Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Wednesday, 23rd Aug

On Tuesday, the Sensex closed at 65,220.03, up 3.94 points or 0.01%, while the Nifty 50 closed at 19,396.45, up 2.85 points or 0.01%. Adani Enterprises, HDFC Life, ITC, NTPC, and Hero MotoCorp were among the top gainers on the Nifty, while BPCL, Cipla, Bajaj Finserv, Eicher Motors, and TCS were within the top losers. Except for Information Technology, Pharma, and PSU Bank, all other indices ended higher with Capital Goods and Power gaining 1% apiece, and Metal and FMCG rising 0.5 percent each. Broader indices BSE Midcap and Smallcap gained a per cent each.

Nifty Prediction

Commenting on the outlook of Nifty, Rupak De, Senior Technical analyst at LKP Securities said, "Throughout the day, the Nifty index exhibited a distinct lack of movement, with traders uncertain about the market's upcoming trajectory. Notably, there is a noticeable resistance observed at the 21-day Exponential Moving Average (EMA) on the chart's upper spectrum. The prevailing sentiment appears feeble, given that the index is positioned beneath the crucial moving average point. As things stand, the market continues to favor a strategy of selling into rallies, maintaining this stance as long as it remains below the 19500 mark."

Bank Nifty Prediction

Commenting on the outlook of Bank Nifty, Rupak De said, "Bank Nifty displayed continued weakness after an initially positive opening. The daily Relative Strength Index (RSI) has entered into a bearish crossover pattern. On the downside, there's a possibility of a decline towards the 43800 mark; breaching this level could lead to a further drop towards 43500. Conversely, the upper end is met with resistance around 44200."

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy today i.e. on Wednesday, 23rd August.

Tata Consumer Products

Buy TATACONSUM in cash @ Rs 848.80, Stop-loss @ Rs 830, Target: Rs 885

TATACONSUM is currently trading near 848.80 levels. The Strength is shown by the RSI indicator's current trading range of 51 levels. The stock has moved above 20 Day EMA and has also closed above the same levels and is currently trading above all of the key moving averages. The Bollinger band continues to expand on the daily chart after a squeeze, with the price trading above the band's centre line, indicating the stock's strength. A small resistance is placed near 863 levels; if the stock surpasses this level, it may move towards 885 levels and higher.

With a medium-term target price of 885, we advise purchasing TATACONSUM at the CMP of 848.80. If the price closes below 830, our analysis will be regarded as invalid.

Ashok Leyland

Buy ASHOKLEY in cash @ Rs 187, Stop-loss @ Rs 183.5, Target @ Rs 196

The stock has corrected from the new all-time high level of 191 but has shown a bounce from the initial support itself which is around 184-185 levels. ASHOKLEY has formed strong support at 184 levels. Currently, the stock is trading around 187 levels.

A smaller resistance is visible on the charts near 191 levels which is also an all-time high level. Once the stock overcomes the previously mentioned resistance, it will be able to move closer to the target price of 196 and higher. The stock is trading above all important moving averages. RSI is also trading comfortably at 66 levels indicating strength.

Based on the above analysis we recommend buying ASHOKLEY at a CMP of 187 with a short-term target price of 196. Our analysis will be deemed void if the price closes below 183.5 levels.

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.