Trade Call: Sumeet Bagadia Recommends 2 Stocks To Buy/Sell On Tuesday, Dec 12

Domestic markets kept on the streak of setting new records, with the Sensex and Nifty surpassing the 70k and 21k marks, respectively, as investors looked for cues from major inflation data releases from the US and India. The Nifty surged 27.70 points, or 0.13 per cent to close at 20,997.10, while the Sensex gained 102.93 points, or 0.15 per cent to settle at 69,928.53.

Dr Reddy's Laboratories, Cipla, Axis Bank, Eicher Motors, and M&M were the top losers on the Nifty, while UPL, UltraTech Cement, Nestle India, Adani Enterprises, and Power Grid were the top gainers. Sector-wise, there was a 0.4 per cent loss in the pharma index and a 0.5-1% rise for PSU Bank, FMCG, capital goods, power, metal, and real estate. Considering the broader market, the BSE smallcap index climbed by 0.71 per cent and the midcap index by 0.91%.

Market Outlook

Mr. Girirajan Murugan, CEO, FundsIndia said, "The Indian equity market has experienced a noteworthy surge during the early morning trade on Monday. The BSE Sensex achieved a significant milestone by surpassing the 70,000 level for the first time, while the NSE Nifty maintained its position above the 21,000 level. This robust performance underscores the market's capacity to sustain positive momentum, propelled by key determinants."

"Among these influential factors are a notable reduction in crude oil prices, substantial inflows from foreign institutional investors (FIIs) throughout the month of December, and a commendable upward adjustment in GDP growth estimates by the Reserve Bank of India (RBI) to 7% for the fiscal year 2024. Collectively, these indicators affirm the anticipation of a sustained and positive growth trajectory within the nation's economy over the long term," the analyst added.

Nifty Outlook Today

Rupak De, Senior Technical analyst at LKP Securities said, "The Nifty traded mostly sideways as traders stayed on the sidelines at the beginning of a data-packed week. There's a strong resistance at 21,000, with call writers actively building positions. A decisive breakthrough above 21,000 is necessary to resume the uptrend. Until then, it's anticipated that the market will consolidate within a broader range."

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities stated, "The Bank Nifty index encountered resistance at higher levels, but the overall sentiment remains bullish, supported by a robust foundation at the 46800 level. The index is currently adopting a buy-on-dip strategy, suggesting that any declines towards the specified support zone present opportunities to initiate long positions. A significant breakthrough and closure above 47500 are anticipated to trigger additional upward momentum towards the 48000 mark."

Stocks To Buy Today

The executive director of Choice Broking, Sumeet Bagadia, suggested buying two stocks on Tuesday, December 12. Here are the entry price, stop loss, and target price for Hindalco Industries and Indian Railway Finance Corp.

Indian Railway Finance Corp

Buy IRFC in cash @ 82.2 SL 79 TGT 89

IRFC is trading at Rs 82.2, and its price indicates a potential breakout of an inverted head and shoulder pattern on the daily chart. This breakout is accompanied by robust trading volume and is supported by a bullish candlestick pattern, suggesting a strong upward momentum in the stock.

Moreover, IRFC is positioned above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This alignment above crucial EMAs strengthens the bullish outlook, indicating the potential for sustained upward price movement.

The Relative Strength Index (RSI) is currently at 72.8 and trending upwards, signaling an increase in buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has shown a positive crossover from the oversold region, further contributing to the bullish sentiment. The confluence of these technical indicators suggests that IRFC may have the potential to reach a target price of Rs 89 in the near term.

For a strategic entry, it is advisable to consider buying on dips, especially near Rs 80. To effectively manage risk, implementing a stop-loss (SL) at Rs 79 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal.

In summary, based on the technical analysis and current market conditions, IRFC presents an attractive buying opportunity for those targeting a Rs 89 price target. However, it is important to implement prudent risk management measures to ensure a well-protected investment strategy.

Hindalco Industries

Buy HINDALCO in cash @ 522.40 SL @ 510 TGT 550

The stock is currently trading at 522.40 levels. The stock has a strong support at 510 levels which is also close to its 20 Day EMA levels. We can also witness a small resistance at 528 levels. Once stock overcomes the mentioned resistance it can move higher towards the target of 550 and above. The stock is currently trading above all the important moving averages. Momentum indicator RSI is trading at 66 levels indicating strength. The investors holding from lower levels should keep trailing stop loss.

According to the aforementioned technical analysis, we advise buying HINDALCO at a CMP of 522.40 for the target of 550 levels, if the stock closes below 510, 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.