Rajesh Palviya stock recommendations: In absence of momentum on either side, Indian stock market continued to trade range-bound on third straight session on Wednesday. NSE Nifty went off 31 points and closed at 17,624 levels whereas BSE Sensex corrected 168 points to 59,028 mark. Bank Nifty finished 210 points below at 39,455 levels. Rajesh Palviya, VP – Technical and Derivative Research at Axis Securities believes that ‘buy on dips’ is the ideal strategy for current market as overall trend on Dalal Street is still positive. On stocks to buy or sell today, the Axis Securities expert recommended 4 shares — Sobha, Mahindra & Mahindra Financial Services, Balrampur Chini and Dixon Technologies.
On Nifty technical outlook, Rajesh Palviya of Axis Securities said, “On the daily chart, the index has formed a small bearish candle with either side shadows representing volatility movement throughout the session. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating an up trend. The chart pattern suggests that if the Nifty crosses and sustains above the 17700 level it would witness buying, which would lead the index towards 17800-17900 levels. However, if the index breaks below the 17600 level it would witness selling, which would take the index towards 17500-17400.”
He said that Nifty is trading above its 20, 50, 100, and 200-day SMA, which indicates positive bias in the short term. Nifty continues to remain in an uptrend for the short term, so buying on dips continues to be our preferred strategy.
“The daily strength indicator RSI is moving downwards and is quoting below its reference line, indicating negative bias,” Palviya said.
On Nifty Bank technical outlook, the Axis Securities expert said, “On the daily chart, the index has formed a bearish candle with either side long shadows indicating extreme volatility at higher levels. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a short-term up trend. The chart pattern suggests that if Bank Nifty crosses and sustains above the 39800 level it would witness buying which would lead the index towards 40200-40500 levels. However, if the index breaks below the 39600 level it would witness selling, which would take the index towards 39400-39200.”
Rajesh Palviya went on to add that Bank Nifty is trading above 20, 50, 100, and 200-day SMA, indicating positive bias in the short to medium term. Bank Nifty continues to remain in an uptrend in the short term, so buying on dips continues to be our preferred strategy.
“The daily strength indicator RSI continues to remain flat and is below its reference line, indicating the absence of momentum on either side,” he said.
Buy or sell stock for today
Rajesh Palviya of Axis Securities listed out 4 stocks to buy today that are as follows:
1] Sobha: Buy at ₹726, target ₹750, stop loss ₹715;
2] Mahindra & Mahindra Financial Services: Buy at ₹222, target ₹235, stop loss ₹216;
3] Balrampur Chini: Buy at ₹376, target ₹395, stop loss ₹366; and
4] Dixon Technologies: Buy at ₹4372, target ₹4470, stop loss ₹4325.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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