Market Trading Guide: Two Suggested Stocks for Monday, October 8th
The Nifty saw persistent negative pressure for the second day, according to Rupak De, Senior Technical Analyst at LKP Securities, with persistent trading below critical levels causing a fall near 25,000. He underlined that higher levels are now selling zones and that market mood has substantially deteriorated. The next level of support is expected to be around 24,750, while the next level of resistance is at 25,300.
On Friday, the auto, banking, and financial stocks caused the Sensex and Nifty to fall for the fifth straight session, extending their losing run. Investor mood was muted, weighed down by growing foreign outflows and intensifying Middle East tensions. The NSE Nifty fell 200 points, or 0.79%, to finish at 25,049.8, while the BSE Sensex fell 808 points, or 0.98%, to settle at 81,688.4.
The Nifty had a bear assault for the second day in a row, according to Rupak De, Senior Technical Analyst at LKP Securities, with persistent trading below critical levels causing a fall towards 25,000. “The mood has deteriorated dramatically, with higher levels acting as selling areas. The next level of support is observed around 24,750 on the lower end, while resistance is evident at 25,300 on the higher end,” De said.
Two stock suggestions for Monday are as follows:+
Buy Petronet LNG at 357.85 Rupees; Target: Rs 410
Rs 320 is the stop loss.
Petronet is on an uptrend as evidenced by the completion of its fourth wave and the beginning of its fifth impulsive wave. It closed above the 0.786 mark after emerging from the 0.618 Fibonacci zone, indicating a possible move higher. The uptrend is confirmed by the price’s trading above both the Slow (50 EMA) and Fast (20 EMA) moving averages.
Strong buyer interest in the asset is reflected in the spike in volume, and the upward moving momentum indicator (RSI) reinforces the favorable price movement. As long as the stock stays above the 320 level, a long position might be considered based on this technical situation.
Sell TVS Motor for Rs 2,705.15; Set a target price of Rs 2,330
Cut your losses at Rs 2,980.
On the weekly timescale, TVS Motor created a bearish marubozu candlestick pattern, signifying a downward trend. The fact that the stock has hit lower highs and lows indicates that sellers have the upper hand over buyers. The current selling pressure has consumed nearly five weeks of upward movement, signaling strength in the downturn, and the RSI, which is going downward, confirms the price action. In TVS Motor, a short position is permissible as long as it stays below the 2,985 mark.
(Disclaimer: The experts’ views, opinions, ideas, and recommendations are entirely their own. These don’t reflect The Trader Pulse’s opinions)
