Trade Call: Sumeet Bagadia Recommends 2 Stocks To Buy/Sell On Wednesday, 22nd Nov

Amidst impoverished global cues, the Sensex closed Tuesday at 65,930.77, up 275.62 points or 0.42%, and the Nifty 50 identified at 19,783.40, up 89.40 points or 0.45%. SBI Life Insurance, HDFC Life, Adani Enterprises, Hindalco Industries, and JSW Steel were the top gainers on the Nifty, while NTPC, Larsen and Toubro Ltd., BPCL, Tech Mahindra, and LTIMindtree were the top losers. The BSE Midcap and Smallcap indices ended the day with modest gains on the broader market front, rising by 0.14% and 0.20%, respectively.

Market Outlook Today

Mr. Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "Nifty consolidated in a tight range for the fourth consecutive trading day to close at 19,783, up 89 points. The Future Open Interest (OI) indicated buildup of long positions in the Nifty futures. The Long-Short Ratio has been hovering around the 20-22% range since last four trading sessions, indicating Foreign Portfolio Investors' (FPIs) subdued participation in Index futures.

Nifty has formed a doji candle on the daily chart, which signals indecision. Short covering was observed at 19,700 Strike while put writers strengthened their position at 19,800 Strike in Nifty. The level of 19,800 is going to be a key level for Nifty in the coming days. A continuation of uptrend is likely only upon successful close above the same.

Commenting on the Bank Nifty outlook he said Bank Nifty consolidated between the narrow range of 43,670-43,780 throughout the day to close at 43,689, up 104 points. Both call & put writers battled out at 43,700 Strike in Bank Nifty. The option activity at 43,700 Strike is likely to provide cues about Bank Nifty's Intraday direction ahead of the weekly expiry today.

Stocks To Buy Today

On Wednesday, November 22, Choice Broking's executive director Sumeet Bagadia recommended trading in two companies and issued a buy recommendation. Evaluate all of the technical details below, taking note of the entry, stop-loss, and target price.

Astral

Buy ASTRAL in cash @ Rs 1942.75, stop-loss: Rs 1875, target: Rs 2075

ASTRAL is currently trading at Rs 1942.75, experiencing a robust reversal from the lower channel and breaking out of the daily trendline with significant volume, indicating a strong bullish momentum in the stock. Moreover, the stock is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, solidifying its bullish stance and suggesting the potential for further upward price movement.

The Relative Strength Index (RSI) is currently at 73 and is trending upward, signaling a growing 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. This convergence of technical indicators suggests that ASTRAL may have the potential to reach a target price of Rs 2075 in the near term.

To effectively manage risk, it is advisable to implement a stop-loss (SL) at Rs 1875 to safeguard investments in the event of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, ASTRAL appears to present an attractive buying opportunity for those targeting a Rs 2075 price objective, provided that prudent risk management measures are in place.

Fortis Healthcare

Buy FORTIS in cash @ Rs 372, stop-loss: Rs 360, target: Rs 386

Fortis appears to be exhibiting favorable technical indicators, providing a compelling investment opportunity at its current price of 372. The stock has demonstrated strength by closing above key short, mid, and long-term moving averages, specifically the 50, 100, and 200 Exponential Moving Averages (EMA). This confluence of positive price action across various time frames suggests a sustained upward momentum.

Additionally, the Relative Strength Index (RSI) stands at 69, indicating a balanced level of buying and selling pressure. The Average Directional Index (ADX) further supports the bullish sentiment, currently registering at 29, signifying a moderately strong trend. These technical signals collectively point towards a robust potential for further upside movement.

The proposed entry point at 372, coupled with a stop-loss (SL) set at 360, reflects a prudent risk management strategy. This safeguards against unexpected downturns in the market. With a targeted exit point (TGT) set at 386, investors stand to capture potential gains as Fortis is poised for an upward breakout, particularly upon surpassing the critical level of 375.

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.