Wednesday’s Stock Market Strategy: Six Buy or Sell Picks
Written by Sanjay Kumar
Stock Market Outlook for Wednesday, October 18, 2023
In the previous trading session, both the Sensex and Nifty 50, the key equity indices, managed to rebound after three consecutive days of losses. This upturn was spurred by extensive buying across various sectors, supported by positive global cues.
Despite ongoing concerns about the Israel-Hamas conflict and its potential to escalate, investors seem to have turned their focus toward corporate earnings and macroeconomic indicators.
The Nifty 50 index ended the day at 19,811.50, marking an 80-point gain, or a 0.40% increase. On the other hand, the Sensex, a 30-share benchmark, concluded at 66,428.09, reflecting a 261-point rise, or a 0.39% gain. The BSE Midcap index followed the benchmark index, rising by 0.39%, while the Smallcap index outperformed, surging by 0.70%.
Market experts observed that these gains were primarily attributed to short-covering, supported by positive cues from the Asian markets and optimism regarding robust corporate earnings.
Day Trading Recommendations for Today
Regarding the Nifty outlook for today (October 18), Ajit Mishra, SVP – Technical Research at Religare Broking, emphasizes a bullish stance. He suggests adopting a “buy on dips” strategy as long as the Nifty holds the 19,600 mark. Additionally, Mishra advises traders to exercise caution in terms of Stock selection and risk management due to increased volatility associated with the beginning of the earnings season.
For the Bank Nifty outlook, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, notes a continuing struggle between bulls and bears, resulting in the index hovering around the 44,500 resistance level. This situation underscores the prevailing uncertainty and indecision among market participants. Shah suggests that the index is currently moving within a broad trading range, bounded by support at 44,000 and resistance at 45,000. However, despite this range-bound movement, the overall market sentiment within this range remains bullish, with investors eager to buy on dips.
Global Market Factors
Analysts are observing a rapidly evolving market scenario. The market is currently showing a risk-on sentiment, partly driven by the hope that the Israel-Hamas conflict will remain contained. Furthermore, the future direction of interest rates is anticipated to be clarified during the upcoming speech by the Fed chair on October 19th.
Stocks to Watch Today
Several major companies, including Wipro, Bajaj Auto, IndusInd Bank, Bandhan Bank, Polycab, Shopper’s Stop, Persistent Systems, LTIMindtree, Titagarh Rail Systems, UTI Asset Management Company, and others, are scheduled to announce their July-September quarter results for fiscal 2023-24 (Q2FY24) today.
Additionally, Bajaj Finance, Larsen & Toubro Tech Services, Tata Elexsi, Happiest Minds, ICICI Prudential Life Insurance, and Hathway Cable & Datacom Ltd are expected to be in the spotlight during today’s session, as these companies already declared their Q2FY24 results post-market hours on Tuesday.
Futures and Options Ban List
In the futures and options (F&O) segment, the National Stock Exchange (NSE) has placed a ban on ten stocks for trade on Wednesday. These stocks include Balrampur Chini Mills, BHEL, Delta Corp, GNFC, Hindustan Copper, Indiabulls Housing Finance, India Cements, Manappuram Finance, MCX, and SAIL.
Day Trading Stock Recommendations for Today
For those interested in intraday trading, three stock market experts have offered their recommendations:
Ganesh Dongre (Senior Manager – Technical Research at Anand Rathi) Recommendations:
1 – Buy Bank of Baroda at ₹207.50 with a stop loss at ₹201 and a target price of ₹217.
2 – Buy Bharat Petroleum Corp Ltd (BPCL) at the current market price with a stop loss at ₹346 and a target price of ₹360.
Sumeet Bagadia (Executive Director at Choice Broking) Recommendations:
- Buy Britannia at ₹4,600.35 with a stop loss at ₹4,510 and a target price of ₹4,790.
- Buy PVR Inox at ₹1,760.65 with a stop loss at ₹1,680 and a target price of ₹1,920.
Ashish Katwa (Technical Analyst, Bonanza Portfolio Ltd) Recommendations:
- Buy Rashtriya Chemicals & Fertilizers (RCF) in the range of Rs.140.50-139.50, with a target of Rs.150 and a stop loss at Rs.135.
6 – Buy Dilip Buildcon Ltd (DBL) in the range of Rs.333.40-₹332, with a target of ₹357 and a stop loss at ₹321.
Please remember that these recommendations are for intraday trading and should be approached with care and a well-defined risk management strategy.
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