Trade Call: Sumeet Bagadia Recommends 2 Stocks To Buy/Sell Dec 1, Friday

S&P Global Rating upgraded India's GDP growth estimate for FY24 to 6.4% from 6.0% on Thursday which triggered benchmark Indian indices to wrap the tumultuous November 30 expiry session higher. The Nifty surged 36.60 points, or 0.18 per cent to close at 20,133.20, while the Sensex gained 86.53 points, or 0.13 per cent to settle at 66,988.44. Among the top Nifty gainers were UltraTech Cement, HDFC Life, Sun Pharma, Apollo Hospitals, and Bharti Airtel; losers were IndusInd Bank, Adani Enterprises, Adani Ports, Reliance Industries, and LTI Mindtree. The broader market ended on a positive note, as BSE Midcap index ended with 0.83% gain and BSE SmallCap ended 0.96% higher.

Market Outlook Today

Aditya Gaggar Director of Progressive Shares said, "With an extreme swing on both sides, Nifty50 settled the monthly expiry day higher at 20,133.15 with gains of 36.55 points. Sector-wise, Realty and Pharma were the outperformers; and on the flip side, PSU Banking sector was the major laggard. The interest of the market participants was more towards the broader markets as Mid and Smallcap ended the session with gains of 0.68% & 1.14% respectively and outperformed the Frontline Index. In the higher top higher bottom formation, the index has made a bullish candle which suggests that a fresh could be seen in the coming days."

Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities said, "The sharp upside rise seen in India's second-quarter GDP figure underlines the fact that the economic growth has come on the back of robust domestic demand. Another encouraging takeaway of this development is that the broad pick up in the economy comes mostly from the non-agricultural sectors like manufacturing, mining, electricity and other key infrastructure sectors.

Markets have already priced in these sectors' better-than-expected performance. Going ahead, companies in these sectors like cement, steel, capital goods, metals and other infra-related sectors will have to report consistency in their performance for the robust mood to prevail. Growth based on domestic demand also points to the fact that India economy will continue to grow in future despite global economy slowing down. And hence, Indian economy will also continue to attract foreign capital inflows and will carve out for itself a different category among the emerging market (EM) peers."

Nifty Outlook

Rupak De, Senior Technical analyst at LKP Securities said, "Nifty ended close to the day's high on a choppy expiry day. The sentiment remains strong as long as it stays above 20000 since the Put writers at the 20000 strike will defend this level moving forward. The sentiment might weaken only if there's a drop below 20000; until then, the buy-on-dips strategy is likely to stay prevalent. On the higher side, 20200-20230 acts as a resistance zone. If breached, the index could potentially move towards 20450-20500."

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "Nifty opened with a gap up and came under intense selling pressure before staging a remarkable recovery to end at 20,133, up 37 points. The Futures Open interest (OI), however, indicated buildup of fresh long positions in Index futures for three consecutive days. The Long-Short ratio moved from 24% on 28th November to 28.85% on 29th November as the Foreign Portfolio Investors (FPIs) increased their exposure to longs in Index futures. Call writers exiting and put writing was observed at 20,000 Strike in Nifty for the second consecutive day, which led to a stronger recovery on Intraday basis. Nifty has formed a hanging man candle on the daily chart today. The option activity at 20,200 Strike will set the tone for the next leg of rally in the Index."

Om Mehra, Technical Analyst, SAMCO Securities said, "Nifty gained 5.18% in November month and formed a bullish candle that has engulfed its previous four months candles while on a daily basis it exhibited unwavering bullish momentum, concluding the session on Thursday at 20,133.15 with a 0.18% intraday gain. Positive strength is indicated by a bullish crossover of the 20EMA crossing the 40EMA on the daily chart. Notably, Nifty midcap and small-cap s continue to set new 52-week highs. As of now, Nifty is trading above all the significant moving averages, and unless it closes below 19,840, this momentum is probably going to continue. Surprisingly, despite the prevailing bullish rally, the INDIA VIX closed under 13, underscoring a sense of confidence and stability in the ongoing trend."

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "The Bank Nifty index experienced heightened volatility on the last day of the monthly expiry, navigating a broad trading range. Facing immediate resistance at 44700, a level associated with a previous correction, a breakout above this point is anticipated to trigger additional short-covering moves towards 45000. The lower end support is situated at the 44300-44200 zone, acting as a supportive cushion for the bulls."

Om Mehra, Technical Analyst, SAMCO Securities said, "With a 0.19% loss, Bank Nifty concluded the session at 44,481.75. The 50 SMA, which is positioned at 43,950, would be acting as support while resistance is placed at 45,050. PSU Bank sector witnessed some profit booking at higher levels which is impacting Bank Nifty's performance."

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "Bank Nifty ended an extremely volatile session at 44,482, down 85 points. Strong call writing was observed at 44,500 Strike in Bank Nifty. The maximum call open interest is placed at 44,500 Strike and option activity at this strike will provide cues about Bank Nifty's Intraday direction."

Stocks To Buy Today

On Friday, December 1st, Choice Broking's executive director Sumeet Bagadia recommended purchasing 1 IT and 1 NBFC stock. Here are the entry price, stop loss, and target price for Wipro and Tata Investment Corporation.

Tata Investment Corporation

Buy TATAINVEST in cash @ 4237.35 SL @ 4080 TGT 4580

TATAINVEST is currently trading near Rs 4237.35. The stock recently reversed from a support level and formed a morning star candlestick pattern on the daily chart, accompanied by a significant increase in trading volume. The price is forming new higher lows, suggesting that the bullish trend is likely to continue.

If the price manages to close above the Rs 4300 level, it may have the potential to reach near-term targets of Rs 4580 in the short term. On the other hand, immediate support levels can be found at Rs 4080.

The Relative Strength Index (RSI) is currently at 70.29 and is trending upward, indicating increasing buying momentum. The Average Directional Index (ADX) is at 39.6, further supporting the idea of a bullish trend. Additionally, the price is trading above the 50, 100, and 200-day Exponential Moving Averages (EMA), suggesting bullishness in the stock.

To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 4080. These precautions will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and current market conditions, TATAINVEST appears to offer an attractive buying opportunity. Consider buying on price dips around Rs 4150 levels for those targeting Rs 4580 price targets, provided that appropriate risk management measures are in place.

Wipro

Buy WIPRO in cash @ 413.05 SL 404 TGT 425.

The stock is displaying signs of resilience and potential upward momentum. Its ability to rebound from the robust support range of 404 levels which is also close to its 200 Day EMA levels indicates a considerable amount of buying interest at that price. Investors appear willing to purchase the stock at these levels, which can provide a foundation for potential price appreciation.

Furthermore, the stock's current position above crucial moving averages is another positive signal. When a stock trades above its moving averages, it often indicates an upward trajectory and suggests that it is in an uptrend. This can boost investor confidence, as it implies that the stock has strong support and is trading in a technically favourable position.

The Relative Strength Index (RSI) reading of around 67 further reinforces the positive outlook. An RSI at this level suggests strength and also room for further upward movement. This can be interpreted as a favourable condition for potential price gains.

In light of these analyses, a medium-term buying opportunity may arise. Entering the trade at the current market price (CMP) of 413.05 with a stop-loss (SL) set at 404 could provide a safety net against adverse price fluctuations. The anticipated target price of 425 aligns with potential bullish momentum.

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.