Trade Call: Sumeet Bagadia Recommends 2 Stocks To Buy/Sell On Tuesday, Dec 5

On December 4, benchmark indices concluded at new all-time highs. The Sensex was up 1383.93 points, or 2.05 per cent, at the close, while the Nifty began a gap higher and experienced a one-sided action to end with gains of 419 points (+2%) at 20689 levels. Except for pharma, all sectors finished in green.

The primary gainers, each up 3%, were oil and gas, banking, and financials. During the day, the Bank Nifty index had a tremendous surge of 1600 points, shattering the previous high of 46369 marks set in July 2023 to set a new lifetime high of 46484. On the Nifty, the top gainers were Eicher Motors, Adani Enterprises, Adani Ports, BPCL, and ICICI Bank; the top losers were HDFC Life, Britannia Industries, Wipro, Sun Pharma, and HCL Tech. Broader indices BSE Midcap and Smallcap rose 1.19% and 1.20% each respectively.

Nifty Outlook Today

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "The Put-Call Ratio (PCR) has risen from 1.19 on 30th November to 1.54 on 4th December, indicating put writers' dominance. The Open Interest (OI) in Nifty Futures indicated buildup of fresh long positions. Call writers exiting and strong put writing was observed at 20,400, 20,500 & 20,600 Strike, resulting in a strong up move today. The maximum call open interest is placed at 21,000 Strike in Nifty, which will act as resistance for the Index. The level of 20,500 is likely to act as a strong support for Nifty. The option activity at 20,700 Strike will provide cues about Nifty's future direction."

Om Mehra, Technical Analyst, SAMCO Securities said, "Technically, the Nifty retained its bullish momentum, closing two gap ups in a row to complete a rally of nearly 550 points in just two trading sessions. Index has continued Friday's move and has also managed to accelerate relative outperformance. The sentiment is exuberant that the rally might continue for next trading session as well. Large caps may now see more strength after decent consolidation. However one must keep a cautious approach as RSI is hovering at 81 levels. The market could be extremely volatile after testing all-time highs."

Rupak De, Senior Technical analyst at LKP Securities said, ""The Nifty kicked off with a gap up, propelled by BJP's exceptional performance in the state election. Technically, the Nifty had already surged past the critical resistance level of 19850. Since then, there has been a significant shift in Put positions towards higher strike prices, foreseeing a robust upward rally in the near future. The overall sentiment appears highly bullish, until Nifty fall below 20400. On the higher end, the index might move towards 21000."

Bank Nifty Outlook Today

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "Bank Nifty went past its previous all-time high of 46,370 made on 21st July 2023. Heavy put writing was observed at 46,000 Strike in the Index. The two banking heavyweights, HDFCBANK & ICICIBANK were up 3.47% and 4.70% respectively. The option activity at 46,500 Strike will provide cues about future direction of Bank Nifty. Bank Nifty closed 1,617 higher at 46,431."

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "The Bank Nifty bulls made a strong comeback, surpassing the all-time high levels and dispelling the bearish sentiment. The momentum is anticipated to persist, with robust support identified at the 46000-45800 zone, serving as a cushion for the bulls. The ongoing momentum rally has the potential to propel the index higher towards the levels of 47000/48000."

Stocks To Buy Today

On Tuesday, December 5, Choice Broking's executive director Sumeet Bagadia recommended purchasing 2 stocks. The entry price, stop loss, and target price for Cipla and Godrej Consumer Products are as follows.

Godrej Consumer Products

Buy GODREJCP in cash @ Rs 1041.75, stop-loss: Rs 1022, target: Rs 1085

Godrej Consumer Products Limited (GODREJCP) appears to have exhibited a notable resurgence in its stock price. It recently rebounded from a support level at 1030 which was prior to a resistance and is presently trading at around 1041.75. The fact that the stock is trading above all the important Exponential Moving Averages (EMA) suggests that there's a significant strength.

Additionally, the Relative Strength Index (RSI) indicator, which hovers around the 66 level, indicates a balanced market sentiment, potentially poised for an upward move.

There's a minor resistance level at 1050, which the stock needs to breach. If it successfully closes above this level, it may have the potential to advance towards 1085 and beyond.

Based on the above analysis we recommend buying GODREJCP at CMP of 1041.75 with a SL of 1022 for the target of 1085.

Cipla

Buy CIPLA in cash @ Rs 1216.50, stop-loss: Rs 1190, target: Rs 1270

CIPLA is presently trading at 1216.50 levels. On the daily chart, the stock has formed a strong bullish candle, signifying a resurgence of strength in its price action.

A robust support level is situated at 1205 levels, which conveniently aligns with the 50-Day Exponential Moving Average (EMA). This confluence of support factors enhances the stock's stability and resilience.

Furthermore, CIPLA is trading above all the important moving averages, which underscores its overall bullish posture and trend.

The Relative Strength Index (RSI), a momentum indicator, is hovering around 50 levels. This RSI reading suggests that the stock possesses considerable strength without being excessively overbought. It signifies a healthy and sustainable uptrend.

A minor resistance level is noticeable in the vicinity of 1226 levels. Should the stock successfully surpass this resistance, it has the potential to advance towards the target level of 1270. This could present a favourable trading opportunity for investors and traders alike.

Based on the above analysis we recommend buying CIPLA at CMP of 1216.50 with a SL of 1190 for the target of 1270.

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.