Trade Call: Sumeet Bagadia Recommends 2 Stocks To Buy/Sell On Friday, Dec 8

A seven-day streak of gains was snapped, as benchmark indices closed on a red note on December 7 ahead of the RBI MPC decision. The Nifty ended 36.50 points, or 0.17 per cent lower at 20,901.20, while the Sensex ended 132.04 points, or 0.19 per cent lower at 69,521.69. Top gainers on the Nifty were Power Grid Corporation, Adani Ports, UltraTech Cement, Cipla, and NTPC, while top losers were Bharti Airtel, HUL, ONGC, Apollo Hospitals, and Tata Steel. The Energy sector had gains of more than 1%, with Power companies leading the way. Media and Pharma were the next best performers, while the FMCG and Metal sectors saw a correction. In the broader market, the BSE Smallcap Index gained by 0.3 per cent and the BSE Midcap Index by 0.7 per cent.

Market Outlook Today

Aditya Gaggar, Director of Progressive Shares said, "On the weekly expiry day, the Index remained rangebound and finally settled lower at 20,901.15. Nifty50 has made a small bearish candle on the daily chart which indicates a contraction of the range. For the past 2 days, the Index has been stuck in the range of 20,960-20,850, a breakout on either side will give a proper direction. Ahead of the MPC meeting, the market is expected to be in a narrow range.

A substantial recovery was seen in the BankNifty and the range is 46,500-47,230. From the Energy segment, the Power stocks have shown real power and we have technical coverage on some counters namely BHEL, JSW Energy, NLC India, PTC India and Tata Power and we continue to stick with the same. The Pharma segment is likely to regain its lost momentum by giving a Flag pattern breakout (AuroPharma, Granules, and Zydus Life)."

Nifty Outlook Today

Rupak De, Senior Technical analyst at LKP Securities said, "The Nifty remained sideways during the session, hovering within the bands of 20850-20950. Sentiment remains somewhat cautious ahead of the RBI policy meet. The near-term trend remains sideways to weak as long as it stays below 21000, a psychologically crucial level. A decisive breakout above 21000 might induce a resumption of the uptrend. Until then, we anticipate weakness over the near term"

Bank Nifty Outlook Today

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "The Bank Nifty index exhibited sideways momentum in the session preceding the RBI policy announcement. The lower-end support for the index is situated at 46500-46400, and as long as it maintains levels above this zone, the stance remains in a buy-on-dip mode. Immediate resistance on the upside is identified at 47000, and a decisive breakthrough at this level is anticipated to propel the index further upwards towards the 47500 mark."

Nifty remains cautious ahead of RBI meet

Om Mehra, Technical Analyst, SAMCO Securities said, "After opening weak and moving in a narrow range thereafter, Nifty ended at 20,901.15 slipping 36 points or 0.17 percent. Currently Nifty is going through a consolidation phase. Once it sustains 20,960 levels we can expect a rally till 21,100-21,180 levels. Indicators such as RSI and MACD are indicating neutral to bullish views as of now in the daily time frame. The volume profile indicates Index may find support around 20,700 levels. Bank nifty closed the session at 46,841 and ended almost flat. The index would attempt for 47,500 once it sustain above 47,050 levels."

"As the Reserve Bank of India (RBI)'s Monetary Policy Committee (MPC) meeting's outcome will be out on Friday, December 8 morning, during market hours, market may see momentum shifting to key Banking stocks and this may see Bank Nifty sustain above 47,050 in wake of status quo being maintained on interest rate front. Small and Mid-cap indices ended on a mixed note as there is neither weakness nor optimism currently prevailing in this space. The market undertone however is bullish, and the major trend of the market is on the positive side. Hence any short-term corrections will remain a buying opportunity," the analyst stated.

Stocks To Buy Today

The executive director of Choice Broking, Sumeet Bagadia, suggested buying two stocks on Friday, December 8. Below are Jbm Auto and Havells India's entry price, stop loss, and target price.

Havells India

Buy HAVELLS in cash @ Rs 1349.5, stop-loss @ Rs 1305, target @ Rs 1430

HAVELLS is currently trading at Rs 1349.5, exhibiting a breakout of a rounding bottom chart pattern with significant volume, signaling robust bullish momentum. Furthermore, the stock is positioned above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This alignment above crucial EMAs enhances the bullish outlook, suggesting the potential for sustained upward price movement.

The Relative Strength Index (RSI) is presently at 66.7 and trending upwards, indicating an increase in buying momentum. The convergence of these technical indicators suggests that HAVELLS may have the potential to reach a target price of Rs 1430 in the near term.

It is advisable to consider buying on dips, especially near Rs 1325, to optimize entry points. To effectively manage risk, implementing a stop-loss (SL) at Rs 1305 is recommended. This measure is crucial to protect your investment in the event of an unexpected market reversal.

In summary, considering the technical analysis and prevailing market conditions, HAVELLS appears to offer an attractive buying opportunity for those targeting a Rs 1430 price objective, provided that prudent risk management measures are in place.

Jbm Auto

Buy JBMA in cash @ Rs 1286.45, stop-loss @ Rs 1240, target @ Rs 1370

JBMA is presently trading at Rs 1286.45, and the daily chart signals a consolidation phase at a support level, characterized by neutral candlesticks at the bottom. This pattern suggests a potential reversal from the bottom, with a breakout expected above the consolidation phase at the Rs 1300 level, supported by substantial volume. The immediate resistance is noted at Rs 1370, while Rs 1250 serves as the immediate support level.

Additionally, JBMA demonstrates a bullish trend by trading above key Exponential Moving Averages (EMAs), including the 20-day and 50-day. This indicates robust bullish momentum, complemented by the Relative Strength Index (RSI) at 58, showing an upward trajectory and increasing buying momentum. The Stochastic Relative Strength Index (Stoch RSI) also exhibits a positive crossover. Collectively, these technical indicators suggest that JBMA may target a price of Rs 1370 in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 1240 to protect the investment in the event of an unexpected market reversal. A prudent strategy involves considering buying on dips at levels around Rs 1270.
In summary, based on technical analysis and prevailing market conditions, JBMA appears to offer a promising buying opportunity with a target price of Rs 1370, provided that proper risk management measures are implemented.

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.