Trade Call: Sumeet Bagadia Recommends 2 Stocks To Buy/Sell On Monday, Dec 11

In the tumultuous session of December 8, Indian benchmark indices concluded with gains, as the Nifty surged 68.20 points, or 0.33 per cent, at 20,969.40, while the Sensex gained 303.91 points, or 0.44 per cent, at 69,825.60 at the closing. Sensex and Nifty both see weekly increases of more than 2%. On the Nifty, the primary gainers were HCL Technologies, JSW Steel, LTIMindtree, Apollo Hospitals, and Infosys; the top losers were Adani Enterprises, ITC, Adani Ports, Hero MotoCorp, and M&M. The leading gainer on the sectoral front was Nifty IT, followed by banks and real estate, while the top loser was the FMCG and pharmaceutical sectors.

Market Outlook

Aditya Gaggar, Director of Progressive Shares said, "Post the V-shaped breakout in Nifty50, follow-up buying was seen during the week. In the previous weekly notes, we had given a target of 21,500 and in the current week itself, it has registered a fresh high of 21,006.10. Considering the overbought condition, one should opt buy on dips strategy with the downside being protected at 20,850 while on the higher side, 21,170 will act as a resistance.

At record levels, the Auto sector has made a DOJI candlestick pattern which indicates that the top has been placed and a trend reversal can be seen in the form of profit booking. Banking stocks are likely to dominate the Index rally going forward as it has given a breakout and some of the constituents have also experienced a strong breakout (HDFC Bank, ICICI Bank and SBI- Falling Channel Breakout, Kotak Bank- Inverted Head & Shoulder Breakout and RBL Bank- Range Breakout).The immediate support stands at 46,800 while the resistance is at 47,600."

"As pointed out in the previous edition, the Energy sector performed as per anticipation. Price or time-wise correction can be seen in the OMC stocks as they are in the overbought territory; however, the overall uptrend will remain intact and such correction will offer better entry points. Power stocks have shown notable growth during the week by giving strong breakouts with considerable volumes, buy on dips would be an ideal strategy. The IT sector is set to give a major breakout so are its components, one should keep an eye on the sector (HCL Tech and Wipro- Forming Rounding Bottom and Cup and Handle Pattern respectively).

The technical set-up of selective Cement stocks seems promising namely ACC (Ascending Triangle Breakout), India Cements (Symmetrical Triangle Breakout), Heidelberg Cement and JK Lakshmi Cement (Rounding Bottom Breakout). After consolidation of over two months, the PSU Banking sector has given a breakout from a Symmetrical Triangle Formation which suggests an extension of the current uptrend (Canara Bank- Major Breakout)," the analyst further added.

Nifty Outlook

Rupak De, Senior Technical analyst at LKP Securities said, "During the week, the Nifty witnessed a spectacular rally following a swing high breakout on the daily chart. This suggests a rise in optimism among market participants. However, the Nifty consolidated in the later part of the week. Going forward, 21000 is likely to act as a crucial level for the Nifty as call writers have built their maximum positions at that strike price. A resumption of the current uptrend might be seen above 21000, with the potential to reach towards 21550. On the lower end, put writers have built significant positions at 20900 and 20800; below these levels, profit booking might increase."

Bank Nifty Outlook

"Bank Nifty witnessed a significant rally during the week, but has been consolidating around 47,000 post-rally. A breakout from the current consolidation level could push the index towards 48,000 in the short term. Support is placed at 46,500, where put writers have built significant positions. A decisive move above 47,200 might trigger a significant rally," stated Rupak De.

Stocks To Buy This Week

On Monday, December 11, Choice Broking's executive director, Sumeet Bagadia, recommended purchasing two stocks. The entry price, stop loss, and target price for Axis Bank and Wipro are shown here.

Axis Bank

Buy AXISBANK in Cash @ Rs 1131.20, stop-loss: Rs 1100, target: Rs 1188

Axis Bank is presently trading at Rs 1131.20, having recently established an all-time high but subsequently forming lower highs, leading to a reversal from a significant support level. This reversal aligns with both the 50-day and 20-day Exponential Moving Averages (EMA). On the daily scale, the stock is exhibiting a pattern of higher highs and higher lows, indicative of a robust uptrend.

The Relative Strength Index (RSI) for Axis Bank currently stands at 73.9, implying potential upside room for the stock. Furthermore, the Stochastic RSI displays a positive crossover, reinforcing the bullish sentiment. Notably, the stock is trading above all major moving averages, underscoring its strength in the market.

Given these technical indicators and the prevailing market conditions, the current level of Rs 1131.20 presents a favorable buying opportunity for Axis Bank. The trade's target is set at Rs 1188, with a recommended stop-loss at Rs 1100 to manage potential risks.

In summary, considering the technical analysis and the existing market dynamics, initiating a long position on Axis Bank at the current market price is deemed advantageous, with a target of Rs 1188 and a prudent stop-loss set at Rs 1100. Traders should remain vigilant and adjust their strategies in response to changing market conditions.

Wipro

Buy WIPRO in cash @ Rs 422.60, stop-loss: Rs 413, target: Rs 440.

The stock is displaying signs of resilience and potential upward momentum. Its ability to rebound from the robust support range of 405-408 levels which is also close to 200 and 20 Day EMA levels indicates a considerable amount of buying interest within this price band. 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 69 further reinforces the positive outlook. An RSI at this level suggests moderate strength but 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 422.60 with a stop-loss (SL) set at 413 could provide a safety net against adverse price fluctuations. The anticipated target price of 440 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.