Stocks to buy: On Monday, September 9, Indian stock market benchmarks the Sensex and the Nifty 50 finished with strong gains. The Sensex closed at 81,560, rising by 376 points, or 0.46%, while the Nifty 50 increased by 84 points, or 0.34%, ending at 24,936.40.
“The domestic benchmark indices opened on a negative note, in line with global cues. The Nifty started the day flat to negative and witnessed selling pressure in the first half. However, the index absorbed the weakness and rebounded in the second half, leading to a positive close at 24,936. The volatility index, INDIA VIX, cooled off by 6.43%, settling at 14.24, signaling a drop in market volatility. Technically, the index found support near the 34-DEMA, which is placed around the 24,720 level, and witnessed a pullback, leading to the formation of a green candle on the daily scale. However, the index is still positioned below the trend line resistance, which is around the 25,100 level. In the short term, any bounce near 25,100 should be seen as an opportunity to book profits.
Bank Nifty opened on a negative note on Monday but, after initial volatility, the index recovered and settled the day on a positive note at 51,118. Technically, on the daily scale, the index formed a piercing line candle, indicating strength. If the index manages to hold today’s low of around 50,370, a pullback rally towards 51,500-51,800 could be possible in the short term,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.
Brokerage firm Anand Rathi has picked two stocks -Cochin Shipyard and Clean Science & Tech – as Emerging picks for the month of September.
Stocks to buy
Cochin Shipyard: Buy at ₹1950 | Target Price: ₹2165/ 2240 | Stop Loss: ₹1790
COCHINSHIP has been on a corrective mode since almost 3000 mark and recently went towards 1800 level. The stock was in red for eight consecutive weeks and now finally we are witnessing a reversal. There is a reversal candlestick pattern too on the daily chart which indicates possibility of pullback. Thus, we advise traders to go long in the stock in the range of 1950 – 1930 with a stop loss of 1790.
Clean Science & Tech: Buy at ₹1500 | Target Price: ₹1695/ 1760 | Stop Loss: ₹1370
Few weeks back, CLEAN confirmed a breakout above 1500 from bullish Cup and Handle pattern on weekly scale. After some upside, the stock has retested the breakout zone and has reversed from there. The support coincides with the placement of Ichimoku Cloud on weekly scale. Thus, we advise traders to go long in the stock in the near 1500 with a stop loss of 1370.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
