Stocks To Buy Today: Intraday BUY/SELL Calls By Sumeet Bagadia On Monday, 16th December

After a notable decline in the early trade, the Nifty saw an impressive rebound of over 2% from the day's low during the last trading session on Friday, closing with gains of 220 points at 24,768 (+0.9%). With a gain of 0.69%, Nifty Bank ended the day higher at 53,583.80, continuing to follow the daily chart's higher high and higher low trend. A gauge of market volatility, the India VIX, dipped 1.04% to 13.05, indicating a drop in investor fear. Even though the VIX hasn't gained much traction yet, the wider notice is bullish because it's still below the 15 level. On Monday, we will see the publication of the US and Indian manufacturing and services PMI as well as the domestic WPI inflation, which will be the main events of the day and will thus keep traders busy.

Nifty Outlook Today

"The Nifty index has now decisively shifted toward a bullish stance, recovering sharply from intraday lows and closing above the highs of the past five sessions. This recovery from the inverse head-and-shoulders neckline and sustained trading above the 20-DEMA suggest active buying interest at lower levels. The RSI's climb above 60 reinforces the building bullish momentum. Immediate resistance is seen at 24,850, and a breakout above this level could trigger short covering, potentially driving the index toward the critical 25,000 mark. On the downside, the 24,500-24,400 range, bolstered by significant put writing, remains a strong support zone. As long as the index sustains above this level, buyers are likely to maintain control, making "buy on dips" a viable strategy. Weakness may only emerge if the index breaches this support," commented Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities.

Bank Nifty Outlook Today

"Nifty Bank index has shifted decisively into bullish territory, displaying a strong recovery from intraday lows and sustaining above its 10-20 DEMA. This price action confirms the presence of buyers at lower levels. The retracement to its previous breakout zone and the subsequent strong close above it further validate the bullish momentum. The RSI trading above 60 reinforces the positive sentiment and indicates an upward momentum build-up. Immediate resistance is observed at 53,750-53,800, and a breakout above this range could lead to short covering, potentially propelling the index toward its major resistance of 54,400. The key support level at 53,000, backed by active put writing, remains intact. As long as the index holds above this level, buyers are expected to maintain control, and a "buy on dips" strategy could be advantageous. Weakness is likely to emerge only if the index breaches this support level," stated Dhupesh Dhameja.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, suggested purchasing two stocks on Monday, December 16, following the Nifty's resilience above the key resistance level of 24,750, which opened the door for a possible rise above the psychological level of 25,000.

The Ramco Cements

Buy RAMCOCEM in Cash @1040.70 SL @ 1004 TGT @ 1114

RAMCOCEM is currently trading at Rs 1,040.70, exhibiting a strong bullish trend characterized by the formation of higher highs and higher lows. The stock has formed a bullish engulfing pattern and is on the verge of breaking its key resistance level at Rs 1,050. A breakout above this level is likely to confirm the upward momentum. This pattern is further supported by increased trading volumes, indicating strong buying interest among investors. In the short term, the stock is expected to target Rs 1,114.

The Relative Strength Index (RSI) is at 68.95 and trending upward, reflecting robust bullish strength. Additionally, RAMCOCEM is trading comfortably above its 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs), which further reinforces the positive trend.

Given this favorable technical setup, buying RAMCOCEM at the current price of Rs 1,040.70 presents a promising opportunity for potential gains. To manage risk effectively, a stop-loss can be placed at Rs 1,004. The combination of rising trading volumes, a strengthening RSI, and supportive moving averages aligns well with the bullish scenario, making this strategy suitable for the current market conditions.

Indian Hotels Company

Buy INDHOTEL in Cash @855.6 SL @ 825 TGT @ 916

Indian Hotels Company Ltd. (INDHOTEL) is currently trading at Rs 855.6 and is exhibiting a strong bullish trend, reaching new all-time highs. After consolidating within a range of Rs 830-Rs 850 for the past three days, the stock has broken out decisively, signaling potential bullish momentum. This breakout is further validated by a significant increase in trading volumes, reflecting strong buying interest from investors.

The Relative Strength Index (RSI) is at 78.71 and trending upward, indicating robust buying momentum and a healthy uptrend. The stock is trading above its key moving averages, including the 20-day, 50-day, 100-day, and 200-day EMAs, which reinforces the bullish sentiment. Sustaining above the key resistance level of Rs 880 could provide additional confirmation of upward momentum.

Given the favorable technical setup, traders may consider buying INDHOTEL at the current price of Rs 855.6, with a short-term target of Rs 916. To manage risk effectively, a stop-loss should be placed at Rs 825, accounting for potential short-term volatility. This trade setup is supported by strong technical indicators and market momentum, making it a compelling opportunity for traders.

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.