The Nifty had a rough start on Tuesday and was under a lot of selling pressure in the first half of the day. Nevertheless, the index made a strong comeback in the second half and ended the day at 24,213. Bank Nifty saw selling pressure and started the day down. The index, however, saw a robust comeback in the second half and ended the day at 52,207. In addition, the INDIA VIX showed a decrease in market volatility, dropping 4.08% to 16.01. The India VIX, a crucial measure of market volatility, closed at 16.12 after declining 3.39%. Caution is still advised since extreme volatility tends to draw selling activity, and the VIX is currently over the 15-mark and circling a nine-week high.

Nifty Outlook

“Technically, the Nifty formed a piercing line candle on the daily chart around the 150-Days exponential moving average (DEMA) support, indicating strength. According to the piercing line candlestick pattern, if the index crosses 24,320, the short-term pullback rally may extend to 24,500-24,600 levels. The short-term trend is down, but as long as 23,890 support holds, a relief rally may be feasible,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. (A Pantomath Group Company).

Bank Nifty Outlook

“Technically, index formed a bullish engulfing candlestick pattern on daily chart, indicating strength. As per this pattern, as long as index holds 50,865, relief rally will continue. On the upside, recent swing high is placed near 52,580, which will act as resistance for Bank Nifty. The overall Bank Nifty is consolidating in a narrow range in the near team,” commented Hrishikesh Yedve.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, recommended buying two stocks on Wednesday, November 6th, following the Nifty index’s strong support at the 23,800 mark, which formed a bullish harami candlestick pattern with the RSI indicating a positive divergence.

Aditya Birla Sun Life Amc

Buy ABSLAMC in Cash @ Rs 822.6, Stop-loss @ Rs 792, Target @ Rs 870

ABSLAMC is currently trading at 822.60, having reached its all-time highs. The stock has shown a strong uptrend, consistently forming higher highs and higher lows over recent months, which reflects firm bullish momentum and suggests the potential for further upward movement. It has also formed a strong bullish candle and given a breakout from its consolidation range. If the stock maintains its position above the 830 level, it could potentially advance to new highs.

The Relative Strength Index (RSI) is currently at 64.63 and trending upward, indicating increasing buying momentum. This upward trend in the RSI reinforces the bullish outlook, signaling that the stock is gaining strength. Additionally, ABSLAMC recently bounced from its 20-day and 50-day Exponential Moving Averages (EMAs), further confirming the prevailing bullish sentiment.

Considering these positive technical indicators and the current market environment, ABSLAMC presents a promising buying opportunity for investors targeting a price level of 870. To manage risk, a stop-loss at 792 is recommended, as this will help protect against unexpected market downturns and minimize potential losses.

AMI Organics

Buy AMIORG in cash @ Rs 2041.15, Stop-loss @ Rs 1970, Target @ Rs 2165

AMIORG daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable higher high and higher low pattern, and the company’s recent upward swing has effectively violated the neckline, establishing a new week high. This breakthrough indicates the possibility of a significant follow-through upward increase in the stock price.

This trend signals strong momentum in the stock. There is potential for AMIORG to attain a target price of Rs 2165 in the near term.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The stock formed a strong bullish momentum pattern on daily chart signalling a potential continuation of the uptrend. Furthermore, AMIORG is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend.

For traders, keeping an eye on the strong support near 1970 levels is advisable, as a breach of this level could signal a shift in sentiment.

Based on the above analysis we recommend buying AMIORG and the CMP of 2041.15 with a stop loss of 1970 for the target of 2165.

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: Wednesday, November 6, 2024, 6:47 [IST]