Trade Call: 2 Stock Picks On Tuesday, April 23 By Sumeet Bagadia of Choice Broking

Strong global cues and ease in conflicts between Israel and Iran aided the Nifty index to start the day significantly higher on Monday. Ultimately, the Nifty ended the day at 22,336, a positive number. The Nifty Bank index had a strong opening gap and continued to rise throughout the day, wrapping up at about 47,925. With PSU Banks and consumer durables, the majority of sectors ended in the green such as stocks of capital goods, pharmaceuticals, automobiles, and fertiliser. While Q4 results from major corporations like TATA Consumer Products, ICICI Prudential Life Insurance Company, Tata Elxsi, and Mahindra & Mahindra Financial Services are being released today, the US will be releasing GDP and core PCE data this week, which will trigger the market sentiment.

Nifty Outlook

Rupak De, Senior Technical Analyst, LKP Securities said, "Bulls continued to dominate the market as the Nifty gained for the second consecutive session. The trend has turned positive after reclaiming a critical near-term moving average. Sentiment is expected to remain favorable for bulls as long as it stays above 22,150. On the upside, the index could potentially move towards 22,600-22,700. Conversely, a drop below 22,150 could lead to consolidation in the index."

Bank Nifty Outlook

"The BankNifty index exhibited continued bullish strength as it witnessed follow-up buying from lower levels. Currently, it is approaching a crucial resistance level around 48000, marked by the highest open interest on the call side. A decisive break above this level is anticipated to trigger further short covering moves. Meanwhile, immediate support lies at 47600-47500 levels, suggesting that any dip towards this support zone could present a buying opportunity," said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Stocks To Buy Today

Choice Broking's executive director Sumeet Bagadia recommended buying or selling 2 stocks on Tuesday, April 23, based on technical research.

Shaily Engineering Plastics

Buy SHAILY in cash @ Rs 612.25, stop-loss: Rs 588, target: Rs 645

SHAILY 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 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, SHAILY 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 SHAILY in cash at CMP of 612.25 for the target of 645 with a stop loss of 588.

VA Tech Wabag

Buy WABAG in cash @ Rs 1005.15, stop-loss @ Rs 965, target @ Rs 1077

WABAG is exhibiting strong bullish momentum, currently trading at an all-time high of 1017.05 levels. The recent breakout above the crucial resistance at 950 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, WABAG 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 78.3 levels.

For traders, keeping an eye on the strong support near 965 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, WABAG 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 WABAG and the CMP of 1005.15 with a stop loss of 965 for the target of 1077.

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.