Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Today, 18th Aug

Benchmark indices ended lower on Thursday triggered by induced volatility in the Indian market covering higher food prices and soaring inflation. The Nifty ended 99.70 points down or 0.51 per cent at 19,365.30 at closing, and the Sensex was down 388.40 points or 0.59 per cent at 65,151.02.

Top Nifty losers included ITC, LTIMindtree, Divis Lab, Power Grid, and Reliance Industries, while winners included Adani Ports, Titan Company, Adani Enterprises, Bajaj Auto, and SBI. Sectoral indices like capital goods, Oil & Gas, power, FMCG and Information Technology ended in red while only PSU Bank was green at the end of the trading session. Whereas, broader indices BSE mid-cap ended 0.06% higher and the BSE small-cap ended 0.19% higher on Thursday.

Nifty Prediction

Commenting on the outlook of Nifty, Rupak De, Senior Technical analyst at LKP Securities said "The Nifty index displayed volatility throughout the session due to the expiration of weekly options. The prevailing sentiment stays negative as the index continues to stay below the crucial moving average. Looking at the upper range, the sell-on-rise approach might be more effective as long as the level of 19525 remains unbroken. On the downside, levels around 19250 serve as immediate support in case of any decline."

Bank Nifty Prediction

Commenting on the outlook of Bank Nifty, Rupak De said "The Bank Nifty index displayed resilience by maintaining the support level of 43600, which aligns with its 100-day moving average (100 DMA). This support zone becomes crucial for adopting a buy-on-dip strategy. A key resistance level at 44200 awaits, and surpassing it could trigger short-covering and a potential move towards the 45000 level. The momentum indicator, RSI, entering the oversold region suggests a potential rebound. This possibility becomes more significant if the mentioned support level holds."

Market Outlook

Om Mehra, research analyst at Choice Broking, said, "Bears retained their dominance on Dalal Street as benchmark Indices failed to reclaim its previous day's closing level. Sensex settled at 65151.02 losing 0.59 percent and Nifty ended at 19365.25 slipping 0.51 percent on Thursday. While Bank nifty closed the session at 43891.35 with a marginal loss. In the Nifty, 15 stocks advanced while 35 declined. On the sectoral front, only Nifty PSU Bank ended in the green territory while maximum sectors held under the grip of bears."

"Throughout the day the index traded with swings but at the end of the day, the index was dragged to the negative side. Recently India VIX has remained over 12 levels this week indicating volatility going to stay in the coming days. Indicators such as MACD, and RSI still remain on the weak side. 50 DMA would be immediate support in the coming days. On the other hand, Bank Nifty remains more fragile compared to Nifty as mostly private banking stocks witness some profit booking from the higher side. However immediate support remains at 43300 levels while resistance is placed at 44300. Short-term investors may opt for stock-specific action. In the longer time frame, Index is still trading with lower high-and lower lows pattern. Traders may expect range bound movement until 19234-19550 are taken out," said Om Mehra.

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy on Friday, 18th August.

Bank of Baroda

For the past few weeks, the stock has been trading in a narrow range. Seems the stock has taken a pause after the decent rally. Considerably we can say that there can be an accumulation phase as there is a lesser movement in a short time frame. According to Fibonacci retrenchment, the price action is still resilient and sustaining above 0.38 percent. The RSI currently remains at 45 levels. Additionally, the price is sustaining the middle Bollinger Band as well.

One can initiate a long position at cmp 189.9 for the target price of 198. SL can be kept as 185.

United Spirits

Buy MCDOWELL_N in cash @ Rs 1002.80, Stop-loss @ Rs 980, Target: Rs 1050

MCDOWELL_N has bounced back from the support of 980 levels which was prior a resistance. Currently, the stock is trading around 1002.80 levels. The stock is trading above all important moving averages indicating strength. The RSI indicator is also trading near 57 levels which will help the stock to move upwards. A small resistance is placed at 1024 levels. Once stock closes above the mentioned resistance level it can move towards the new all-time high level of 1050 and above.

Based on the above analysis MCDOWELL_N can be purchased at a CMP of 1002.80 with a SL of 980 levels for the target of 1050 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.