Trade Call: Sumeet Bagadia Recommends 2 Stocks To Buy/Sell On Wednesday, Dec 13

The trading session on December 12 saw Indian equity indices finish lower after retail inflation data. At closing, the Nifty dropped 90.70 points, or 0.43 per cent, at 20,906.40, while the Sensex dropped 377.50 points, or 0.54 per cent to settle at 69,551.03.

The top losers were Apollo Hospitals, HDFC Life, UltraTech Cement, Bajaj Auto, SBI Life Insurance, and Axis Bank; the top winners were Coal India, Maruti Suzuki, Sun Pharma, and Eicher Motors. In the broader market front, the BSE smallcap index dropped 0.27 per cent and the midcap index dropped 0.4 per cent. All sectoral indices ended in the negative, with the exception of Metal, PSU Bank, and media, and Nifty realty ranking lowest among them.

Market Outlook

"Finally, bears had something to cheer for. After registering a fresh high of 21,037.90, a reversal was seen in the markets and the Index kept compounding its losses throughout the day to settle at 20,906.40 with a loss of 90.70 points. Among the sectors, Media was the top performer followed by Metal; and, on the flip, Realty and Energy were the major laggards.

For the past couple of days, the Index has been trading with a negative divergence, and today, the Index breached its strong support level and made a bearish engulfing pattern at the record levels which suggests a short-term top has been made and a minor correction (profit-taking) can be anticipated. The immediate hurdle stands at 21,020 while the downside is protected at 20,760," said Mr. Aditya Gaggar Director of Progressive Shares.

Nifty Outlook Today

Rupak De, Senior Technical analyst at LKP Securities said, "The Nifty has formed a bearish engulfing pattern on the daily chart, suggesting a possibility of a bearish reversal. On the higher end call writers have built a heavy position at 21000. On the lower end, put writers are heavily present at 20,800 and 20,900. Therefore, the Nifty is likely to remain mostly sideways to negative as long as it remains below 21000. Only a decisive move above 21,000 might induce a resumption of the uptrend. Support is placed at 20,800, below which the index may consolidate further."

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "The Bank Nifty index encountered resistance at higher levels, facing selling pressure and struggling to breach the 47500 mark. The lower-end support for the index is positioned at 46800, and a decisive break below this level could trigger additional downside movement toward the 46400 level. With weekly expiry approaching, heightened volatility is anticipated. Traders are advised to exercise caution and implement strict stop-loss measures on both sides of the market."

Stocks To Buy Today

On Wednesday, December 13, Choice Broking's executive director, Sumeet Bagadia, recommended purchasing two stocks. Redington and Colgate-Palmolive Company's entry price, stop loss, and target price are listed below.

Colgate-Palmolive

Buy COLPAL in cash @ 2336.45 SL @ 2265 TGT 2455

Colgate-Palmolive (COLPAL) has exhibited a noteworthy rebound from the support level of 2265, currently trading at approximately 2336.45 levels. The stock's positioning above its 20-Day, 50-Day, and 200-Day Exponential Moving Averages (EMA) signals a positive trend, reflecting strength in its current trajectory. The momentum indicator, Relative Strength Index (RSI), comfortably rising to 71 levels, underscores the stock's robust performance.

A minor resistance is observed at 2348 levels, coinciding with the stock's all-time high. A successful breach of this level could propel COLPAL towards the target of 2455 and beyond, suggesting further potential upside.
Investors and traders may find this technical analysis valuable for assessing COLPAL's current strength and potential future movements. However, it's essential to consider broader market conditions and conduct thorough research before making investment decisions.

Based on the above analysis we expect COLPAL to move higher towards 2455 and hence we recommend buying COLPAL at a CMP of 2336.45 with a SL of 2455.

Redington

Buy REDINGTON in cash @ 175.30 SL @ 168 TGT @ 190

REDINGTON is presently trading at 175.30. The stock has broken out above 168 levels, which is currently a significant support for the REDINGTON. The stock is also trading above its short-term (20 Day) Medium-term (50 Day) and long-term (200 Day) Exponential Moving Averages (EMA) levels, signalling strength. On the weekly chart, the RSI momentum indicator is rising and is now trading at 60. REDINGTON has a little resistance at 179 levels.

Once the stock crosses the indicated resistance, it can move higher towards the target price of 190 and above.
Based on the above-mentioned technical analysis we advise buying REDINGTON in cash at CMP of 175.30 with a SL of 168 for the target of 190.

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.