Analyst's picks: BPCL, ICICI Lombard among top three stocks to buy today

Chandan Taparia of Motilal Oswal says BPCL share price has broken out of a falling supply trendline on the daily chart with high volumes, supporting positive outlook.

Nifty share price today

  The Nifty index opened on a negative note on Tuesday (Nov 4) and, after the initial attempt towards 25,800-mark, it failed to hold at higher levels and drifted lower throughout the day. It sunk to 25,578 levels and closed with losses of around 170 points.  The session witnessed swings within a range and despite intermittent buying, near-term selling pressure was intact. It formed a 'bearish candle' on the daily frame and continues to form 'Lower highs – Lower lows' from the last four sessions. Now, till it holds below 25,700, weakness could be seen towards 25,500, then 25,350 zones, while resistances have shifted lower to 25,800, then 25,950 zones.

 

 

On the options front, Maximum Call OI is at 26,000, and then 25,800 strike, while Maximum Put OI is at 25,000, and 25,200 strike. Call writing is seen at 26,000, and 25,700 strike, while Put writing is seen at 25,200 and 25,250 strike. Option data suggests a broader trading range in between 25,100 to 26,000 zones, while an immediate range between 25,400 to 25,800 levels.

 

Bank Nifty share price

Bank Nifty index opened marginally lower, near 57,950 zones, but remained quite choppy in a narrow range of 250 points - between 57,800 to 58,050 zones for most part of the session. It formed an 'Inside Bar' pattern on the daily scale as momentum is missing on either sides.  However the index is hovering near its 10-DEMA as multiple supports are intact at lower zones. Now, it has to hold above 57,750 zones for an up move towards 58,350, followed by 58,577 levels, while downside support is seen at 57,750, followed by 57,500 zones.

Stocks to buy today, November 6:

 

Buy BPCL | CMP: ₹373 | Stop Loss: ₹360 | Share price target: ₹400

 

BPCL share price has broken out of a falling supply trendline on the daily chart with high volumes. The MACD indicator is rising, which confirms the positive momentum.    

 

Buy ICICI Lombard General Insurance | CMP: ₹2,040 | Stop Loss: ₹1,975 | Share price target: ₹2,170 

 

ICICI Lombard share price has formed a bullish "Pole & Flag" pattern on the daily chart, suggesting a continuation of the uptrend. The RSI indicator is rising to confirm the bullish momentum.     

 

Buy DELHIVERY | CMP: ₹485 | Stop loss: ₹470 | Share price target: ₹520        

 

Delhivery share price is on the verge of a breakout from a consolidation zone and is respecting its 50-DEMA support zones. The ADX line is rising, which confirms the strength of the uptrend.