Stock Advice: Sumeet Bagadia Recommends 2 Stocks To Trade On Monday, 23rd Oct

Aditiya Gaggar director of Progressive Share said, "Broadly, the Index is oscillating in a wide range of 19,490-19,850; breakout in either direction will give more clarity to the trend. Change in Polarity (where the previous resistance becomes a support) can be expected in BankNifty as it stands at a strong support level of 43,600 while on the higher side, the immediate hurdle is at 44,200.

From the Auto segment, heavyweights such as Bajaj Auto and Hero Motocorp gave a strong breakout with volumes, one can buy at CMP or on a pullback. The PSU Banking sector has given a breakdown from the Head and Shoulder formation which indicates further downside is on the cards. A small correction was seen in the Realty space in the form of a pullback; however, an overall uptrend is intact. The Metal sector is forming a Head and Shoulder pattern and in the case of a breakdown, a sharp fall can be anticipated in the sector."

Nifty Outlook Next Week

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "Nifty opened with a gap down but consolidated in the 19,520-19,590 range throughout the day and closed at 19,543, down 82 points. The Put-Call Ratio (PCR) has fallen from 1.44 on 29th September to 0.77 on 20th October, indicating call writers' strength since the start of October Series Expiry.

Strong call writing was observed at 19,600 Strike while a decent amount of put writing was observed at 19,500 Strike, keeping the Nifty range bound. The level of 19,500 is a key support level for Nifty. A break below 19,500 can lead to initiation of fresh shorts which can take the Index until 19,400 levels."

Bank Nifty Outlook

Ashwin Ramani said "Bank Nifty was set to go past the key level of 43,800 before selling pressure led to the Index closing at 43,723, down 31 points. The option activity at 43,500 Strike will provide cues about future direction of Bank Nifty. A break below 43,500 will lead the next round of selling while a close above 44,000 is required for the bulls to comeback."

Stocks To Buy On Monday

Sumeet Bagadia, Executive Director at Choice Broking has suggested two shares to buy or sell on Monday, 23rd October 2023.

MTAR Technologies

Buy MTARTECH in cash @ Rs 2732, stop-loss @ Rs 2675, target @ Rs 2834

MTARTECH is currently exhibiting strong technical indicators that signal a potential bullish trend. The stock is presently quoted at 2732, having recently experienced a breakout at 2682, which is a positive sign of upward momentum.

Moreover, MTARTECH has successfully closed above critical short, mid, and long-term moving averages, including the 20, 50, 100, and 200 Exponential Moving Averages (EMA), affirming its robust position in the market.
The Relative Strength Index (RSI) stands at 65 and is displaying an upward trajectory, indicating increasing buying interest and potential for further price appreciation. This aligns with the ascending triangle breakout pattern observed, further bolstering the bullish sentiment surrounding the stock.

The Average Directional Index (ADX) is notably robust at 33, underscoring the strength of the prevailing trend. This signifies a significant level of directional movement and a potential extension of the current momentum.
Given these technical observations, a prudent trading strategy could involve considering a buy entry at 5489, with a stop-loss set at 5350 to manage risk. The target price is reasonably set at 5680, reflecting the potential upside based on the current technical conditions.

IndusInd Bank

Buy INDUSINDBK in cash @ Rs 1469, stop-loss @ Rs 1412, target @ Rs 1560

INDUSINDBK is trading at 1469. On the daily chart, the price is exhibiting a consolidation phase near a resistance level, forming a rectangular pattern. This pattern suggests that the price may be primed for a potential breakout.
If the price effectively closes above the 1480 level, it could signal a short-term target of 1560. Such a breakout might indicate the initiation of a bullish momentum. It's important to watch the critical support at 1415 for potential reversals or other market developments.

Additionally, INDUSINDBK is currently trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This reinforces its bullish momentum and implies the possibility of further upward price movement.

The Relative Strength Index (RSI) is presently at 59 and trending upwards, indicating increasing buying momentum. Furthermore, the Stochastic Relative Strength Index (Stoch RSI) has recently shown a positive crossover from the oversold region. This confluence of technical indicators suggests that INDUSINDBK may have the potential to reach a target price of Rs 1560 in the near term.

To prudently manage risk, it is advisable to implement a stop-loss (SL) at Rs 1412 to protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and current market conditions, INDUSINDBK seems to offer an attractive buying opportunity for those aiming for a Rs 1560 price target, provided that sound risk management strategies are in place.

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.