Top Two Stocks to Watch Today – 10 October, 2023

Equity indices erased all gains from the previous session and snapped a two-day winning streak as investors remained concerned about escalating geopolitical tensions in the Middle East.

Investors dumped equity assets as they turned risk-averse, given concerns that a face-off between Israel and Hamas could further harm the global economy, which is already grappling with higher interest rates and stubbornly high inflation. There are concerns that since most oil-producing nations are close to the conflict zone, a prolonged war could trigger a surge in international crude oil prices. A fresh surge in crude oil prices could lead to a higher oil import bill, stoking domestic inflation and prompting the central bank to adopt a hawkish stance.

Here are the top two stocks to watch on Tuesday:

ACC (ACC) – Rs 196

The ACC stock witnessed a breach of the trendline connecting subsequent lows from the August 16 swing low. It formed a sizable bearish candle and declined below the 61.8% retracement level of the prior uptrend. Additionally, it is trading below all key moving averages. The 14-period daily RSI has marked a fresh swing low, which is negative for the stock. The MACD histogram shows an increase in bearish momentum, and the -DI line is trading above the ADX and +DI. Going forward, a move below the level of Rs 1955 is considered negative, with the next support level seen around Rs 1925.

HDFC Life Insurance Company (HDFCLIFE) – Rs 614

The HDFC Life Insurance company stock breached its important horizontal trendline support and formed a bearish candle. It is trading below its 20- and 50-DMAs. The Elders Impulse system has generated a strong bearish signal, and the RSI has declined below the 40-mark. The MACD histogram shows an increase in bearish momentum. In short, the stock is exhibiting a bearish trend, and therefore, a move below the level of Rs 613 is considered negative, with the possibility of testing the level of Rs 603.

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.