recommendations to buy for intraday trading.

Sun Pharma

Buy SUNPHARMA in cash @ Rs 1131.90, Stop-loss: Rs 1115, Target: Rs 1175

Sun Pharma, is presently trading at 1131.90 levels, having recently broken out from its previous range of 1110-1125 that persisted for a week. This breakout signifies a potential shift in the stock's price dynamics, making it an intriguing investment prospect.
In addition, the Relative Strength Index (RSI) is trending upward and appears to be on the verge of a positive crossover, indicating a potential increase in buying pressure. Moreover, Sun Pharma's price is currently positioned above its 20-50-100-200 Exponential Moving Averages (EMA), suggesting underlying strength in the stock.

The Bollinger Band is also displaying expansion, indicating an increase in volatility and potential upward momentum. Taking all these factors into consideration, it is our professional opinion that Sun Pharma presents a favourable buying opportunity at the current price of 1131.90, with a target price of 1175. It is important to note that our views would be invalidated if the stock were to fall below the 1115 level.

Bajaj Auto

Buy BAJAJ_AUTO in cash @ Rs 4701.60, Stop-loss: Rs 4600, Target: Rs 4900

Bajaj Auto, currently trading at Rs 4701, has demonstrated strong technical indicators that make it an attractive prospect for investors. Over the past week, the stock has found solid support at the Rs 4665 level, indicating a level of stability in its price action. Moreover, Bajaj Auto is currently trading above crucial Exponential Moving Averages (EMAs) such as the 20-day, 50-day, 100-day, and 200-day EMAs, reflecting its bullish momentum and potential for upward price movement.

The Relative Strength Index (RSI) stands at 52 and is showing an upward slope, suggesting growing buying momentum. This combination of factors indicates that Bajaj Auto may have the potential to reach a target price of Rs 4900 in the near term.

To manage risk, it is advisable to set a stop-loss (SL) at Rs 4600 to protect your investment in case the market takes an unexpected turn. Overall, given the technical analysis and current market conditions, Bajaj Auto appears to be a promising buy opportunity for those targeting a Rs 4900 price level, with prudent risk management measures in place.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.