Stocks To Buy Today: Intraday Technical Picks By Sumeet Bagadia On Wednesday - 30th October

Although the Nifty index started the day Tuesday down, it recovered well from intraday lows and remained positive all day. With a robust comeback fuelled by lower-level buying, the index closed at 24,467, up 0.53% (+128 points). The Nifty Bank index started the day strong and remained positive throughout the day, outperforming the benchmark Nifty. As a result of consistent buying from lower levels, the index surged to 52,321, ending 2.07% higher (+1,061 points). A key metric of volatility, the India VIX, increased by 1.57% to settle at 14.51. Because lower volatility tends to draw buyer interest, the market's tendency towards positive momentum may intensify if VIX levels stay below 15.

Nifty Outlook

"The outlook for the Nifty index is bullish to neutral. The hourly chart reveals a breakout from the falling trendline and an early reversal signal with a higher low, establishing a strong support base at 24,200-24,100, bolstered by the presence of put writers. However, on the daily chart, the index faces immediate resistance at 24,500, a key zone underscored by substantial selling pressure and the 10 DEMA. A sustained move above 24,550 could drive the index upward, potentially triggering short covering to reach 25,000, the next resistance level. Conversely, any failure to hold above 24,000 may invite further downside, with targets near 23,700-23,600," said Mr. Dhupesh Dhameja, Technical Analyst, SAMCO Securities.

Bank Nifty Outlook

"The outlook for the Nifty Bank index remains bullish. Reclaiming the 52,000 level has reinforced buyer confidence, with both the 10-day and 20-day EMAs acting as immediate support. Options data further highlights this sentiment, as put writers increase positions at higher strikes (51,800-52,200) while signs of call unwinding emerge. With the RSI on the daily chart closing above 50, a sustained move above immediate resistance could lead to notable upside momentum. If the index holds above the 51,700-51,600 range, it may attract buying interest, supporting a "buy on dips" strategy. Fresh long positions are likely to be created if the index sustains above 52,500, which could trigger short covering, potentially pushing the index towards the 53,000-53,200 range," commented Dhupesh Dhameja.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, suggested buying two stocks on Wednesday, October 30, following the formation of a hammer pattern by the Nifty index close to the crucial support zone.

Hindustan Zinc

Buy in HINDZINC Cash @550.15 SL @ 531 TGT @ 589

HINDZINC is currently trading at Rs 550 and has broken out of a consolidation phase, forming a rounding bottom on the daily chart. This breakout is supported by a significant increase in trading volumes, which strengthens the bullish outlook for the stock. If HINDZINC can sustain above the key resistance level of Rs 575, it may rally toward a target of Rs 589.

The Relative Strength Index (RSI) stands at 61.78 and is trending upwards, signaling increasing buying momentum. Additionally, HINDZINC is trading above key moving averages, the 20-day EMA (short-term), 50-day EMA (medium-term), and 200-day EMA (long-term)-further reinforcing the bullish sentiment.

Given this favorable technical setup, buying HINDZINC at the current price of Rs 550.15 presents a promising opportunity for potential gains. A stop-loss can be set at Rs 531, with a target of Rs 589. The combination of increasing volume, a rising RSI, and supportive moving averages aligns well with the bullish scenario, making this strategy viable in the current market environment.

Eicher Motors

Buy EICHERMOT in Cash @4898.15 SL @ 4727 TGT @ 5241

EICHERMOT is currently trading at Rs 4898.15. The stock recently rebounded from a key support zone and is on the verge of breaking out from its consolidation range, confirming upward momentum. This breakout is supported by a significant increase in trading volumes, indicating strong buying interest from investors. In the short term, the stock appears poised to target Rs 5241.

The Relative Strength Index (RSI) is at 57.45, suggesting a healthy uptrend with potential for further growth. Additionally, EICHERMOT is trading well above its 20-day, 50-day, and 200-day Exponential Moving Averages (EMA), reinforcing the positive trend. If the stock can hold above the critical resistance level of Rs 5000, it could offer a favorable opportunity for long positions.

Traders may consider entering at the current price of Rs 4898.15, with a target price of Rs 5241 and a stop loss at Rs 4727 to manage risk effectively. While the trade setup appears attractive, caution is advised due to potential short-term volatility. Proper risk management will be essential for successfully navigating this trade.