Top Two Stocks to Watch Today – 06 October, 2023

Nifty opened above 19,500 and extended gains to touch a high of 19,576 but remained range-bound for the rest of the day. Nifty closed at 19,546, up 0.50% from the previous day.

Nifty made a smart recovery after two days of selloff amid widespread buying as a drop in crude prices and a dip in US yields helped the index reclaim the level of 19,500.

On the daily chart, a candle with a small body and shadows on both sides appeared, achieving higher highs and higher lows compared to the previous day’s candle formation.

Here are the top two stocks to keep on your watchlist:

Dalmia Bharat (DALBHARAT) – Rs 2,261

The dalmia bharat stock has formed a double-top pattern. On an intraday basis, it declined below the neckline of the double-top pattern; however, recovery in the later part helped it to close above the neckline point. The higher volume decline shows strong distribution. The stock is below the 20 DMA and closed in the moving average ribbon. The MACD shows a strong bearish momentum. The RSI is below the prior low and in the neutral zone, approaching the bearish zone. The Elder’s impulse system formed two strong bearish bars. The stock closed below the Anchored VWAP support. The KST and the TSI are in bearish mode. In short, the stock is at a crucial support level. A move below Rs. 2,235 is negative.

Tata Communication (TATACOMM) – Rs 1,849.50

The tata communication stock has breached the double-top pattern. It closed below the 20 DMA. The Bollinger bands began to expand after tight contraction. It closed in the moving average ribbon. The MACD is showing a bearish momentum. The RSI has declined below the prior low. The Elder impulse system has formed strong bearish bars. The KST and the TSI are in bearish mode. The Stochastic RSI also gave a sell signal. In short, the stock has registered a bearish breakout. A move below Rs. 1,850 is negative.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.