Trade Call: Sumeet Bagadia Recommends 2 Stocks To Buy/Sell On Monday, 20th Nov

Sensex and Nifty 50 ended lower on Friday, driven by Auto, IT, and Banking stocks. Sensex ended 187.75 points, or 0.28%, lower at 65,794.73 points, while Nifty ended 33.40 points, or 0.17%, lower at 19,731.80. SBI, Axis Bank, ONGC, BPCL, and Bajaj Finance were the worst performers on the Nifty, while SBI Life Insurance, HDFC Life, Apollo Hospitals, Larsen & Toubro, and Tata Consumer Products were the top gainers. On the broader market front, BSE Mid Cap index settled 90.18 points or (0.27%) higher whereas the small-cap index surged 142.76 points or (0.36%) to close at the 39,598.63 level.

Nifty Outlook On Monday

Rupak De, Senior Technical analyst at LKP Securities said, "The Nifty has largely traded within a range, showing a predominantly bullish sentiment. Over the past two to three days, a 'buy on dips' approach has been loved by the street since the Nifty crossed the crucial 19,500 mark. The trend is expected to stay positive as the Nifty consistently concludes trading sessions above the critical moving averages. Support levels are situated at 19,630/19,500 on the lower end, while resistance is placed at 19,850/ 20,000 on the higher end."

Bank Nifty Outlook On Monday

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "Following the RBI's announcement of tightening provisions for consumer loans, the Bank Nifty opened with a gap down and sustained below the 44,000 mark. The index's next support is situated at the 43,300-43,250 zone, serving as a crucial line of defense for the bulls. If this level holds, it could pave the way for a potential recovery towards the 44,000 mark. However, a breach of the mentioned support may intensify selling pressure, leading the index further down towards the 42,700 level on the downside."

Stocks To Buy On Monday

On Monday, November 20, Choice Broking's executive director Sumeet Bagadia recommended trading in two companies and issued a buy rating. See the full technical data below, which includes the entry, stop-loss, and target price.

Eris Lifesciences

Buy ERIS in cash @ Rs 933, stop-loss: Rs 915, target: Rs 978

ERIS, currently trading at 1972, exhibits a robust technical profile with a favourable alignment of short, mid, and long-term moving averages, boasting closure above the 50, 100, and 200 EMA. The Relative Strength Index (RSI) stands at a healthy 67, indicating a balanced momentum. The Average Directional Index (ADX) reflects a moderately strong trend at 32, contributing to the stock's positive bias. Notably, ERIS recently experienced a substantial breakout following a month-long consolidation, further reinforcing its upward potential.

In consideration of these indicators, ERIS presents a compelling investment opportunity with a suggested entry point of 933, accompanied by a stop loss set at 915 and a target price of 978.

Tata Consumer Products

Buy TATACONSUM in cash @ Rs 930.85, stop-loss @ Rs 910, target: Rs 970

TATACONSUM is currently displaying several positive technical indicators in its trading pattern. The Relative Strength Index (RSI) at 63 suggests that the stock is in a balanced state, neither overbought nor oversold, indicating a stable trend. The strong support for the stock is at 910 levels which is close to its 20 Day EMA levels. Furthermore, the stock is trading above its 20, 50 and 200-day Exponential Moving Average (EMA), which is often considered a bullish sign.

With a medium-term target price of 970, we advise purchasing TATACONSUM at the CMP of 930.85. If the price closes below 910, our analysis will be regarded as being invalid.

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.