Stocks To Buy Today: Intraday BUY/SELL Calls By Sumeet Bagadia On Tuesday, 31st December

While the Nifty Bank index had a very tumultuous session, falling by 0.70% (-358.55 points) to close at 50,953 after reaching an intraday high of 51,979.75, the Nifty saw a mild decline of 0.70% (-168.50 points) to close at 23,644 on Monday after reaching an intraday high of 23,915.35. The India VIX, a crucial indicator of market volatility, surged by 5.55% to 13.97, indicating that traders are becoming more cautious. However, even if the VIX is still below the crucial 15-mark, indicating a cautious stance, the possibility of a prolonged upward trend seems limited.

Nifty Outlook Today

"Nifty continues to trade within a restrained sideways-to-bearish trajectory. Its narrow price movements, coupled with repetitive indecisive candlestick formations, reflect a lack of definitive direction. Persistent selling pressure at higher levels has prevented any significant recovery. The close below the 200-DEMA and the previous five-day low highlights aggressive selling activity, with minor rallies being utilized to build fresh short positions. The 23,900-24,000 range, bolstered by heavy call writing, serves as a formidable obstacle. Conversely, the 23,500-23,550 band, supported by notable put writing and a crucial swing low, acts as a reliable defence for the bulls. A breakout above 24,000 could ignite short-covering, potentially propelling the index toward 24,500. However, unless such a breakout materializes, adopting a "sell on rise" strategy appears prudent. A breach below 23,500 could intensify bearish momentum, driving the index toward the 23,150-23,000 territory, where robust put writing provides additional support," commented Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities.

Bank Nifty Outlook Today

"Nifty Bank continues to exhibit a sideways-to-bearish bias. The constrained price movements, coupled with repeated indecisive candlestick patterns, highlight a lack of clear direction. The index displayed pronounced weakness as recovery efforts were consistently met with selling interest at higher levels, with prices facing rejection from the 10-DEMA. The 51,700-51,800 resistance zone, fortified by substantial call writing, remains a major hurdle for bulls. Conversely, the 50,900-50,700 range, supported by notable put writing, serves as a key defence for bulls aiming for a reversal. For any meaningful recovery, the index must sustain a breakout above 51,800, which could trigger a short-covering rally, potentially driving it to the 52,500 mark. Until such a breakout occurs, a "sell on rise" approach remains advisable. A breach below the 50,700 level, however, could accelerate bearish momentum, pulling the index toward the 50,000-50,200 zone, where robust put writing provides additional support," said Dhupesh Dhameja.

Stocks To Buy Today

Following the Nifty index's Monday closing below the previous five-day low and the 200-day exponential moving average (200-DEMA) further strengthening the downward sentiment, Choice Broking's executive director, Sumeet Bagadia, recommended buying two stocks on Tuesday, December 31.

Newgen Software Technologies

Buy NEWGEN in cash @ 1705.85, Stop-loss @ 1645, Target @ 1818

NEWGEN is showing strong bullish momentum, currently trading at its all-time high of 1730. The chart reflects a solid uptrend with positive market sentiment. The stock has consistently moved upward, forming higher highs and higher lows, supported by a bullish engulfing pattern. Recently, the price has approached Rs 1705.85, riding the wave of bullish strength. supported by robust trading volumes, reinforcing the strength in the stock.

Additionally, NEWGEN 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 75.52 levels.
For traders, keeping an eye on the strong support near 1645 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, NEWGEN 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 NEWGEN and the CMP of 1705.85 with a stop loss of 1645 for the target of 1818.

PG Electroplast

Buy PGEL in cash @ 1008.4, Stop-loss @ 970, Target @ 1090

PGEL is currently positioned at 1008.4 levels and has shown robust upward momentum. The stock's recent breakout was supported by significant trading volume, indicating strong investor interest. The chart reveals a steady climb, with the 20-day EMA trending upward and converging towards the 50-day and 100-day EMAs. This alignment of moving averages suggests a continuation of the bullish trend if supported by further buying pressure., affirming its inherent strength.

While facing a minor resistance at 1020 levels, a breakout beyond this threshold could pave the way for further upward momentum. Sustaining levels above 1020 may propel the stock towards the next target at 1090 levels, presenting a promising outlook for investors.

Reinforcing the positive sentiment, the Relative Strength Index (RSI) comfortably rests at 74.62 levels, indicating a favourable balance between buying and selling pressures. The technical parameters collectively suggest a constructive environment for PGEL, encouraging potential bullish movements in the near term. Investors may find opportunities in this upward trajectory, particularly on confirmation of a sustained breakthrough above the resistance level.

Based on the above technical analysis we recommend buying PGEL at CMP of 1008.4 for a medium-term outlook with a stop loss of 970 for targets of 1090.

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.