Trade Call: 2 Buy/Sell Stock Recommendations By Sumeet Bagadia of Choice Broking On Tuesday, 9th April

Nifty began the day with a gap up on Monday and then steadily rose, wrapping up at 22,666-153 points higher. The India VIX wrapped up at 11.61 after rising by 2.40% intraday. Nifty continued to gain strength, causing the index to reach a record high of 22,697.30. With a hold above the key level, the Nifty ended the day up 0.68% at 22,666.30. Bank Nifty reached a new all-time high of 48,717 and closed at 48,582, up 89 points, after trading steadily higher during the day. Sentiment was boosted by the global market rally, dropping oil prices, and strong business announcements. Throughout the day, large-cap stocks surged while mid-cap and small-cap stocks lagged. The Nifty real estate, auto, metal, consumer durable, and oil and gas sectors were the primary gainers.

Nifty Outlook Today

Rupak De, Senior Technical Analyst, LKP Securities said, "Nifty maintained its strength by staying above 22500 throughout the day. Additionally, it exceeded the previous all-time high of 22619. However, the index has reached near the upper band of the rising wedge, which might act as resistance in the short term. Over the short term, the index might consolidate within a range. On the lower end, support is placed at 22500, below which the index might fall back into consolidation."

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "The Bank Nifty exhibited indecision in the market with the formation of a doji candle on the daily chart, indicating a standoff between buyers and sellers at current levels. However, the overall sentiment remains bullish, contingent upon the index maintaining support above 48,000, where substantial open interest in put options exists. To sustain the upward trajectory, the index must decisively breach the 48,700 mark, paving the way for further gains towards the 49,500 to 50,000 range."

Stocks To Buy Today

On Tuesday, April 9, Sumeet Bagadia, executive director of Choice Broking, recommended buying or selling two stocks. The technical studies of Reliance Industries and Dynamatic Technologies are listed below.

Dynamatic Technologies

Buy DYNAMATECH in cash @ Rs 8937.7, stop-loss @ Rs 8686, target @ Rs 9444

DYNAMATECH is exhibiting strong bullish momentum, currently trading at an all-time high of 9082.9 levels. The recent breakout above the crucial resistance at 8500 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, DYNAMATECH is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 73.85 levels.

For traders, keeping an eye on the strong support near 8686 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, DYNAMATECH current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying DYNAMATECH and the CMP of 8937.7 with a stop loss of 8686 for the target of 9444.

Reliance Industries

Buy RELIANCE in cash @ Rs 2971.95, stop-loss @ 2880, target @ Rs 3120

Reliance Industries Limited (RELIANCE) is currently positioned at 2971.95 levels, reflecting a solid foundation established at the support level of 2880 close to its 50-day EMA levels. The consolidation and base formation at this support level signify stability in the stock's performance. Additionally, RELIANCE exhibits resilience by trading above crucial moving averages, affirming its inherent strength.

While facing a minor resistance at 3020 levels, a breakout beyond this threshold could pave the way for further upward momentum. Sustaining levels above 3020 may propel the stock towards the next target at 3120 levels, presenting a promising outlook for investors.

Reinforcing the positive sentiment, the Relative Strength Index (RSI) comfortably rests at 56.57 levels, indicating a favourable balance between buying and selling pressures. The technical parameters collectively suggest a constructive environment for RELIANCE, encouraging potential bullish movements in the near term.

Based on the above technical analysis we recommend buying RELIANCE at CMP of 2971.95 for a short to medium-term outlook with a stop loss of 2880 for targets of 3120.

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.