Stocks To Buy: Trade Call On Wednesday, 21st August By Sumeet Bagadia Of Choice Broking

The key benchmark indices began the day higher, following global trends. The Nifty began the day higher and remained bullish the entire time, wrapping up at 24,699 on a positive note. Additionally, the Bank Nifty showed constant buying activity and opened with a gap higher. As a result, the index closed the day at 50,803 on a high note. Investors should exercise caution while observing market patterns, as this week's FOMC minutes and Japan inflation statistics are likely to impact market sentiment.

Nifty Prediction

"From a technical standpoint, the benchmark index managed to fill the first bearish gap on the daily chart, construing a positive development. Looking ahead, Nifty is likely to encounter resistance around the subzone 24800-24850, after which another set of bearish gap is situated. On the downside, the pivotal zone 24600-24500 is anticipated to act as a support level for any short-term decline, followed by the 20-day EMA positioned around 24400," said Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One Ltd.

Market Outlook

"We maintain a positive outlook and view potential market downturns towards the specified support levels as favorable for bullish sentiment. It is important to closely monitor the positioning of key indices, which are at a critical juncture, and make necessary adjustments to our trading approach. Additionally, it is advisable to actively track global developments as they are likely to influence the intermediate tone of our markets," said Osho Krishan.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, recommended buying two stocks based on a technical study.

HDFC AMC

Buy HDFCAMC in cash @ 4298.75, stop-loss @ 4141, target @ 4499

HDFCAMC is exhibiting strong bullish momentum, currently trading at a 52-week high of 4316.95 levels. The recent breakout above the crucial resistance at 4235 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, HDFCAMC 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 62 levels.
For traders, keeping an eye on the strong support near 4141 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, HDFCAMC 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 HDFCAMC and the CMP of 4298.75 with a stop loss of 4141 for the target of 4499.

Voltas

Buy VOLTAS in cash @ 1659.15, stop-loss 1600, target: 1745

VOLTAS daily chart analysis reveals a notable shift in market dynamics, transitioning from a period of minor declines and sideways consolidation to a promising upside bounce. The current trading session reflects an up move, potentially signalling an upside breakout from a narrow range momentum. This development aligns with a positive short-term trend, further reinforced by a surge in trading volume.

Key technical indicators, such as the Relative Strength Index (RSI), underscore the stock's positive momentum. The RSI not only exhibits positive signals but the stock is also trading above crucial moving averages-specifically, the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). This convergence suggests sustained strength in VOLTAS price action.

Volume analysis further substantiates the credibility of the up move, with a pronounced increase accompanying the positive trend.

The comprehensive evaluation of VOLTAS daily chart implies the existence of a broader bullish pattern in the stock price. This, in turn, presents a compelling long trading opportunity for investors seeking to capitalize on the anticipated upward trajectory.
Based on the above analysis we recommend buying VOLTAS in cash at CMP of 1659.15 for the target of 1745 with a stop loss of 1600.

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.