Stocks To Buy Today: Intraday Technical Picks By Sumeet Bagadia On Monday - 28th October

The previous week, the benchmark indices experienced a decline due to strong selling in every sector. The broader market was also affected, as the Sensex and Nifty both closed in deep red after extending their losing streaks to five days. The Nifty dropped 218.60 points (0.90%) to 24,180.80, while the Sensex dropped 662.87 points (0.83%) to settle at 79,402.29. The aggressive selling by foreign institutional investors (FIIs) has put pressure on market sentiment. With just 804 stocks rising against 2,968 falling, Friday's trading saw market breadth in negative territory overall. This is indicative of investor caution and persistently poor sentiment.

Nifty Outlook

"Nifty ended the week with a significant 2.71% decline falling for the fourth consecutive week, forming a head-and-shoulders pattern on the daily chart. The index closed below 24,200, as well as below the 21-week EMA, indicating mounting pressure in the market driven by heavy selling from Foreign Institutional Investors (FIIs) and disappointing Q2 results. Immediate support is now seen at the 23,900-24,000 range; a breach of this level could lead to a further drop toward 23,600. On the upside, resistance is noted at 24,400, with a breakout above this level potentially extending gains to 24,750," said Ms. Palka Arora Chopra, Director of Master Capital Services Ltd.

Bank Nifty Outlook

"Bank Nifty has experienced a decline of over 7.5% from its all-time highs and fell by 2.51% this week, closing below the 51,100 mark and the 21-week EMA, signaling increased selling pressure. This downturn follows disappointing Q2 results from AU Bank, IndusInd, and Kotak Bank. Immediate support is positioned at 50,200; breaching this level could extend the decline to 49,600. Conversely, the 51,100 EMA will serve as resistance, with a strong close above it potentially inviting buying interest towards 51,800," added Palka Arora Chopra.

Stocks To Buy Today

On Monday, October 28, Choice Broking's executive director Sumeet Bagadia recommended purchasing two stocks as the Nifty index nears its psychological support zone of 24,000-24,100.

Neuland Laboratories

Buy NEULANDLAB in cash @ Rs 13803.25, stop-loss @ Rs 13290, target @ Rs 14600

The current market status of the stock reveals a favourable position as it trades around 13803.25 levels. The recent upward movement from the strong support level at 13,550, aligned with the 20-day EMA, highlights the stock's resilience. This support level has acted as a foundation for the price, allowing for a rebound after recent declines Furthermore, the stock is trading above crucial moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, signifying sustained strength.

Momentum is indicated by the RSI (Relative Strength Index), which is on an upward trajectory and currently stands at 53.74. This RSI movement reinforces the stock's inherent strength. A minor resistance around 14150 levels is noteworthy, and a potential breakout beyond this level could propel the stock towards the target of 14600 and beyond.

According to the aforementioned technical analysis, we advise buying NEULANDLAB at the CMP of 13803.25 for the target of 14600. If the stock closes below 13290, our analysis will be invalid.

City Union Bank

Buy CUB in cash @ Rs 171, stop-loss: Rs 165, target: Rs 180

CUB daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable higher high and higher low pattern in daily frame and the company's recent upward swing has effectively violated the neckline, establishing a technical recovery from lower levels. This breakthrough indicates the possibility of a significant follow-through upward increase in the stock price.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The stock formed a hammer candle signifying a potential continuation of the uptrend following and the daily strength indicator RSI (14) is moving upwards, indicating a positive bias. Furthermore, CUB is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given the overall chart pattern, the analysis suggests a favourable long trading opportunity for investors.

Based on the above analysis we recommend buying CUB in cash at CMP of 171 for the target of 180 with a stop loss of 165.

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.