Trade Call: Sumeet Bagadia Recommends 2 Stocks To Buy/Sell On Thursday, Dec 7

Declining inflation and yields in both US and Indian markets drove a strong comeback of FIIs, which helped benchmark indices close higher on December 6. The Nifty surged 82.60 points, or 0.40 per cent to close at 20,937.70, while the Sensex gained 357.59 points, or 0.52 per cent to settle at 69,653.73.

Top Nifty gainers included Wipro, LTIMindtree, ITC, L&T, and TCS; losers included Adani Enterprises, Eicher Motors, Cipla, NTPC, and Axis Bank. The BSE midcap and smallcap indices ended the day slightly higher on the broader market front, rising by 0.19% and 0.18%, respectively.

Market Outlook Today

"Index-based buying continued for yet another trading session under the leadership of the Tech stocks. In the mid-session, profit booking in Banking as well as several other stocks had put pressure on the Index to trade lower but late buying in the Metal and select heavyweights helped to recover and to end the session at 20,937.70 with gains of 82.60 points. The current rally seems weak as Mid and Smallcaps continue to underperform.

At record levels, Nifty50 has made a DragonFly DOJI candlestick pattern which generally indicates a reversal of a trend. A close below today's low will confirm a reversal of the trend while on the higher side, the psychological level of 21,000 will act as a resistance," said Mr. Aditya Gaggar Director of Progressive Shares.

Nifty Outlook Today

Rupak De, Senior Technical analyst at LKP Securities said, "The index formed a hanging man pattern on the daily chart, suggesting the possibility of a bearish reversal. The bearish formation around the crucial resistance of 21,000 amplifies the bearish sentiment. The support lies at 20,850, below which the market may witness a healthy correction in the short term. On the other hand, a move above 21,000 might trigger a resumption of the bullish trend."

Bank Nifty Outlook Today

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "The Bank Nifty index experienced profit booking at higher levels in anticipation of the upcoming key RBI policy event. Despite this, the overall market sentiment remains bullish. It is advisable to adopt a buy-on-dip strategy, maintaining a positive outlook as long as the index sustains above the critical level of 46400. The immediate hurdle is positioned at 47250, and a successful breach beyond this level is anticipated to pave the way for further upside momentum towards the 48000 level."

Stocks To Buy Today

On Thursday, December 7, Choice Broking's executive director, Sumeet Bagadia, recommended purchasing two stocks. The entry price, stop loss, and target price for ITC and IndiaMART InterMESH and Retail are given below.

IndiaMART InterMESH

Buy INDIAMART in cash @ 2709.4 SL @ 2600 TGT @ 2940

INDIAMART is currently trading at Rs 2709.4, and the daily chart indicates 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 above the consolidation phase at the Rs 2700 level, accompanied by good volume. The immediate resistance is seen at Rs 2800, while Rs 2600 acts as the immediate support level.

Furthermore, INFY is exhibiting a bullish trend as it trades above key Exponential Moving Averages (EMAs), including the 20-day and 50-day. This indicates robust bullish momentum, with the Relative Strength Index (RSI) at 60.27, showing an upward trajectory and increasing buying momentum. The Stochastic Relative Strength Index (Stoch RSI) also displays a positive crossover. These technical indicators collectively suggest that INDIAMART may target a price of Rs 2940 in the near term.

To effectively manage risk, it is advisable to set a stop-loss (SL) at Rs 2600 to protect the investment in case of an unexpected market reversal. A prudent strategy involves considering buying on dips at levels of Rs 2680 and Rs 2650.

In summary, based on technical analysis and current market conditions, INDIAMART appears to be a promising buying opportunity with a target price of Rs 2940, provided that proper risk management measures are implemented.

ITC

Buy ITC in cash @ 463.25 SL @ 450 TGT @ 490

ITC has multiple strong supports in a range of 450-455 levels. The stock is currently trading around 463.25. On the charts, a smaller resistance is visible near 470 levels. Once the stock has surpassed the previously mentioned resistance, it can move closer to the target price of 490 and higher. On weekly chart, the stock is forming higher high higher lows since last 2 weeks indicating strength. Momentum indicator RSI is moving higher and currently trading at 70. The stock is also trading above all important moving averages and hence can approach the target price of 490.

Based on the above technical analysis, we recommend purchasing ITC at the current market price of 463.25, for a target price of 490. If the stock closes below 450, our analysis will be 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.