Top Two Stocks to Watch Today – 29 September, 2023

Nifty lost all of its previous day’s gains and broke below the 21-day EMA (exponential moving average at 19,723) as well as the 50-day EMA (19,559) as bears gained strength, forming a sizable bearish pattern on the daily chart with above-average volumes. This indicates that negative sentiment may prevail in the coming days.

Nifty opened higher, reaching an intraday high of 19,767, but lost all its gains after the initial hour of trading, dropping to a daily low of 19,492. Nifty finally managed to settle above the 19,500 mark, down 193 points at 19,523. This drop was primarily due to a spike in oil prices, which posed a threat to inflation and the operating performance of companies.

Here are the top two stocks to watch out for: 

1. Larsen & Toubro Ltd

This stock is the only one that gained over 1% in the Nifty, surviving the significant fall. It has broken out of a 12-day flat base pattern with higher volume and closed at a new high, trading above all long and short-term averages. It is currently 10.21% above the 50 DMA and 5.03% above the 20 DMA. The MACD has given a fresh bullish signal, and the RSI is in the strong bullish zone. The Elder’s impulse system has formed a bullish bar, and the stock is above the Super Trend indicators. The KST and the TSI indicators are in a bullish setup. In short, the L&T stock has registered a breakout. A move above Rs. 3,010 is positive for the stock, and on the higher side, it can potentially reach levels of Rs. 3,060-3,075.

2. Oracle Financial Services Software Ltd (OFSS)

OFSS stock closed below the prior support and the previous resistance, forming a sizable bearish candle. This marks the formation of the fourth sizable bearish candle in the last 12 days. It is currently below the 20 DMA, and the Bollinger bands are contracting. The MACD is in a bearish mode, and the RSI is about to shift its range into the bearish zone. The KST and the TSI indicators are in a strong bearish setup, and the Elder’s impulse system has formed a strong bearish bar. Additionally, it is below the Super Trend indicators. In short, the stock has broken a key support level. A move below Rs. 4,065 is negative, and the next support is seen at Rs. 3,925.

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