Shares To Buy Today: Day Trading Picks By Sumeet Bagadia of Choice Broking On Thursday, 9th May

The Bank Nifty began down and was under pressure all day, wrapping up lower at 48,021, while Nifty was volatile throughout the day and ended flat at 22302. For the tenth day in a row, the India VIX climbed, closing at 17.08, up 0.43%. With the announcement of the FY24 results today, investors will be keenly monitoring plenty of major equities, including Abbott India, Asian Paints, Bharat Petroleum Corporation, Indian Overseas Bank, State Bank of India, and Hindustan Petroleum Corporation.

Nifty Outlook

"Strong put writing was observed at the 22,200 Strike in Nifty while the 22,400 & 22,500 Strikes saw significant call writing. The call writers strengthened their positions at these strikes in Nifty. Unless and until put writers (Bulls) exit from the 22,200 Strike, Nifty is likely to trade sideways or remain rangebound. Up move is likely only if call writers (Bears) exit from the key 22,500 Strike in the Index," said Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.

"The Nifty closed nearly unchanged at 22,302.50, reflecting a flat session. It continued to trade below 40-day EMA and 20-day EMA, suggesting short-term weakness; unless the index manages to surpass the level of 22,500, the current trend is likely to continue. Over the past three trading sessions, the daily RSI has declined from 52 to 47, indicating a slowdown in bullish momentum. A breach of 22,220 could lead to a downward movement towards 22,100. However, the lower Bollinger Band on the daily chart, positioned around 22,070, is viewed as a strong support level for the index," commented Om Mehra, Technical Analyst, SAMCO Securities.

Bank Nifty Outlook

"Bank Nifty traded sideways throughout the day with occasional spikes observed on Intraday basis hurting the Intraday traders and closed 264 points lower at 48,021. Both the call & put writers (Bears & Bulls) battled out at the 48,000 Strike in the Index with the put writers (Bulls) fighting out hard to hold on to this level. The option activity at the 48,000 Strike will provide cues about Bank Nifty's future direction," Ashwin Ramani further added.

"Bank Nifty extended its losing streak, closing at 48,021.10, marking a decline of 0.55%. The index breached the 61.8% retracement support level positioned at 47,875, with immediate support now shifted around 47,550 levels. On the hourly chart, there is an immediate resistance level at 48,400. If this resistance is surpassed, we might anticipate a relief rally toward the 48,750 level," Om Mehra further added.

Stocks To Buy Today

Choice Broking's executive director, Sumeet Bagadia, made a recommendation on Thursday, May 9, regarding the buying or selling of two intraday stocks.

ICICI Lombard General Insurance Co

Buy ICICIGI in cash @ Rs 1723, stop-loss @ Rs 1664, target @ Rs 1840

ICICI General Insurance (ICICIGI) is currently trading at Rs 1723, exhibiting sideways movement within the range of Rs 1610 to Rs 1723. A close above the Rs 1725 level is anticipated to propel the stock towards Rs 1800 and Rs 1840 levels. Conversely, immediate support levels are expected at Rs 1664 and Rs 1650.

The Relative Strength Index (RSI) stands at 58.3, trending upwards, indicating increasing buying momentum from the oversold region. Moreover, the Stochastic Relative Strength Index (Stoch RSI) recently witnessed a positive crossover from the oversold zone. These technical indicators collectively suggest the potential for ICICIGI to reach a target price of Rs 1840 in the near term.

To manage risk effectively, it is advisable to implement a stop-loss (SL) at Rs 1664 to safeguard investments against unforeseen market reversals. In summary, considering the technical analysis and prevailing market conditions, ICICIGI presents an attractive buying opportunity for those targeting an Rs 1840 price objective, provided prudent risk management measures are in place.

Heritage Foods

Buy HERITGFOOD in cash @ Rs 359.4, stop-loss: Rs 348, target: Rs 377

HERITGFOOD is currently trading at Rs 359.4. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of Rs 350 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching Rs 377 levels. On the downside, substantial support is evident near Rs 348.

Furthermore, HERITGFOOD is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 71.75, signalling an upward trajectory and confirming an increase in buying momentum.

In summary, considering the technical analysis and prevailing market conditions, HERITGFOOD appears to present a promising buying opportunity for those targeting a Rs 377 price objective, contingent upon the implementation of prudent risk management measures.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 348 to protect the investment in case of an unexpected market reversal.

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.