Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Today, 16th Aug

On Monday, the Sensex closed at 65,401.92, up 79.27 points or 0.12%, while the Nifty 50 settled at 19,434.55, up 6.25 points or 0.03%. The volatility index of India closed at 4.10%. 108 points were lost by Bank Nifty while the BSE Midcap and Smallcap indices both experienced widespread sell-off on Monday, falling by 132.68 points and 177.40 points, respectively. The BSE Metal index was the top broader market loser, losing roughly 397 points. BSE Consumer Durables and Bankex were next, falling by 215.95 points and 145.93 points, respectively. The BSE IT index, on the other hand, gained 199.29 points.

Nifty Prediction

Commenting on the outlook of Nifty, Rupak De, Senior Technical analyst at LKP Securities said, "The Nifty index displayed volatility throughout the trading session, before ending the day with minimal change. On the daily chart, it's evident that the index received support at the 50EMA, leading to a notable intraday rebound. However, the RSI on the daily chart demonstrated a bearish crossover, with its value dropping below 50. This could be indicative of a weakening trend. If the index falls below the 19250 mark, it might incite a corrective movement towards the 19100-19150 range in the near future. Conversely, resistance can be identified at the 19550 level on the higher side."

Bank Nifty Prediction

Rupak De said, "The recent Bank Nifty closing formed a doji candlestick pattern on the daily chart. Support at 43800 signifies its resilience, while substantial put writing at 44000 suggests confidence in its stability. However, call writing at 44500 could hinder upward movement. A "sell on rise" strategy might be prudent until a clear breakout above 44500 resistance is observed, as per the analysis."

Market Outlook

"Domestic equities had weak handover from its global peers as high US inflation and mounting trouble in China's real estate market dented the sentiments. Even on the domestic front, IIP data came at 3 months low. After a tepid start, Nifty made a gradual recovery during the day as buying emerged at lower levels in index heavyweights. The index closed with minuscule gains of 6 points at 19435 levels. Except for IT, FMCG, and Media, all sectors ended in red. Caution was seen in the market today on account of fragile global factors and ahead of India's CPI data that would be released later today (Monday). We believe inflation is likely to pick up in Jul-Aug'23 - entirely led by vegetables," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

"We expect the headline inflation at ~7.5% YoY in Jul'23, which is well above the RBI's tolerance band. Even WPI inflation came in a little higher than expectation. Persistent selling by FIIs since July end too is keeping the Indian equities on edge. Thus the market is witnessing consolidation at higher levels in the absence of any positive trigger. We expect this trend to continue in the near term as a series of macro data around the world and FOMC meeting minutes will be released during the week which could keep markets subdued. Indian equities will remain closed on Tuesday on the occasion of Independence Day and might stay lackluster on Wednesday on account of the Parsi New Year," said Siddhartha Khemka.

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy on Wednesday, 16th August.

Larsen and Toubro

Buy LT in cash @ Rs 2659, Stop-loss: Rs 2610, Target: Rs 2714

Stock is currently trading at 2659 levels. On a closing basis, the stock has respected the support levels and hasn't closed below its strong support levels of 2620. LT can now progress even further towards all-time high levels and beyond. The strength for the stock to climb upwards is demonstrated by the RSI indicator, which is comfortably trading at 65 levels. The stock is also moving above all important moving averages. Once stock crosses the previous all-time high level of 2690 it can move towards the level of 2700 and above.

Based on the above technical analysis we recommend buying LT at CMP of 2659 for a Short term outlook with a stop loss of 2610 for targets of 2714.

Tata Communications

TATACOMM has revealed a gradual upward movement in the larger time frame after decent consolidation. ADX remains at a level of 27 indicating that the stock currently remains moderately bullish. RSI is positively skewed, indicating favorable price action among investors potentially supporting the continuation of the upward trend. Furthermore, the increasing delivery volume indicates higher participation and interest from market participants.

One can initiate a long position at CMP Rs 1705.6 for the target price of Rs 1770. Stop-loss can be kept at Rs 1670.

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.