Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Today, 17th Aug

Despite impoverished global cues, benchmark indices closed on an uptrend tone on Wednesday. The Nifty was up 30.50 points or 0.16 percent at 19,465, and the Sensex was up 137.50 points or 0.21 percent at 65,539.42 as of the closing. Tata Steel, Adani Ports, Hindalco Industries, HDFC Life, and Bharti Airtel were among the major losers on the Nifty, while UltraTech Cement, Apollo Hospitals, NTPC, Infosys, and NTPC all saw significant gains. All sectoral indices-apart from bank and metal-ended in the green, with gains of 0.5-1 percent in the following sectors: auto, power, real estate, IT, pharmaceuticals, and capital goods. BSE small cap index gained 0.5%, while midcap index climbed by 0.2%.

Nifty Prediction

"Nifty spent another week in consolidation amid high intraday volatility absorbing events like RBI policy and US inflation numbers. While it was third consecutive negative closing, but after a sharp move of last 3 months, Nifty has retraced just over 2.5% from life highs. On the other hand, broader markets remained firm and both midcap and small cap indices gained for the seventh consecutive weeks. Going ahead, we believe Nifty may remain lackluster in the range of 19300-19600 during the week for Nifty and only a move beyond the range may provide directional bias," said the research analysts of ICICI Securities.

Bank Nifty Prediction

"Bank Nifty continued with underperformance last week as well and weakened by ~1.5% against just 0.5% decline seen in Nifty. Unabated selling pressure among private sector heavyweights like HDFC Bank has led bank nifty to breach last week lows. Going ahead, we believe Bank Nifty may find support near 43600 levels where it has been finding support since May series. The options concentration in Bank Nifty is also quite tilted towards Call writing and ATM 44500 Call strike holds the highest OI base which is almost double than any of the Put bases. Throughout last week, the Bank Nifty failed to sustain higher levels and witnessed selling pressure near 45000 levels," stated ICICI Sec.

"Hence, we expect fresh up move is likely only if Bank Nifty is able to sustain beyond 45200 levels. Also, the open interest in Banking index has remained subdued and is just over 20 lakh shares. The recent underperformance can be attributed to cash based selling pressure post quarterly results from heavyweights. Considering recent pause in FIIs flows, reversal in banking index seems unlikely. However, we expect levels near 43600 to extend support in coming sessions," said the research analysts of ICICI Securities.

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy on Thursday, 17th August.

L&T Technology Services

LTTS is holding above its prior resistance zone in the daily charts. The stock price is holding above the 40-day EMA, indicating potential support. In the larger time frame, the stock continues to form higher highs and higher lows, indicating an intact uptrend. The positive crossover on the MACD momentum indicator further confirms the bullish price action.

One can initiate a long position at cmp 1916.9 for the target price of 1980. SL can be kept as 1885.

Mahindra And Mahindra

Buy M&M in cash @ Rs 1570.60, SL (stop-loss): Rs 1530, target price: Rs 1650

M&M is currently trading at 1570.60 levels. The stock has formed a hammer pattern on daily chart which indicates strong Bullish trend in stock. The Strength is shown by the RSI indicator's current trading range of 62 levels. The stock is currently trading above all of the key moving averages. The Bollinger band continues to expand on the daily chart, with the price trading above the band's centre line, indicating the stock's strength. A small resistance is placed near 1595 levels which is also an all-time high level for the stock; if the stock surpasses this level, it may move towards 1650 levels and higher.

With a medium-term target price of 1650, we advise purchasing M&M at the CMP of 1570.60. If the price closes below 1530, our analysis will be regarded as being invalid.

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.