PSU Stocks To Buy Today: Intraday BUY/SELL Calls By Sumeet Bagadia On Thursday, 6th March

The index ended Wednesday's session at 22,337.30, up 1.15% (+254.65 points), indicating an upsurge of confidence among traders. The Nifty made a strong rebound, ending its ten-day losing skid with a positive close. With a 0.51% (+244.75 point) increase, Nifty Bank ended the day at 48,489.95, a definite sign of rising market confidence. The market's fear indicator, the India VIX, fell 1.16% to 13.67, indicating a slight decline in risk sentiment. It is anticipated that volatility will remain low and traders will remain vigilant as long as the VIX stays below the crucial 15-mark. Additionally, traders should remain vigilant to prevent market impact due to continued geopolitical tensions and worries about tariff wars.

Nifty Outlook Today

"The Nifty index has shaken off persistent selling pressure, showcasing a revival of bullish strength from lower levels. After ten straight sessions in the red, the index has bounced back, hinting at a possible turnaround. The 22,450-22,500 zone now stands as a critical supply area, with the RSI near 30, reflecting the oversold state and a lack of immediate bullish momentum. While the index has seen a short-covering rally, further upside could unfold if call writers continue shifting to higher strikes and if the index sustains its support levels. The 22,000 mark remains a critical level for bulls, providing a base for a potential pullback. However, unless the index decisively clears the 22,500 resistance, any rally might face substantial hurdles due to ongoing call writing and technical barriers. Given the promising turnaround setup and the rekindled market sentiment, adopting a 'Buy on Dips' strategy seems prudent, with immediate resistance at 22,500 and strong support at 22,000. As long as the index trades above 22,000, buying interest is likely to emerge from lower levels, offering tactical opportunities for bulls," commented Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities.

Bank Nifty Outlook Today

"Nifty Bank index broke through its prolonged selling pressure, signalling a revival of bullish sentiment from lower levels. The index has created a sturdy base and showcased a classic technical reversal pattern. The 48,800-48,900 range now stands as a critical supply zone, with the RSI hovering around 40, suggesting limited bullish momentum and a prevailing sideways trend. A continuation of the short-covering rally appears likely, particularly if the index holds above its key support, as evidenced by call writers shifting their positions higher. The 47,800 level remains a stronghold for bulls, setting the stage for a potential pullback. However, unless the Nifty Bank decisively breaches the 49,000 mark, any upside could encounter stiff resistance due to persistent call writing and technical barriers. Considering the market's turnaround setup and the re-emerging bullish sentiment, adopting a 'Buy on Dips' strategy could prove advantageous, with immediate resistance at 48,900 and key support at 47,800. As long as the index remains above 47,800, buying opportunities are likely to emerge from lower levels, supporting a cautiously optimistic trading approach," stated Dhupesh Dhameja.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, advised purchasing two PSU stocks on Thursday, March 6, following the Nifty index's 10-day losing run.

Bharat Electronics

Buy BEL in Cash @ Rs 274.90, Stop-loss @ Rs 265, Target @ 294

BEL is currently trading at ₹274.90, exhibiting a strong upward trajectory. The stock has reversed from lower levels, regaining bullish momentum and forming a strong bullish candlestick. It has also closed above key resistance levels, reinforcing the positive trend. Additionally, BEL is trading comfortably above its 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs), further strengthening the bullish outlook.

The recent breakout above the ₹270 resistance level signals the potential for further appreciation. If the current momentum sustains and additional resistance levels are breached, BEL could target ₹294 in the near term. On the downside, immediate support is observed at ₹270. The Relative Strength Index (RSI) stands at 56.55 and is trending upward, indicating increasing buying momentum.

To mitigate risk, a stop-loss at ₹265 is recommended to safeguard against unexpected market reversals. Given the favorable technical setup and strong market indicators, BEL presents a compelling buying opportunity. Traders may consider entering at the current price of ₹274.90, with a target of ₹294, while adhering to disciplined risk management practices.

Indian Oil Corporation

Buy IOC in Cash @ Rs 122.25, Stop-loss @ 118, Target @ 131

IOC is showing early signs of recovery after a prolonged downtrend and is currently trading around ₹122.5. The recent bounce from the ₹110 support level indicates renewed buying interest, as the stock has formed a bullish candlestick and broken out of a short-term falling trendline on the daily timeframe. This breakout is accompanied by a significant increase in trading volume, further strengthening the bullish case.

Additionally, IOC has closed above its 20-day EMA and is approaching the 50-day and 200-day EMAs. A decisive close above these levels would reinforce the bullish outlook, while failure to reclaim them may lead to continued downside pressure. The ₹117 level is acting as a key support zone, where buyers have stepped in to prevent further decline. A breakdown below this level could signal a resumption of the bearish trend.

On the upside, a breakout above the 50-day EMA could drive the stock towards the ₹130-₹132 range, confirming a stronger recovery. To manage risk effectively, a stop-loss at ₹118 is recommended. Investors should closely monitor price action and volume to validate the potential trend reversal before committing to new positions.

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.