Buy/Sell: 2 Trade Calls By Sumeet Bagadia On Tuesday, 6th Feb

Domestic stocks had a subdued trading session on Monday ahead of the commencement of the RBI policy meeting on Tuesday. The Nifty ended 82.10 points or 0.38 per cent lower at 21,771.70, while the Sensex settled 354.21 points, or 0.49 per cent lower at 71,731.42 at the closing. The oil and gas, pharmaceutical, automobiles, and healthcare sectors were among the top performers, while consumer durables, FMCG, and IT sectors were the worst performers. The volatility index increased by 6% to 15.62. Tata Motors, Coal India, BPCL, Sun Pharma, and Cipla were among the top gainers on the Nifty, while UPL, Bharti Airtel, Bajaj Finance, HDFC Life, and Grasim Industries were among the top losers.

Nifty Outlook

Kuanl Shah, Senior Technical & Derivative Analyst, LKP Securities said, "The Nifty index has formed a double top pattern on the daily chart, signaling a potential cautionary stance for traders. The resistance level is identified at 22,200, and a decisive break above this on a closing basis could invalidate the bearish outlook. Conversely, the support for the index is situated at 21,650, coinciding with its 20DMA (20-day moving average). A breach below this support level might intensify selling pressure in the market."

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "The Bank Nifty index is currently in a bearish territory, encountering formidable resistance at 46,500. The index's immediate support is positioned at 45,400, and a breach below this level is anticipated to trigger additional selling pressure. The index persists in a "sell on rise" mode unless it convincingly surpasses the 46,500 mark on a closing basis."

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking, recommended buying Brigade Enterprises and Gulf Oil Lubricants India shares on Tuesday, February 6.

Brigade Enterprises

Buy BRIGADE in cash @ Rs 1035, stop-loss: Rs 1010, target: Rs 1077

BRIGADE has recently experienced a significant breakthrough above the crucial resistance zone ranging from 999 to 1015 on the daily chart. This breakout has been accompanied by a consolidation of the upward movement, characterized by higher highs and higher lows. The strong bullish sentiment is further validated by a noticeable surge in trading volume.

Key technical indicators, particularly the Relative Strength Index (RSI), highlight the positive momentum in the stock. The RSI not only indicates favourable trends but also aligns with the stock trading above important moving averages, including the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). This convergence underscores the continued strength in BRIGADE price action.

In summary, the decisive breakout, along with encouraging volume and the positive alignment of key technical indicators, suggests a bullish outlook for BRIGADE. Traders and investors may interpret this analysis as indicative of potential sustained upward momentum in the stock.

Considering the above analysis, we recommend BRIGADE in cash at the current market price (CMP) of 1035, setting a target of 1077, and implementing a stop loss at 1010.

Gulf Oil Lubricants India

Buy GULFOILLUB in cash @ Rs 918, stop-loss @ Rs 896, target @ Rs 948

GULFOILLUB is exhibiting strong bullish momentum, currently trading at a 52-week high of 918 levels. The recent breakout above the crucial resistance at 820 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength of the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, GULFOILLUB is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 88 levels.

For traders, keeping an eye on the strong support near 896 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, GULFOILLUB current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying GULFOILLUB and the CMP of 918 with a stop loss of 896 for the target of 948.

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.