Trade Call: 2 Technical Intraday Stock Picks By Sumeet Bagadia On Thursday, 18th April

Tuesday saw an extension of the fall in Indian equity benchmarks due to negative global signals amid persistent geopolitical concerns. At 22,148, the Nifty index ultimately ended the day worse than it started. The Nifty Bank had a negative opening and continued to decline over the day, wrapping up at 47,485 levels. Since the Q4 earnings season has already begun and major companies like Infosys, Bajaj Auto, HDFC Life Insurance Company, and ICICI Securities will be releasing their results today, the market is likely to remain volatile as long as the conflict between Iran and Israel alleviates. As a result, there may be some corrections in the market today despite weak global cues.

Nifty Outlook

Rupak De, Senior Technical Analyst, LKP Securities said, "Technically, the trend has weakened as the index fell below the 21EMA. However, following the sharp decline, the index may find short-term support within the 21930-22030 bands, where previous congestion occurred. Conversely, failure to maintain support at 21930 could exacerbate panic in the market. On the higher end, resistance for the short term is positioned at 22400."

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "The Bank Nifty index, after a shaky start, witnessed a recovery in the latter half of the session and managed to close above its 20-day moving average (20DMA), which is situated at 47,500. If the index sustains above the 47,500-47,400 range, it could experience a pullback towards the 48,000 level. However, a break below 47,300 on a closing basis might trigger further selling pressure, potentially driving the index down towards the 46,500 level."

Stocks To Buy Today

Based on technical analysis, Choice Broking's executive director Sumeet Bagadia suggested buying or selling the two stocks on Thursday, April 18.

Tega Industries

Buy TEGA in cash @ Rs 1421.15, stop-loss: Rs 1388, target: Rs 1499

TEGA has recently experienced a significant breakthrough above the crucial resistance zone ranging from 1300 to 1380 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 TEGA price action.

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

Considering the above analysis, we recommend TEGA in cash at the current market price (CMP) of 1421.15, setting a target of 1499, and implementing a stop loss at 1388.

Aurobindo Pharma

Buy AUROPHARMA in cash @ Rs 1111.10, stop-loss: Rs 1070, target: Rs 1190

AUROPHARMA is exhibiting resilience, having rebounded from the support range of 1070-1080 levels which is also close to its 20 and 50 Day EMA levels, indicating underlying strength in the stock. Currently trading at 1111.10 levels, it maintains positions above crucial moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs, signalling a bullish sentiment.

The momentum indicator has also rebounded, with the Relative Strength Index (RSI) currently at 57.10 levels and trending higher, further affirming positive momentum in the stock.

Looking ahead, a minor resistance is anticipated near 1145 levels. Upon surpassing this level, AUROPHARMA is poised to move towards the target price of 1190 and beyond.

Investors may consider accumulating positions in AUROPHARMA, capitalizing on the recent bounce from support levels. However, prudent risk management practices entail setting stop-loss levels to mitigate potential downside risks. Monitoring price movements around the resistance level of 1145 will be crucial in gauging the stock's ability to sustain its upward momentum and validate the bullish outlook.

With a short to medium term outlook one can buy AUROPHARMA at CMP of 1111.10 with a SL of 1070 for a target price of 1190.

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.