In the previous session, the market saw more corrections from yesterday’s levels. The Nifty index opened on a flat note but soon slipped into a negative territory. The index witnessed selling pressure throughout the day and closed with a net loss of 152 points. Technically, the index formed a lower lows and lower highs formation on the chart. At the same time 14 days RSI is in the overbought zone and showing negative divergence against the price. The Nifty index managed to close above 18250 levels which will now act as immediate key support for the index. Break below this level will invite incremental weakness. The stock specific action will continue in the market, hence, traders are advised to keep focusing on such theory.

Look at the below research report of ‘Stocks to Buy for – Thursday, October 21, 2021’ before the market opens.

Piramal Enterprises Ltd

NSE :PEL   BSE :500302  Sector : Pharmaceuticals

As the market is in the correction mode, it is the best time to follow the ‘Buy on Dips’ strategy for quality stocks. We have shown a daily chart of PEL Ltd. As per chart analysis, Ichimoku Cloud is acting as a very good support for the stock. The important thing to witness is that previously stock took the same support of ichimoku cloud in different time intervals and after that every time we have seen a decent upside rally in the stock. Now again the cloud would act as perfect support and we could see movement in upward direction.Along with this, stock is comfortably moving above the trend line support. Also stock closed above the 50 EMA support which indicates positive momentum in coming days.

In short, PEL Ltd. looks to be at a crucial juncture but with bullish up move expecting. Add some quantity of PEL Ltd. in your portfolio at the current level. Use dips as a buying opportunity to move towards 2830/2990 levels. Traders can add more quantity once a positive candle will close above the 50 EMA support. This outlook is valid until we don’t see any closing below 2518 level.

Check More Analysis on PEL at: Piramal Enterprises Ltd