Trade Call: 2 Stock Picks By Sumeet Bagadia On Thursday, 22nd Feb

Indian indices lost six days of gains on Wednesday as they were unable to sustain their upward trend. The Nifty dropped 142.00 points or 0.64 per cent to close at 22,055, while the Sensex plummeted 434.31 points or 0.59 per cent to 72,623.09 at the closing. On the Nifty, Tata Steel, SBI, JSW Steel, Sun Pharma, and IndusInd Bank were the top gainers, while the biggest losers were BPCL, Coal India, Wipro, Power Grid Corp, and NTPC. All sectoral indices have moved down, with the exception of real estate, PSU Bank, FMCG, and metal. Signals for BSE Midcap and Smallcap dropped by 1.27% and 0.84%, respectively.

Nifty Outlook

Rupak De, Senior Technical Analyst, LKP Securities said, "The Nifty has formed a bearish engulfing pattern on the daily chart, indicating a potential pause in the ongoing rally. The momentum indicator RSI is showing a bearish crossover, signaling weakness in the near term. Immediate support is positioned at 22,000; a decisive drop below this level could lead the index towards 21,700. On the upside, resistance is identified at 22,160."

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "The BankNifty index experienced a volatile trading session during the weekly expiry and encountered resistance around the 47300 levels. Currently stuck in a broad range of 46500-47500, the index faces limitations on further upside until it surpasses the 47300 mark. The immediate support stands at 46800, and a breach below this level could intensify selling pressure, potentially pushing the index towards 46500."

Stocks To Buy Today

On Thursday, February 22, Choice Broking's Executive Director Sumeet Bagadia recommended buying shares of Tejas Networks and Marico.

Marico

Buy MARICO in Cash @ Rs 538.70, stop-loss: Rs 527, target: Rs 565

The stock is currently trading at 538.70 levels. The stock has bounced back from the strong support of 527 levels which is also close to its 20 and 50 Day EMA levels. Currently stock is trading above all the important moving averages. On daily charts the stock has formed a strong green candle which indicates bullishness in the stock. Now any dip in the stock around 533 levels will be a buying opportunity.

A small resistance can be witnessed near 547 levels, and once stock crosses the mentioned level MARICO can now further move towards 565 levels and higher. The investors holding from lower levels should keep trailing stop loss.

According to the aforementioned technical analysis, we advise buying MARICO at CMP of 538.70 for the target of 565. If the stock closes below 527, our analysis will be invalid.

Tejas Networks

Buy TEJASNET in cash @ Rs 750.50, stop-loss: Rs 724, target @ Rs 800

Tejas Networks Limited (TEJASNET) is currently trading at Rs 750.50, with the Relative Strength Index (RSI) at 46. The stock has demonstrated a strong recovery from lower levels and has consolidated within the range of Rs 760 to Rs 740. Currently, TEJASNET is experiencing volume-based buying, indicating increased investor interest in the stock.

The stock is supported by the 20-day Exponential Moving Average (EMA), further bolstering its bullish outlook. Notably, the Rs 760 level is acting as a significant resistance, and a breach of this level could signal a target price of Rs 800.

Given the technical setup, a buying opportunity is suggested for TEJASNET at the current price of Rs 750.50, with a stop-loss set at Rs 724. This trade setup offers a favourable risk-reward ratio, with the potential for a target price of Rs 800.

In summary, TEJASNET's recovery, consolidation, and volume-based buying indicate a positive trend. Investors looking to capitalize on this momentum may consider buying TEJASNET with a target of Rs 800, keeping a watchful eye on the resistance at Rs 760.

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.