Stocks To Buy Today: Intraday Technical Picks By Sumeet Bagadia On Tuesday - 22nd October

The Nifty index had a favourable start to the trading day, but it soon came under heavy selling pressure and remained negative. Despite finding some comfort around the critical support level of 24,700, the index was unable to recover entirely and closed 0.29% down, dropping 72 points on Monday. Although the Nifty Bank index had a strong start, it soon came under heavy selling pressure and remained negative for the whole of the trading session. Significant call writers created their positions near the 52,500 mark, providing substantial resistance to the index, which caused it to collapse to an intraday low of 51,855. India VIX increased by 5.56% and ended the day at 13.76. Even if the volatility is still below the crucial 15-point, which usually encourages buying activity, the recent spike in the VIX indicates that market players are more cautious.

Nifty Outlook

"The outlook for Nifty remains cautiously bearish, with the lack of follow-through buying and the index's inability to break above its 10DEMA suggesting that buyers are hesitant. The resistance from call writers around the 24,900-25,000 zone presents a significant obstacle to further gains. A sustained move above 25,000 could shift momentum in favour of the bulls, triggering short covering and potentially leading to stronger upside moves. On the downside, a break below 24,690 may give sellers renewed strength, potentially pushing the index down towards the 24,400-24,300 zone," said Dhupesh Dhameja, Technical Analyst, SAMCO Securities.

Bank Nifty Outlook

"The outlook for the Nifty Bank index remains cautiously positive to sideways as it hovers near its immediate support level of 51,800. Holding above this support is crucial for buyers to maintain control, with additional support provided by the 10-day and 20-day exponential moving averages (DEMA) situated near the same levels. Options data underscores this view, with increased call writing at higher strikes (52,000-52,500) creating a substantial resistance zone. A sustained breakout above the 52,500 mark could prompt short covering, potentially propelling the index toward 52,900. Conversely, dips are likely to attract buying interest as long as the index remains above 51,500. A breach below this level could shift the momentum to sellers, pushing the index towards the 50,000-49,800 range," Dhupesh Dhameja added.

Stocks To Buy Today

The executive director of Choice Broking, Sumeet Bagadia, suggested buying two stocks on Tuesday, October 22, since the Nifty index is still encountering a strong resistance range between 24,900 and 25,000.

Gujarat Fluorochemicals

Buy FLUOROCHEM in Cash @ Rs 4812.65, stop-loss @ Rs 4644, target @ 5150

FLUOROCHEM is currently trading at Rs 4812.65, displaying a strong bullish trend characterized by the formation of higher highs and higher lows. The stock recently broke out of a consolidation range and is now trading near its all-time high, confirming the upward momentum. This breakout is supported by a significant increase in trading volumes, indicating robust buying interest from investors. In the short term, the stock is likely to target Rs 5100.

The Relative Strength Index (RSI) is at 70.93, reflecting strong bullish strength. Despite this, FLUOROCHEM is trading comfortably above its key 20-day, 50-day, and 200-day Exponential Moving Averages (EMA), reinforcing the positive trend.

If FLUOROCHEM sustains above the critical resistance level of Rs 4900, it presents a favorable long trading opportunity. Investors may consider entering a long position with a target price of Rs 5150, while maintaining a stop-loss at Rs 4644 to manage risk effectively. Proper risk management is essential to protect against potential downside, especially given the elevated RSI and the possibility of short-term volatility.

Aegis Logistics

Buy AEGISLOG in Cash @ 744.45, stop-loss @ 719, target @ 796

AEGIS Logistics (AEGISLOG) is currently trading at Rs 744.45 and showing strong bullish momentum. The stock has recently broken out of a falling trendline pattern, typically indicating a potential bullish reversal from a key support zone. This technical breakout is further validated by a significant increase in trading volume, suggesting strong buying interest. A key resistance level to watch is Rs 755-if the stock holds above this level, it could serve as an ideal entry point for long positions.

The Relative Strength Index (RSI) stands at 51.52, signaling a healthy uptrend with room for further growth. Additionally, AEGISLOG is trading comfortably above its 20-day and 200-day Exponential Moving Averages (EMA), and is nearing its 50-day EMA. If the stock surpasses and sustains above this 50-day EMA, it would reinforce the positive trend.

Traders may consider entering at the current price of Rs 744.45, with a stop loss set at Rs 719 and a target price of Rs 796. While this setup presents a compelling opportunity for potential gains, it is important to remain mindful of short-term volatility despite the overall positive technical indicators.

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.