Buy or Sell: Day Trading Technical Picks By Sumeet Bagadia On Saturday, 20th Jan

The Indian benchmark indices broke their three-day losing run on Friday as global cues rebounded. The Sensex gained 496.37 points, or 0.70 per cent to settle at 71,683.23, while the Nifty gained 160.10 points, or 0.75 per cent to close at 21,622.40. All sectors, with the exception of bank, media, and private bank, had risen in the sectoral indices, with the most significant advances being recorded in the oil and gas industry, which was followed by metal and FMCG.

IndusInd Bank, HDFC Bank, Kotak Mahindra Bank, Adani Enterprises, and Adani Ports were among the top losers on the Nifty, while ONGC, Bharti Airtel, NTPC, Tech Mahindra, and SBI Life Insurance were among the top gainers. On the broader market front, BSE Mid Cap & Small Cap index ended the day 1% higher.

Market Outlook

"Nifty50 has formed a bearish engulfing candlestick pattern on the weekly chart; however, on the daily chart, hidden bullish divergence suggests a trend reversal. For the time being, we believe that the Index will oscillate in the range of 21,300-22,000. The short-term trend of BankNifty has turned negative but Q3 earnings of heavyweights will decide the future trend. From the Energy segment, we continue to remain bullish on HindPetro, ONGC, and Reliance.

Tech Mahindra from the IT sector has given a classic breakout from a Cup and Handle formation and has completed a pullback move, which suggests resumption of an uptrend. Some of the stocks from the Power segment have shown a sign of an extension of the current uptrend (PFC & REC- Symmetrical Triangle Breakout, JSW Energy- Flag and Pole Breakout).

Investors should keep an eye on the Paper stocks as some of the counters have given a strong breakout with considerable volumes (JKPaper). The trend of the Railway stocks is strong but currently it is extremely overstretched; hence, it is advised to book partial profits," said Mr. Aditya Gaggar, Director of Progressive Shares.

Nifty Outlook

The Nifty remained sideward throughout the session following a strong start. The index has moved back above critical near-term moving average. In the short term, the index is likely to consolidate within the bands of 21500 and 21700. A decisive breakout on either side would confirm a directional move, said Rupak De, Senior Technical Analyst, LKP Securities.

Bank Nifty Outlook

The Bank Nifty is currently witnessing a bearish trend, with bears exerting dominance from higher levels. The index encounters strong resistance around the 46300 mark, posing a significant hurdle for any upward movement. Active put writing indicates a lower-end support at 45500; however, breaching this level may intensify selling pressure. Additionally, the index is trading below short-term moving averages, signaling a bearish sentiment in the current market scenario, stated Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Stocks To Buy Today

In honour of the public holiday declared for the Ram Temple's "Pran Pratishtha" ceremony in Ayodhya, the Indian stock market will be closed on Monday, January 22. It will be available for trade on Saturday from 9 a.m. to 3:30 p.m. On account of the same, Sumeet Bagadia, executive director of Choice Broking, suggested buying two stocks.

Larsen and Toubro

Buy LT in cash @ Rs 3645, stop-loss: Rs 3624, target: Rs 3754

LT is currently trading at Rs 3610. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of Rs 3600 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching Rs 3754 levels. On the downside, substantial support is evident near Rs 3624.

Furthermore, LT is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 68, signalling an upward trajectory and confirming an increase in buying momentum.

Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively support the notion that LT may have the potential to achieve a target price of Rs 3754 in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 3624 to protect the investment in case of an unexpected market reversal.

In summary, considering the technical analysis and prevailing market conditions, LT appears to present a promising buying opportunity for those targeting a Rs 3754 price objective, contingent upon the implementation of prudent risk management measures.

Apollo Hospitals Enterprise

Buy ApolloHosp in cash @ Rs 6120, stop-loss: Rs 6061, target: Rs 6229

ApolloHosp has recently experienced a significant breakthrough above the crucial resistance zone ranging from 5900 to 5955 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 ApolloHosp price action.

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

Considering the above analysis, we recommend ApolloHosp in cash at the current market price (CMP) of 6120, setting a target of 6229, and implementing a stop loss at 6061.

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.