Stocks To Buy Today For Intraday: 2 Stock Picks By Sumeet Bagadia of Choice Broking On Wednesday, 22nd May

Tuesday saw the Nifty begin with a gap down, but following the initial decline, the index saw recovery with a bullish trend and ended the day higher at 22,529 levels. The Bank Nifty started the day down, but after some early trepidation, the index recovered traction but was unable to maintain it, ultimately closing at 48,048 on quite a bearish track. This week's major events for traders to keep an eye on include the US Existing Home Sales figure, the UK inflation data, and the FOMC meeting minutes. All of these will come in a turbulent market that has been sparked by FII selling and higher levels of the India Vix.

Nifty Outlook Today

"All the Strikes from 22,000 until 22,400 saw call writers (Bears) exiting and additional put writing, which led to the steady up move in the Index throughout the day. Strong put writing was observed at the 22,500 Strike in Nifty. The put writers (Bulls) dethroned the call writers (Bears) at the 22,500 Strike today. If put writers (Bulls) manage to keep the call writers (Bears) at bay at the 22,500 Strike then Nifty is likely to move even higher," said Mr. Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.

"On the hourly chart, the index made higher highs and lows, indicating a sustained uptrend. Nifty remains strong unless it falls below 22,400. If the index surpasses 22,600, it could rise to 22,720 levels. Additionally, Nifty is still trading above its 20-day moving average (DMA)," said Om Mehra, Technical Analyst, SAMCO Securities.

Bank Nifty Outlook

"Bank Nifty shrugged off its initial weakness and rose steadily making an Intraday high of 48,260 before profit booking emerged at higher levels that led to the Index closing at 48,048, down 151 points. Strong call writing was observed at the 48,300 & 48,200 Strike in Bank Nifty. An inverted flag and pole like structure is visible on the daily chart in the Index. The option activity at the 48,000 Strike will provide cues about Bank Nifty's direction ahead of the weekly expiry," said Ashwin Ramani.

"On Tuesday, Bank Nifty reversed gains, ending at 48,048.20, down 0.31%. The index formed an inverted hammer on the daily timeframe, signalling a potential bearish signal. However, it managed to close above the psychological level of 48,000. The hourly chart reveals that Bank Nifty could turn slightly bearish if it falls below 47,750. Maintaining above 48,220, on the other hand, would signal a return to the bullish trend. Traders should monitor these key levels for any clear directional movement," Om Mehra commented.

Stocks To Buy Today

Choice Broking's executive director, Sumeet Bagadia, made a recommendation on Wednesday, May 22nd, regarding the buying or selling of two intraday stocks.

Cipla

Buy CIPLA in Cash @ Rs 144, stop-loss: Rs 1390, target: Rs 1545

CIPLA, currently trading at Rs 1443, has recently broken out of a daily trendline on the daily chart. The current price trend suggests robust bullish momentum above Rs 1450, with expectations of further upward movement towards the Rs 1545 level. On the downside, substantial support is evident near Rs 1390.

The Relative Strength Index (RSI) stands at 56, signaling sideways movement. To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 1390 to protect the investment in case of an unexpected market reversal. A prudent strategy involves considering buying opportunities on market dips at levels of Rs 1415.

In summary, considering the technical analysis and prevailing market conditions, CIPLA appears to present a promising buying opportunity for those targeting a Rs 1545 price objective, contingent upon the implementation of prudent risk management measures.

Voltamp Transformers

Buy VOLTAMP in cash @ Rs 12012, stop-loss @ Rs 11666, target @ Rs 12555

VOLTAMP is exhibiting strong bullish momentum, currently trading at an all-time high of 12155 levels. This breakout has been accompanied by a consolidation of the upward movement, characterized by higher highs and higher lows, supported by robust trading volumes, reinforcing the strength of the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, VOLTAMP 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 74.88 levels.

For traders, keeping an eye on the strong support near 11666 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, VOLTAMP 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 VOLTAMP and the CMP of 12012 with a stop loss of 11666 for the target of 12555.

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.