Stock Pick for Monday, October 04, 2021

In the previous session, the market traded in a narrow range and closed the day with a net loss of 86 points. The Nifty index saw a negative opening in the morning and traded in the range-bound throughout the day. Technically, the Nifty index made a Doji candle on the chart which indicates indecision in the market. Traders should be focused on the ‘buy on dips’ strategy for the next trading day.

Indian Stock Market will open positive. Technically, the Indian Stock Market is still in the negative zone. The market would enter into the positive zone once it closes above 17698 for Nifty and 37734 for BankNifty. The market would see some short-covering today but traders should go short at every positive rally until Nifty holds below EquityPandit’s predicted reversal levels. Once the market closes above 17698 for Nifty and 37734 for BankNifty then traders should close all short positions and initiate fresh long positions.

Following stock looks technically strong and traders can accumulate the stock at dips in the market.

Piramal Enterprises (NS:PIRA) Ltd


NSE: PEL BSE: 500302 Sector: Pharmaceuticals

On the daily time frame, we can see that in an ongoing trend the stock was in a correction phase for a few days. On the last trading day, Stock closed with a bullish candle near 2655 levels. The stock formed a Bullish Engulfing candle on the chart.

As per Band Bollinger indicator, Prices are comfortably closed above the Middle Bollinger Band which is a sign of bullishness for the coming session as long as the lower Band is intact on the downside. The Relative Strength Index (RSI) on the daily chart is 52.22, which shows the strength in upward momentum.

In short, the trend for PEL looks to be positive for now. We can expect it to reach a target of 2700/2850 levels based on our analysis. Add more on dips around 2600 levels. This outlook is valid as long as we do not see any closing below lower Band Bollinger.