Trade Call: Sumeet Bagadia Recommends 2 Stocks To Buy/Sell On Tuesday, 21st Nov

Owing to the downward trend in crude oil and the lacklustre global cues, the Sensex and Nifty 50 closed the day lower on Monday. The Nifty 50 closed at 19,694, down 37.80 points, or 0.19%, while the Sensex settled at 65,655.15, down 139.58 points, or 0.21%. Adani Enterprises, M&M, Bajaj Finance, SBI Life Insurance, and UltraTech Cement were among the top Nifty losers; winners included Divis Labs, Bharti Airtel, HCL Technologies, Wipro, and Coal India. On the broader market front, BSE midcap index ended flat, while the smallcap index climbed 0.4 per cent.

Market Outlook

Mr. Aditya Gaggar Director of Progressive Shares said, "As anticipated, the markets remained rangebound post the tepid opening and finally settled at 19,694.00 with a loss of 37.80 points. Sector-wise, the IT sector kept on strengthening its uptrend while the Auto sector witnessed a pressure of profit booking. The index has made a small negative candle in the middle of the range (19,850-19,550). We believe that the index is heading towards forming a right shoulder of an Inverted Head and Shoulder formation."

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "Nifty consolidated in a narrow range throughout the day to close at 19,694, down 38 points. The Future Open Interest (OI) indicated liquidation of long positions for the second consecutive trading day. The Put-Call Ratio (PCR) fell from 1.19 to 1.06 in the last one week as the call writers continued to keep the pressure on the markets. Nifty has been moving in a narrow range since last three trading sessions and a possibility of a breakout can't be ruled out. Heavy call writing was observed at 19,700 & 19,800 Strike today, keeping the pressure on the bulls. The option activity at 19,700 Strike is likely to provide cues about Nifty Intraday direction today."

"Bank Nifty has formed a doji candle on the daily chart, which signals indecision. Both the call & put writers battled out at the maximum put open interest strike of 43,500 with the latter winning the battle by a fine margin. The level of 43,800 is a key hurdle for Bank Nifty and a continuation of uptrend is likely upon successful close above the same. Bank Nifty closed 1 point higher at 43,585," further added Ashwin Ramani.

Nifty Outlook Today

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "The Nifty index is currently trading within a broad consolidation phase, forming an inside bar candle pattern, with support observed at 19,650 and resistance at 19,800. For a decisive trending move, the index needs to break out of this range with significant volumes on either side. Despite the consolidation, the broader picture remains bullish, with major support identified in the 19,550-19,500 zone. A break above 19,850 is anticipated to open up room for the index to reach all-time high levels."

Bank Nifty Outlook Today

"The Bank Nifty index has formed a doji candle on the daily chart, suggesting indecisiveness at the current levels. The index encounters formidable resistance at 44,000, where the highest open interest is concentrated on the call side. A breakthrough above this level is anticipated to trigger sharp short-covering moves. Conversely, the lower-end support is positioned at 43,300, and a breach below this level could pave the way for further downside movement towards the 42,800 level. This data highlights a delicate balance in market sentiment, with potential for significant moves based on key resistance and support levels," stated Kunal Shah.

Stocks To Buy Today

Executive director of Choice Broking Sumeet Bagadia gave a buy recommendation and suggested trading in two stocks on Tuesday, November 21. Read every bit of technical detail, including the entry, stop-loss, and target price, below.

Bharti Airtel

Buy BHARTIARTL in cash @ Rs 961.4, stop-loss: Rs 933, target: Rs 1020

BHARTIARTL is currently trading at Rs 961.4, exhibiting a notable price breakout of a rounding bottom pattern, accompanied by robust volume, indicating a bullish momentum in the stock. Furthermore, the stock is trading above crucial Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, reinforcing its bullish stance and suggesting the potential for further upward price movement.

The Relative Strength Index (RSI) is presently at 65.58 and is on an upward trajectory, signalling a growing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has demonstrated a positive crossover from the oversold region, adding to the bullish sentiment. This confluence of technical indicators suggests that BHARTIARTL may have the potential to reach a target price of Rs 1020 in the near term.

To effectively manage risk, it is advisable to implement a stop-loss (SL) at Rs 933 to safeguard investments in the event of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, BHARTIARTL appears to present an attractive buying opportunity for those targeting a Rs 1020 price objective, provided that prudent risk management measures are in place.

HCL Tech

Buy HCLTECH in cash @ Rs 1325, stop-loss: Rs 1300, target: Rs 1360

HCL Technologies (HCLTECH) currently trades at 1325, showcasing a robust technical profile. The stock has demonstrated considerable strength by closing above key short, mid, and long-term moving averages, specifically the 50, 100, and 200 Exponential Moving Averages (EMA). This signifies a positive trend momentum, affirming the stock's upward trajectory.

Moreover, the Relative Strength Index (RSI) stands at a healthy 69, suggesting a balanced buying and selling pressure without being excessively overbought. The Average Directional Index (ADX) is at a moderately strong level of 31, indicating a notable trend in place. This combination of factors underscores the technical soundness of HCL Tech's current position.

A noteworthy observation is the recent breakout above 1315, a crucial level that the stock has managed to hold, further reinforcing its bullish stance on the charts. In consideration of these technical indicators, a strategic buying opportunity is presented at the current market price of 1325, with a recommended stop loss set at 1300. The target price is identified at 1360, aligning with the positive momentum and breakout confirmation.

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.