Shares To Buy Today: Day Trading Guide By Sumeet Bagadia of Choice Broking On Wednesday, 8th May

Tuesday's opening of domestic benchmark indices was higher due to positive global cues, as the market witnessed a major advantage, resulting in an almost 6% surge in the Volatility Index (India VIX). For the third day in a row, the Nifty continued to decline, closing at 22,303, down 140 points. The Bank Nifty began the day on a positive note, but strong selling pressure caused the index to close at 48,285 on the downside. For the ninth day in a row, the India VIX climbed, closing at 17, up 2.45%. Despite the significant rise, the VIX went up by 67% during the last nine trading sessions.

Nifty Outlook

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "The 22,400, 22,450 & 22,500 Strikes saw put writers (Bulls) exiting and call writers' (Bears') entry, which led to the down move in Nifty today. Significant call writing was observed at the 22,300 Strike. After today's closing, the call writers have further strengthened their position at the 22,500 Strike. The put writers have sizeable positions at the 22,200 Strike (1,20,029 contracts on the put side vs 38,147 contracts on the call side) and the option activity at this strike will provide cues about Nifty's future direction."

Om Mehra, Technical Analyst, SAMCO Securities said, "The session saw a prominent bearish candle, pulling the index down from higher levels. The hourly chart shows a classic head and shoulders pattern, with the breakdown of the neckline at 22,400 causing a significant drop. The index is expected to fill the gap and head towards 22,180 levels. Short-term traders should wait for fresh long until the level 22,500 is crossed."

Bank Nifty Outlook

"Bank Nifty took resistance around the 49,000 levels and closed 610 points lower at 48,285. All Strikes from 48,500 until 49,000 saw put writers (Bulls) exiting and call writers' (Bears) entry, which was the reason for the down move in Bank Nifty today. The call writers have strengthened their position at both the 49,000 & 48,500 Strike in the Index. The option activity at the 48,500 Strike will provide cues about Bank Nifty's Intraday direction ahead of the expiry Wednesday," Ashwin Ramani added.

"Bank Nifty ended the session at 48,285.35, down 1.25%. Throughout the day the private banking stocks continued to decline. The index has broken an important level of 48,342 which indicates the slowing down of bullish momentum. The hourly chart shows consistent lower lows and lower highs. Bank Nifty is holding at 50% retracement; a drop below 48,180 may push it to 47,870, near the 61.8% retracement," Om Mehra added.

Stocks To Buy Today

On Wednesday, May 8, Sumeet Bagadia, the executive director of Choice Broking, recommended buying or selling two intraday stocks.

EIH

Buy EIHOTEL in cash @ Rs 492.10, stop-loss @ Rs 475, target @ Rs 515

EIHOTEL, currently priced at 492.10, boasts a robust support level at 475, coinciding with its 20-day Exponential Moving Average (EMA). Trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs signifies the stock's bullish stance. However, facing a minor resistance at 500, also its all-time high, suggests a potential breakthrough.

Should EIHOTEL breach the 500 resistance, it could pave the way for further gains, with a target projection of 515 and beyond. This upward trajectory is supported by the stock's favorable technical indicators and its consistent trading above key moving averages.

Investors may consider monitoring price action around the 500 level closely, as a successful breach could signal a bullish continuation pattern. Meanwhile, maintaining awareness of potential profit-taking scenarios or market retracements is advisable, especially given the stock's recent run-up.

In summary, EIHOTEL's current technical setup suggests an optimistic outlook, with the potential for further upside movement upon overcoming the 500-resistance level. Traders and investors alike may find opportunities aligned with this bullish momentum, provided they remain vigilant and adapt their strategies accordingly.

Based on the above analysis we recommend buying EIHOTEL at CMP of 492.10 with a stop loss of 475 for the targets of 515.

Tech Mahindra

Buy TECHM in cash @ Rs 1292.45, stop-loss @ Rs 1243, target @ Rs 1400

TECHM is currently trading at Rs 1292.45, exhibiting sideways movement within the range of 1240 to 1330. If the price closes above the 1330 level, it is anticipated to ascend towards 1400 levels. Conversely, 1243 and 1240 are expected to act as immediate support levels.

The Relative Strength Index (RSI) stands at 59.10 and is trending upwards, indicating increasing buying momentum from the oversold region. Additionally, the Stochastic Relative Strength Index (Stoch RSI) recently underwent a positive crossover from the oversold zone. These technical indicators collectively suggest the potential for TECHM to attain a target price of Rs 1400 in the near term.

To effectively manage risk, implementing a stop-loss (SL) at Rs 1243 is advisable to protect investments against unforeseen market reversals. In summary, considering the technical analysis and prevailing market conditions, TECHM presents an attractive buying opportunity for those aiming for a Rs 1400 price objective, provided prudent risk management measures are 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.