Market Updates : Stocks to Buy and Sell on 04 October 2013

The BSE benchmark rallied more than 400 points in intraday trade on Thursday, driven by broad based buying and rupee appreciation. The Sensex rose 384.92 points or 1.97 percent to close at 19902.07, and the Nifty advanced 129.65 points or 2.24 percent to 5909.70. 

◘ US Markets:

Markets finished broadly lower with the Dow closing below the psychologically-important 15000 mark. Trading was jittery as speculation circulated that the US could now face a worst case scenario, where Congress fails to address the debt ceiling and the country defaults. A jarring warning from treasury predicting a catastrophic outcome if that happens added to the nervousness. The market recovered some of its losses around midday when house speaker John Boehner was reported to have told Republicans that he is determined to prevent a default and is willing to pass a measure through a combination of votes if need be. But then stocks dipped again on reports the Capitol building was under lockdown due to a shooting event, the situation was brought under control though.

◘ Asian Markets: Nikkei, Hang Seng down.

Asian markets were trading weak on Friday.
Hong Kong's Hang Seng shed 0.67 percent or 154.48 points at 23,059.92.
Japan's Nikkei slipped 1.14 percent or 161.79 points at 13,995.46.
Singapore's Straits Times was down 0.21 percent or 6.65 points at 3,138.14.
South Korea's Seoul Composite fell 0.61 percent or 12.16 points at 1,987.31.
Taiwan's Taiwan Weighted shed 0.20 percent or 16.72 points at 8,342.30.
Shanghai Composite shut today.

◘ European Markets:

European markets closed mixed The euro trades above 1.362 against the dollar, within striking distance of its 2013 peak of 1.37. Pushing higher for a second session as the dollar remains pinned at 8-month lows.

Sure shot stocks to buy Today on 04th October'2013

√ Larsen and Toubro

Buy Larsen and Toubro, Target Rs 880 and Stoploss Rs 805

Rationale: Larsen and Toubro (L&T) has recently done a short-term correction. It has retraced 50 percept of the previous rise. In terms of wave structure, here on fresh set of impulse is expected to form on the upside which would mean significant upside potential for the counter from short-term as well as medium-term perspective. In the last session, the stock has moved above its crucial daily moving average.

√ Petronet LNG

Buy Petronet LNG, Target Rs 128 and Stoploss Rs 118

Rationale: After a multi-month fall, Petronet LNG is forming a large inverted head and shoulders pattern, which is a basing pattern. Currently, right shoulder of the pattern is in formation. The stock is a good buying candidate from trading perspective as well as from investment point of view. Short-term as well as medium-term momentum indicators are in bullish mode.

√ ITC

Sell ITC October futures at current market price, Target Rs 330 and Stoploss Rs 348.50

Rationale: Fast moving consumer goods (FMCG) counters like ITC is trading in some kind of narrow range and some kind of negative crossover was seen on daily charts. So it is quite possible that some kind of lower levels up to Rs 330 could be expected soon.

√ NTPC

Sell NTPC October futures, Target Rs 140 and Stoploss Rs 148

Rationale: Despite of good bullish momentum in the market, it is quite possible that some stocks like NTPC is not showing strength on the upside. So it is quite possible that some kind of lower levels could be expected soon in this counter.

√ TCS

Buy TCS at current level, Target Rs 2080 and Stoploss Rs 1985

Rationale: It has a good breakout happening yesterday.

√ Cairn India

Buy Cairn India, Target Rs 338 and Stoploss Rs 321

Rationale: Cairn India was quoting below the 20 day moving average (DMA) for quite some time and yesterday it sprung back and closed above it.

Other Stocks to buy today are Bank of India, Voltas, tech Mahindra, Century Textile, BPCL.