On the primary expiry day, the Nifty50 set a new record high of 26,250.90, continuing the winning run of the Indian benchmark indices. The Sensex, however, closed at 85,836.12 after rising to 85,930.43. Tech Mahindra and Infosys were among the top gainers, while Bharti Airtel and Power Grid were among the biggest losers. Upcoming RBI policy decisions and global market trends will likely determine investor mood amid which Choice Broking’s executive director Sumeet Bagadia recommended buying two stocks on Monday, 1st October.

Nifty Outlook

“Technically, the index on a daily scale has formed a small red candle and on weekly scale index has formed a big green candle. Moreover, the index on a weekly scale has managed to close above the breakout of the rising channel pattern, indicating strength. In the short term, as long as, Nifty holds above the breakout level of 26,000 a “buy on dips” strategy should be adopted. On the upside, 26,500 will be immediate short-term target for the index,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bank Nifty Outlook

“Technically, the index on a daily scale has formed a bearish Marubozo candle, indicating weakness. However, on the weekly scale, the index is still holding above the breakout point of a rounding bottom pattern. Bank nifty might face an immediate hurdle near the psychological level of 54,000 and 54,500. In the short term, Bank nifty may witness some consolidation or profit taking but any dip around 53,350-53,400 will offer fresh buying opportunity in Bank nifty. Thus, buy on dips strategy should be adopted in Bank Nifty for short to medium term,” predicted Hrishikesh Yedve.

Stocks To Buy

On Monday, October 1st, Choice Broking’s executive director Sumeet Bagadia suggested purchasing two stocks.

Coal India

Buy COALINDIA in Cash @ 516.1, stop-loss @ 500, target @ 548

COALINDIA is currently trading at Rs 516.1, exhibiting a strong bullish trend. The stock recently bounced from the support zone and given a breakout of consolidation range, confirming upward momentum. This breakout has been supported by a significant increase in trading volumes, reflecting strong buying interest from investors. In the short term, COALINDIA is poised to target Rs 548.

The Relative Strength Index (RSI) is at 58.33, indicating that the stock is in a neutral zone, suggesting room for further upside. Additionally, COALINDIA is trading well above its key 20-day, 50-day, and 200-day Exponential Moving Averages (EMA), reinforcing the positive trend.

If the stock manages to hold above the critical resistance level of Rs 520, it provides a favorable opportunity for long positions. Traders may consider entering at current levels with a target price of Rs 548, while maintaining a stop loss at Rs 500 to effectively manage risk. With proper risk management, this setup offers an attractive trade, though caution is advised due to the possibility of short-term volatility.

Colgate Palmolive (India)

Buy COLPAL in Cash @ 3,764.05, SL @ 3650, target @ 3990

COLPAL is currently trading at Rs 3,764.05, exhibiting a strong bullish trend as it forms higher highs and higher lows. The stock has recently broken out of a consolidation phase and is now trading above the crucial level of Rs 3,750, confirming an upward momentum. This breakout is supported by a notable increase in trading volumes, signaling strong buying interest from investors. In the short term, COLPAL is expected to target Rs 3,990.
The Relative Strength Index (RSI) is at 71.45, indicating solid bullish strength.

Furthermore, the stock is trading comfortably above its key 20-day, 50-day, and 200-day Exponential Moving Averages (EMA), reinforcing the prevailing positive trend.

If COLPAL continues to hold above the Rs 3,800 mark, it presents a favorable buying opportunity. Traders may consider entering a long position with a target price of Rs 3,990, while maintaining a stop loss at Rs 3,650 to manage risk. Proper risk management is essential, especially given the elevated RSI and the potential for short-term volatility.

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.

Story first published: Sunday, September 29, 2024, 13:27 [IST]