Trading Guide: 2 Buy/Sell Recommendations By Sumeet Bagadia On Tuesday, 19th March

The Nifty 50 managed to preserve its grip above the 22,000 level throughout Monday's turbulent trading session in the market, helped by noteworthy advances from industry giants like Tata Steel, Tata Motors, and M&M. The Nifty climbed 32 points to close at 22,056, while the Sensex gained 105 points to close at 72,748. On the other hand, the broader market underperformed, as the Nifty Bank fell 18 points to 46,576 and the Midcap Index fell 184 points to 46,501. Investors will be watching important central bank meetings this week, with the Bank of Japan scheduled to announce its decision on Tuesday. They will also be keeping an eye on economic data, such as European CPI data.

Nifty Outlook

"The put writers (Bulls) held on to the 22,000 Strike in Nifty. The level of 22,000 is where the maximum put open interest is placed. Nifty tested the 22,000 level thrice in the last three trading sessions and managed to close successfully above it. Nifty can come under selling pressure if put writers (Bulls) square off their positions from this strike price," said Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.

"Technically, the range is wider as bulls will be active if the Nifty closes decisively above 22,200 levels while bears want to drive the price below 21,900. RSI stays below the average line and stays neutral. Major support is still placed within the 21,850-21,900 range while resistance remains at 22,200," stated Om Mehra, Technical Analyst, SAMCO Securities.

Bank Nifty Outlook

"Bank Nifty fell sharply in the first half, making an Intraday low of 46,022 before recovering sharply to close at 46,576, down 18 points. The put writers (Bulls) strengthened their position at 46,500 Strike in Bank Nifty. However, Bank Nifty has given a consecutive close below the 50-Day Exponential Moving Average (DEMA) of 46,603 today. A strong close above today's high of 46,739 can ignite buying interest in the Index," stated Ashwin Ramani.

"Bank Nifty settled at 46,575.90 with a marginal decline. Bank Nifty tested the 200-day moving average (DMA) support but there was a good recovery in private banks from lower levels while PSU banking stocks continued to underperform. The immediate support for Bank Nifty remains at 46,000 while the resistance is placed at 47,050 followed by 47,250 levels," stated Om Mehra.

Stocks To Buy Today

On Tuesday, March 19, Sumeet Bagadia, Executive Director of Choice Broking, suggested a trading strategy for the shares of Crisil and Glenmark Pharmaceuticals.

Crisil

Buy CRISIL in cash @ Rs 5223.55, stop-loss @ 5050, target @ 5550

CRISIL is currently trading near its all-time high at Rs 5250, showcasing a pattern of establishing rounding bottom breakout, accompanied by robust trading volume. This trend signals strong momentum in the stock. There is potential for CRISIL to attain a target price of Rs 5550 in the near term, making it advisable to consider purchasing on dips, particularly around Rs 5160.

Furthermore, CRISIL is positioned above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This alignment above these crucial EMAs enhances the bullish outlook, suggesting the possibility of a sustained upward price movement.

To effectively manage risk, it is recommended to implement a stop-loss (SL) at Rs 5050. This precautionary measure is crucial to safeguard your investment in the event of an unexpected market reversal.

In summary, considering the technical analysis and current market conditions, CRISIL appears to present an attractive buying opportunity for those aiming for a Rs 5550 price target, provided that prudent risk management measures are in place.

Glenmark Pharmaceuticals

Buy GLENMARK in cash @ Rs 939.65, stop-loss @ 905, target @ 1000

GLENMARK Pharmaceuticals, presently trading at 939.65 levels, demonstrates a robust technical position with a notable support base at 905 levels. The recent close above the initial resistance at 935 signals a potential breakout in the stock.

Momentum, as indicated by the Relative Strength Index (RSI) at 56.62, is on an upward trajectory, affirming the stock's underlying strength. Moreover, GLENMARK is trading above all significant moving averages, underscoring its positive trend.

This technical analysis suggests a favourable outlook for GLENMARK Pharmaceuticals, with the identified support levels and breakout indicators. Investors and traders may find value in monitoring the stock's performance, considering the support, resistance, and momentum dynamics for informed decision-making.
Based on the above analysis we advise buying GLENMARK at CMP of 939.65 with a stop loss of 905 for the target of 1000.

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.