Stocks To Buy Tomorrow: Intraday Technical Picks By Sumeet Bagadia On Monday - 21st October

Equity benchmark indices finished the week down due to unsatisfactory quarterly results for July through September and worries about inflation that impacted the market mood. Although the Nifty index had a worse start, it recovered well from its intraday lows and remained positive for the duration of the session. With no hourly candle closing below its prior low, the index was able to reach 24,886. At 24,854, it closed 0.42% higher (+104 points), indicating a robust comeback propelled by buyers at lower levels. Nifty Bank experienced a strong rebound from its intraday lows after opening on a negative note, and the index held onto its bullish position the whole day. Interestingly, the index was able to reach the 52,199 level since no hourly candle closed below the prior lows. At 52,094, it closed the day up 1.57% (+805 points), indicating a robust recovery by investors from lower levels.

Market Outlook

"The outlook for the market will be guided by the major domestic and global economic data such as India Nikkei S&P Global Manufacturing PMI (Oct), India Nikkei Services PMI (Oct), India RBI MPC Meeting Minutes, US Initial Jobless Claims, US Manufacturing PMI (Oct), US Services PMI (Oct), US S&P Global Composite PMI (Oct), UK Composite PMI (Oct). The Indian stock market extended its loosing streak for the third consecutive week with nifty50 toppling to its weakest level since August before setline the week at 24854, down nearly 0.50% from previous week, while Sensex declined around 0.20% to end the week at 81224.75. the weakness in Indian indices was triggered by disappointing quarterly earnings by index heavyweights and underwhelming India's inflation numbers which again fuelled the expectation of delay in early rate cut by RBI," said Ms. Palka Arora Chopra, Director of Master Capital Services Ltd.

Nifty Prediction

"Nifty 50 ended its three-week losing streak by closing in the green, taking support near the 100-day EMA and finishing above the 24,800 level, driven largely by the banking and finance sectors. The key resistance now stands at 25,000, and a breakout above this could lead to a move toward 25,300. On the downside, support is at 24,500, and a breach below this may see the index drop to 24,200. Although Nifty has shown strength after taking support, the market awaits heavyweight results, which could dictate the next move. A sideways to bullish approach is advisable as traders watch for further cues from upcoming earnings," Palka Arora Chopra predicted.

Bank Nifty Prediction

"Bank Nifty had a weak start to the week but took support around its ascending trendline and 100-day EMA, leading to a sharp reversal from the 51,000 level. It closed strongly, breaking above the previous week's high at 52,000, signalling strong buying interest, supported by positive bank results. The next resistance is at 52,300, and a breakout above this level could push it towards 52,900. Support is at 51,500, and a breach here may lead to 51,000 levels. Traders can adopt a buy-on-dips strategy to capitalize on this trend," Palka Arora stated.

Stocks To Buy Today

On Monday, October 21, Sumeet Bagadia, executive director of Choice Broking, recommended buying two stocks after the Nifty index is currently facing resistance around the 24,900-25,000 range, where there has been a significant amount of call-writing activity.

MCX

Buy MCX in Cash @ Rs 6561.15, stop-loss @ Rs 6332, target @ Rs 7020

MCX is currently trading at 6561.15, showing a strong upward trajectory. The stock has exhibited a consistent pattern of higher highs and higher lows, underscoring sustained bullish momentum. Notably, it recently reached a fresh all-time high of 6605.9. The stock is trading above its 20-Day EMA, 50-Day EMA, and 200-Day EMA, indicating strong support from short-term and long-term trends. MCX holds the potential for further appreciation. Having broken through a key resistance level, if the trend continues and higher levels are breached, the stock could potentially reach a target of 7020.

On the downside, immediate support is located at 6450. The Relative Strength Index (RSI) is currently at 75.80 and trending upward, reflecting growing buying momentum. To manage risk effectively, a stop-loss at 6332 is suggested to guard against any unexpected market reversals.

In conclusion, based on the technical analysis and current market conditions, MCX presents a promising buying opportunity for those aiming for a 7020 target, provided that appropriate risk management strategies are in place.

Abbott India

Buy ABBOTINDIA in Cash @ Rs 29209.55, stop-loss @ Rs 28250, target @ Rs 31250

ABBOTINDIA is currently trading at 29209.55 and is forming a symmetrical triangle pattern, often viewed as a consolidation phase before a potential breakout. Over the past few years, the stock has consistently made higher highs and higher lows. At present, the price is fluctuating within the triangle, moving between its support and resistance levels, and is on the verge of a breakout. Should this occur, a short-term target of 31250 is anticipated.

On the downside, immediate support is at 28950, which may present buying opportunities on dips. The Relative Strength Index (RSI) stands at 55.57, indicating neutral momentum but slightly leaning toward the bullish side. For effective risk management, a stop-loss at 28250 is advised to safeguard against potential market reversals.

In summary, based on technical analysis and current market conditions, ABBOTINDIA appears to offer a promising buying opportunity with a target of 31250, provided proper risk management strategies are employed.

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.