Trade Call: Sumeet Bagadia Recommends 2 Stocks To Buy/Sell On Tuesday, 28th Nov

The Indian stock market had a weaker Friday closing. The Nifty was down 0.04% at 19,794.70 points at market close, while the Sensex plummeted 0.07% to settle at 65,970.04 points. On the Nifty pack, top gainers were Adani Enterprises, Cipla, Divi's Laboratories, Hindalco Industries and Adani Ports and Special Economic Zone whereas the top losers were Wipro, Apollo Hospitals Enterprise, HCL Tech, TCS and Britannia Industries. On the broader market front, BSE Midcap and BSE SmallCap ended flat with 0.13% and 0.14% upside gains.

Weekly Market Outlook

Vinod Nair, Head of Research at Geojit Financial Services said, "Domestic indices traded within a range throughout the week with a positive bias. The Fed reserve adopted a cautious stance and the muted trend in European and German markets was also echoed in domestic markets. Declining inflation and recent cooling job data in the US, along with easing US bond yields, attracted foreign funds to the emerging market. The broader Indian market experienced some profit booking as investor attention shifted to the primary market, marked by a set of IPOs scheduled for the week. Sectors such as consumer durables and realty took the lead, driven by a strong rebound in festive demand. However, the IT sector showed subdued performance in response to weak global data. Despite the RBI's scrutiny of unsecured lending by NBFCs, the banking index demonstrated resilience this week."

Nifty Outlook

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "Nifty moved in a sideways to down formation throughout the day to close at 19,795, down 7 points. The India VIX, known as the fear indicator, fell 4.2% in the current week, giving some comfort to the bulls. The Futures Open interest (OI), however, indicated build-up of fresh short positions in the Index futures for two consecutive days. Nifty has been taking resistance around the 70.7% Fibonacci retracement level of 19,818 since six out of the last five trading sessions, drawn from the high of 20,222 made on 15th September to the low of 18,838 made on 26th October. Nifty has failed to sustain above the key level of 19,800. Both the call & put writers have been battling out at the 19,800 Strike in Nifty. The option activity at 19,800 Strike is likely to set the tone for the next leg of rally in Nifty."

Bank Nifty Outlook

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "Bank Nifty ended the volatile day, moving sharply both sides on Intraday basis to end at 43,769, up 192 points. Bank Nifty has given a higher close on the daily chart, which is a positive sign. The level of 43,300 is likely to act as a strong support for Bank Nifty. A strong close above 43,800 level can lead to initiation of fresh longs in the Index."

Rupak De, Senior Technical analyst at LKP Securities said, "Following RBI's tightening measures, the Bank Nifty has consolidated at lower levels, with four of the five largest banks dropping below their 200DMA. The sentiment appears sideways in the short term. The level of 44000 is poised to remain a pivotal point; a decisive move above this mark could potentially trigger a substantial rally for the index. On the downside, visible support resides around 43500."

Stocks To Buy This Week

Sumeet Bagadia, executive director of Choice Broking, recommended buying and advised trading in two firms on Tuesday, November 28. The entry price, stop loss, and target price for HDFC Bank and Bharti Airtel can be seen below.

HDFC Bank

Buy HDFCBANK in Cash @ 1532 SL 1489 TGT 1600

HDFC Bank is currently trading at Rs 1532. After a prolonged correction in the stock and a breakout of the rounding bottom pattern, a strong close above the Rs 1535 level could propel it further to Rs 1600 in the short run. On the flip side, Rs 1500 and Rs 1532 are expected to act as immediate support levels.
Furthermore, the Relative Strength Index (RSI) is presently at 60.12 and trending upwards, indicating a growing buying momentum from the oversold region. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has recently experienced a positive crossover from the oversold region. This combination of technical indicators suggests that HDFC Bank may have the potential to reach a target price of Rs 1600 in the near term.

To effectively manage risk, it is advisable to implement a stop-loss (SL) at Rs 1489 to safeguard your investment in case of an unexpected market reversal. In summary, considering the technical analysis and current market conditions, HDFC BANK appears to offer an appealing buying opportunity for those targeting a Rs 1600 price objective, provided that prudent risk management measures are in place.

Bharti Airtel

Buy BHARTIARTL in cash @ 973 SL 943 TGT 1030

BHARTIARTL is currently trading at Rs 973, 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 67 and is on an upward trajectory, signaling 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 1030 in the near term.

To effectively manage risk, it is advisable to implement a stop-loss (SL) at Rs 943 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 1030 price objective, provided that prudent risk management measures are in place.

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.