Trade Call: 2 Stock Picks By Sumeet Bagadia On Tuesday, 20th Feb

Amidst a tumultuous global market, Indian equity indices ended the trading session on a bullish note on February 19, with Nifty reaching a new all-time high of 22186.65. The Nifty climbed by 81.60 points, or 0.37 per cent, to end at 22,122.30, while the Sensex saw a gain of 281.52 points, or 0.39 per cent, to conclude at 72,708.16.

The volatility index, or India VIX saw a 5.22 percent intraday jump before closing at 16.0175, indicating elevated market volatility. Grasim Industries, Bajaj Finserv, Bajaj Auto, Bharti Airtel, and Cipla were the top gainers on the Nifty, while Coal India, SBI Life Insurance, L&T, Wipro, and HDFC Life were the top losers.

Nifty's support at higher level firms up as it Hits a New Peak

Mr. Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said Nifty shrugged off its initial weakness and rose steadily throughout the day, making an all-time high of 22,187 before closing at 22,122, up 82 points.
The Foreign Portfolio Investors (FPIs) Long-Short ratio rose from 36.47% on 15th February to 38.24% on 16th February as the FPIs were seen steadily building long positions in Index futures.

Nifty closed near the previous all-time high level of 22,125. Nifty took resistance around these levels twice previously. Call writers (Bears) exit along with put writers' (Bulls) entry was seen at the 22,000 Strike in Nifty. This is considered as a sign of support getting stronger. The level of 22,000 which acted as a resistance earlier is likely to act as a support now. The option activity at 22,200 Strike will provide cues about Nifty's Intraday direction tomorrow.

Bank Nifty rose steadily throughout the day to close at 46,536, up 151 points. Strong Bull activity (put writing) was observed at the 46,500 Strike in Bank Nifty. The put writers (Bulls) have dethroned the call writers (Bears) at the 46,500 in the Index. The resistance for Bank Nifty now shifts to 47,000 Strike and the option activity at this strike will provide cues about Bank Nifty's future direction.

Strong Broader Markets help Nifty scale Historic High

Mr. Om Mehra, Technical Analyst, SAMCO Securities said Nifty soared to an all-time high of 22,186.65 and closed at 22,122.25, marking a gain of 0.37%.

The Nifty Consumer Durable and Pharma sectors led the upward trend, while the Realty sector declined. Participation from midcaps in broader markets was crucial in pushing the Nifty index higher.

In the last three sessions, Nifty exhibited an interesting pattern of opening with gaps and consistently respecting these gaps as support. The hourly chart reveals a series of higher highs and higher lows, indicating a positive trend. The short-term 20-day (EMA) served as robust support around the 21,900 level. The Relative Strength Index (RSI) climbed steadily reaching 62 levels. The daily Upper Bollinger Band highlighted 22,300 as the immediate resistance. Market breadth remained positive, with most stocks trading above the 50-day SMA in the Nifty 200 indices.

Bank Nifty concluded at 46,535.50, registering a marginal gain of 0.32%. The MACD indicators maintained a neutral to positive stance. The Index is trading above the 20-day SMA. If broken, a critical resistance level remains at 46,900, which might initiate a next upside rally. The volume profile analysis identified 46,000 as a strong support level for the upcoming trading sessions.

Stocks To Buy Today

On Tuesday, February 20, Choice Broking's Executive Director Sumeet Bagadia suggested investing in shares of Inox Wind and Bayer CropScience.

Inox Wind

Buy INOXWIND in cash @ 635.2 SL 618 TGT 674

The analysis suggests a positive outlook for INOXWIND based on the daily chart. The stock has shown a consistent higher high and higher low pattern over the past 05 days, with a recent breakout above the neckline indicating a potential upward movement. The increase in trading volume and the stock trading above the Volume Weighted Average Price (VWAP) for short term is 559.05 further supports a bullish scenario.

Additionally, INOXWIND is trading above its 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given these factors, the recommendation is to buy INOXWIND in cash at the current market price (CMP) of 635.2, targeting 674, with a stop-loss at 618.

Bayer CropScience

Buy BAYERCROP in cash @ 6100 SL@ 5930 TGT @ 6320

BAYERCROP is currently trading at Rs 6099.95. A buying opportunity is recommended for BAYERCROP in cash at Rs 6100, with a stop-loss (SL) set at Rs 5930 and a target (TGT) price of Rs 6320. The stock's Relative Strength Index (RSI) stands at 61, indicating a favourable buying signal.

In terms of moving averages, BAYERCROP is currently trading above key levels, including the 20-day, 50-day, 100-day, and 200-day exponential moving averages (EMA). This suggests a strong bullish trend and further supports the buying recommendation.

Additionally, a bullish candlestick pattern is observed, adding to the positive technical outlook for BAYERCROP. This pattern typically indicates a potential upward price movement.

In conclusion, BAYERCROP presents a compelling buying opportunity, supported by its RSI, moving averages, and bullish candlestick pattern. Investors are advised to consider these technical factors when evaluating their investment decisions.

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.