Trade Call: Sumeet Bagadia Recommends 2 Stocks To Buy/Sell On Friday, 24th Nov

Given that Gift Nifty traded in the red early on Friday due to strong global signals, the Indian market is probably going to open cautiously. The Nifty 50 closed yesterday at 19,802, down 9.85 points, or 0.05%, while the Sensex closed at 66,017.81, down 5.43 points, or 0.01%. On the Nifty, the primary gainers were Hero MotoCorp, Bajaj Auto, BPCL, Eicher Motors, and IndusInd Bank; the top losers were Cipla, UltraTech Cement, LTIMindtree, SBI Life Insurance, and Larsen & Toubro. On the broader market front, the BSE midcap index ended with marginal gains of 0.15% and 0.44% higher.

Nifty Outlook

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "The Future Open Interest (OI) indicated buildup of short positions in the Nifty futures. Nifty has formed a shooting star candle on the daily chart, which is usually considered to be a bearish reversal signal. The level of 19,800 proved to be a major resistance yet again as Nifty managed to marginally close above it.

The fall from the high of 19,850 made on 17th October to the low of 18,838 made on 26th October took just seven trading sessions while the rise from the low of 18,838 made on 26th October to today's high of 19,876 took 20 sessions, indicating that the current uptrend is not as strong as it seems to be. The option activity at the 19,800 Strike will provide cues about Nifty's future direction."

"Nifty moved in a narrow range of 90-points throughout the session, forming a small red candle, suggesting a tug of war around the crucial 19,800 level between the bulls and the bears. The hourly chart, index which is showing some weakness, could continue to point sideways as the major sectors end flat. Nifty still holds 50 SMA support and also RSI stands at 61 Levels. However, weakness will persist only if it closes below the 19,650 level," said Om Mehra, Technical Analyst, SAMCO Securities.

Bank Nifty Outlook

"Bank Nifty traded sideways throughout the day to close at 43,578, up 128 points. Bank Nifty has been moving in the 43,500-43,800 range for the last five trading sessions. A decisive breakout on either side of the range will set the tone for next leg of rally in Bank Nifty. The level of 43,500 is likely to act as a strong support for Bank Nifty," said Ashwin Ramani.

"On the contrary, Bank Nifty concluded with a 0.29% gain, closing at 43,577.50. The index demonstrated some strength by breaking above the prior resistance level of 43500, which was backed by strength seen in private sector banks stocks. For the next trading session, Bank Nifty would move within the wider range of 43,200 to 43,900. Nifty hints at a cautious market sentiment, Bank Nifty's strength underscores a more positive outlook," Om Mehra stated.

Stocks To Buy Today

On Friday, November 24, Choice Broking's executive director Sumeet Bagadia suggested trading in two companies and issued a buy recommendation. See below for Triveni Engineering and Industries' and Praj Industries' entry price, stop loss, and target price.

Triveni Engineering and Industries

Buy TRIVENI in cash @ Rs 378, stop-loss: Rs 364, target: Rs 394

Triveni Engineering & Industries Ltd (TRIVENI) is presently valued at 378, indicating robust performance as it has successfully closed above its short, mid, and long-term moving averages-specifically the 50, 100, and 200 Exponential Moving Averages (EMA). This alignment emphasizes the stock's resilience across different time frames, signifying a favorable trend. With a Relative Strength Index (RSI) at 69, the momentum is strong but hasn't reached overbought levels.

Additionally, the Average Directional Index (ADX) stands at 16, indicating a moderately strong trend in favor of TRIVENI. The breakthrough at 370 has propelled the stock, and its current strength suggests a positive outlook. Given these technical signals, TRIVENI appears to be an attractive purchase at 378, with a recommended stop-loss at 364. The anticipated target of 394 aligns with the positive momentum and the breakout scenario.

Praj Industries

Buy PRAJIND in cash @ Rs 615, stop-loss: Rs 590, target: Rs 652

Praj Industries Limited (PRAJIND) currently stands at 615, demonstrating a commendable performance as it has successfully closed above its short, mid, and long-term moving averages, specifically the 50, 100, and 200 Exponential Moving Averages (EMA). This convergence reflects a robust trend, underscoring the stock's resilience across various time frames. The Relative Strength Index (RSI) is notably at 69, indicating a healthy momentum without entering overbought territory.

Moreover, the Average Directional Index (ADX) is moderately strong at 27, further substantiating the stock's positive trend. The breakout at 600 has propelled Titan, and its current strength suggests a favorable outlook. Considering these technical indicators, PRAJIND appears to be a compelling buy at 615 with a strategic stop-loss set at 590. The potential target of 652 aligns with the positive momentum and breakout scenario.

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.