Trade Call: Sumeet Bagadia Recommends 2 Stocks To Buy/Sell On Thursday, 23rd Nov

Indian benchmark indices wrapped up Wednesday, November 22, higher, following their global peers. The Nifty surged 28.40 points, or 0.14 per cent to close at 19,811.80, while the Sensex gained 92.47 points, or 0.14 per cent to settle at 66,023.24. BPCL, Cipla, NTPC, Infosys, and Bajaj Auto were the top Nifty gainers, while IndusInd Bank, Hindalco Industries, Kotak Mahindra Bank, Adani Enterprises, and Adani Ports were the top losers. On the broader market front, S&P BSE Midcap ended 0.33% higher while S&P BSE SmallCap ended 0.63% lower.

Market Outlook Today

On Wednesday Nifty started off on a positive note before massive selling pressure dragged the Index down only for it to recover sharply in the last hour of the day to close at 19,812, up 28 points. The Future Open Interest (OI) indicated buildup of long positions for the second consecutive day in the Nifty futures. Nifty has formed a hammer like candle on the daily chart, indicating strong buying interest from the day's low of 19,704, said Mr. Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.

"Nifty had failed to successfully close above the key resistance level of 19,800 in three out of the previous four trading sessions. Put writers now have the upper hand over 19,800 Strike price. Nifty is likely to find clear direction once significant short covering is observed at the 19,800 Strike. Bank Nifty was under massive selling pressure since the beginning of the session.

It erased some of its losses during the penultimate hour ahead of closing. Call writers overpowered the put writers at the 43,500 Strike in Bank Nifty. Bank Nifty reversed from the 50% Fibonacci retracement level of 43,259, drawn from the low of 42,105 made on 26th October to the high of 44,421 made on 16th November. The Index closed 240 points lower at 43,450," the analyst further added.

"Indian market followed a consistent upward momentum, propelled by increased buying, predominantly spearheaded by Midcap and Small cap. On the hourly chart, the Nifty shot up from the rising trendline and has engulfed the previous three candles, indicating strength.

The market is currently making a push towards the 20,000 level, with a potential hurdle expected in the minor resistance zone spanning 19,920 to 19,940. It's worth noting that immediate support is firmly established at 19,700," said Om Mehra, Technical Analyst, SAMCO Securities.

"While Bank Nifty concluded the session on a downtrend as it breached the critical support level at 43,300. This breach has prompted a shift in focus towards the significant support at 43,000, aligning with the 61.8% Fibonacci retracement level. Overall Nifty 500 ended flat, and market breadth remained on the positive side," the analyst further stated.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, gave a buy rating and recommended trading in two stocks on Thursday, November 23. Take into account every technical element listed below, paying attention to the entry, stop-loss, and target price.

Infosys

Buy INFY in cash @ Rs 1457, stop-loss: Rs 1420, target: Rs 1530

INFY, currently trading at Rs 1457, has recently broken out above Rs 1453 and formed a bullish engulfing candlestick pattern on the daily chart. The immediate resistance is near the Rs 1500 level, and the current price is exhibiting strong bullish momentum, expected to continue towards the Rs 1530 level. On the flip side, there is strong support near Rs 1420.

Moreover, INFY is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, indicating robust bullish momentum and suggesting potential for further upward price movement. The Relative Strength Index (RSI) is presently at 61.5, showing an upward trajectory and indicating increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively suggest that INFY may have the potential to reach a target price of Rs 1530 in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 1420 to safeguard the investment in the event of an unexpected market turn. A prudent strategy would be to consider buying on dips at levels of Rs 1445 and Rs 1435.

Overall, considering the technical analysis and current market conditions, INFY presents a promising buying opportunity for those aiming for a Rs 1530 price target, provided that prudent risk management measures are in place.

Bajaj Finserv

Buy BAJAJFINSV in cash @ Rs 1623, stop-loss: Rs 1580, target: Rs 1715

BAJAJFINSV is currently trading at Rs 1623, displaying a pattern of higher highs and higher lows, indicative of a bullish momentum that is likely to persist. A potential breakout above Rs 1630 could propel the stock towards the Rs 1715 level, with an immediate resistance at Rs 1666. On the flip side, Rs 1580 serves as a crucial support level.
Furthermore, BAJAJFINSV is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs.

This signifies a robust bullish trend, suggesting the possibility of continued upward movement. The Relative Strength Index (RSI) is currently at 58.8, on an upward trajectory, indicating growing buying momentum. The Stochastic Relative Strength Index (Stoch RSI) supports this bullish sentiment with a positive crossover. Collectively, these technical indicators imply that BAJAJFINSV has the potential to reach the Rs 1715 target in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 1580 to protect the investment in case of an unexpected market reversal. A prudent strategy would involve considering buying opportunities on dips at levels around Rs 1600 and Rs 1594.

In summary, based on technical analysis and prevailing market conditions, BAJAJFINSV appears to present a promising buying opportunity for those targeting a Rs 1715 price objective. It is crucial to implement prudent risk management strategies to navigate potential market fluctuations.

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.