Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Monday, 13th Nov

On Friday, Nifty ended with marginal gains of 30 points at 19425 levels after kicking off with a negative note. Nifty had a successful Samvat 2079 in spite of weak global cues. On November 12, investors showed strong buying intent on Dalal Street in honour of Diwali, as the BSE Sensex gained 354.77 points, or 0.55 per cent, to close at 65,259.45.

At 19,525.55, the broader NSE Nifty 50 index climbed by 0.52 per cent, or 100.20 points. Monday's GIFT Nifty shows that the Indian benchmark indices are off to a good start as the results session ends and Asian markets rise. Meanwhile, Monday's crude oil prices are down.

Market Outlook

Aditya Gaggar, Director of Progressive Shares said, "Nifty50 has been stuck in the range, unable to breach the immediate resistance of 19,450 while the downside is covered at a strong support zone of 19,270-19,310. Once the Index breaches its nearest resistance, it will open doors for 19,560. BankNifty replicates Nifty50 with the higher side being capped at 43,960 while the downside is guarded at 43,360, post the resistance breakout, it will soar higher towards the next hurdle of 44,600. The Energy sector has given a breakout from the Bullish Flag and Pole formation which signifies continuation of current uptrend (OMC's stocks are on the verge of a major breakout- one should keep an eye on all of them, Tata Power- Forming an Inverted Head & Shoulder pattern)."

"Snake in the grass kind of movement was seen in the Infra sector and now is all set to give a breakout from continuation pattern known as the Descending Broadening Wedge pattern and post the breakout, one can expect an outperformance (ITD Cementation and Welspun Enterprise- Flag and Pole Breakout). Couple of Metal stocks are indicating a breakout from Flag and Pole formation in the sector (Jindal Stainless- Pennant and Pole Breakout, Jindal Steel and Tata Steel- Reversed from the lower end of the rising channel with support of 50WMA, and NMDC- Fresh Breakout). A much-awaited Flag and Pole formation breakout in the Pharma sector can be expected in the upcoming week while many of its components have already given a strong breakout with a considerable volume (Alkem and IPCA Labs- Rounding Bottom Breakout, Cipla, Gland, and Sun Pharma- Flag and Pole Breakout). A couple of stocks from the Mid and Smallcap segments have given a strong breakout and some of them are Carysil (Inverted Head and shoulder Breakout), Fortis Healthcare (Pennant and Pole Breakout), and Tata Elxsi (Cup and Handle Breakout)," he further added.

Stocks To Buy Today

On Monday, November 13, Sumeet Bagadia, executive director of Choice Broking, recommended trading in two stocks.

Jindal Steel And Power

Buy JINDALSTEL in cash @ Rs 636.9, stop-loss: Rs 615, target: Rs 688

JINDALSTEL, currently trading at Rs 636.9, has recently experienced a bullish reversal, forming new higher lows with substantial trading volumes. This trend indicates a positive momentum shift in the stock. Moreover, JINDALSTEL is currently trading above critical Exponential Moving Averages (EMAs), particularly the 200-day EMA, underscoring its bullish momentum and suggesting the potential for further upward price movement.

The Relative Strength Index (RSI) stands at 46.5 and is on an upward trajectory, signifying an increase in buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) is displaying a positive crossover, further supporting the bullish outlook. The combination of these technical indicators suggests that JINDALSTEL may have the potential to reach a target price of Rs 688 in the near term.

To effectively manage risk, it is prudent to set a stop-loss (SL) at Rs 615. This precautionary measure helps protect the investment in case of unexpected market reversals or adverse developments. Overall, considering the technical analysis and current market conditions, JINDALSTEL presents a promising buying opportunity for those targeting a Rs 688 price level, provided that sound risk management measures, including the suggested stop-loss, are implemented.

BHEL

Buy BHEL in cash @ 129.05, stop-loss: Rs 126, target: Rs 134

BHEL, presently trading at 129.05 levels, exhibits a positive technical outlook. The stock is fortified by a robust support level around 126, aligning with the 20-Day Exponential Moving Average (EMA). This convergence enhances the stock's stability and reinforces its potential for upward movement.

Currently, BHEL is trading above all important moving averages, indicating strength in its current trend. This is often considered a positive signal by technical analysts.

The Relative Strength Index (RSI), a momentum indicator, is comfortably trading around 56 levels. This RSI reading suggests a moderate level of strength in the stock, indicating that it is not excessively overbought and has room for potential further upward movement.

A minor resistance is observed near 130.5 levels. If the stock successfully surpasses this resistance, it may advance towards the target level of 134 and beyond. This represents a potential opportunity for investors and traders.
Based on the above analysis we recommend buying BHEL at CMP of 129.05 with a stop loss of 126 for the targets of 134.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.