Trade Call: 2 Buy/Sell Stock Picks By Sumeet Bagadia On Tuesday, 16th April

Due to the diplomatic standoff between Israel and Iran, Indian benchmark indices saw a significant fall on Monday. At 22,273, the Nifty ended the day lower than it began, while the Nifty Bank index also ended lower than it started, at around 47,773 marks. While the domestic market is likely to be prompted by upcoming poll results and the ongoing Q4 results season, the global market will be triggered by the results of China's Q1 GDP growth of 5.3% and the US core retail sales, which surged more than estimated in March.

Nifty Outlook

"From a technical perspective, the index is consolidating in a rising channel pattern on the daily scale, while on the weekly scale, it has formed a shooting star pattern. The lower boundary of the channel pattern is situated around 22,000 levels, making it a significant support level. Overall, we anticipate the index to trade within the range of 22,000 to 23,000 ahead of Q4FY24 earnings, with an immediate hurdle at 22,500," said Asit C Mehta Investment Intermediates Ltd.

Bank Nifty Outlook

"Technically, the Bank Nifty index has formed a doji candlestick pattern on the weekly scale and maintained a position below the low of the doji candle, indicating short-term weakness. Short-term support levels for the Bank Nifty are observed at 47,000 and 46,400, with resistance levels at 48,000 and 49,060," added Asit C Mehta.

Stocks To Buy Today

On Tuesday, April 16, Sumeet Bagadia, executive director of Choice Broking, recommended buying or selling of the two stocks specified here.

Thermax

Buy THERMAX in cash @ Rs 4709.05, stop-loss: Rs 4545, target: Rs 4950

THERMAX daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable higher high and higher low pattern, and the company's recent upward swing has effectively violated the neckline, establishing a new week high. This breakthrough indicates the possibility of a significant follow-through upward increase in the stock price.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The stock formed a strong bullish engulfing candle that engulfed the preceding three-month candle signifying a potential continuation of the uptrend following and the daily strength indicator RSI (14) is moving upwards and positioned above its reference line indicating a positive bias. Furthermore, THERMAX is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given the overall chart pattern, the analysis suggests a favourable long trading opportunity for investors.

Based on the above analysis we recommend buying THERMAX in cash at CMP of 4709.05 for the target of 4950 with a stop loss of 4545.

Exide Industries

Buy EXIDEIND in cash @ Rs 409.05, stop-loss @ 398, target @ 425

EXIDEIND is exhibiting strong bullish momentum, currently trading at an all-time high of 423.65 levels. The recent breakout above the crucial resistance at 400 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, EXIDEIND 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 85.17 levels.

For traders, keeping an eye on the strong support near 398 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, EXIDEIND 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 EXIDEIND and the CMP of 409.05 with a stop loss of 398 for the target of 425.

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.