Sumeet Bagadia Stock Picks: 2 Shares To Buy/Sell Today, 19th Oct

In light of the growing conflict between Israel and Hamas in the Middle East on October 18, the benchmark stock market indices ended the day on a downbeat tone. Nifty dropped 140.40 points or 0.71 per cent to 19,671.10 at closure, and the Sensex dropped 551.07 points or 0.83 per cent to close at 65,877.02.

Bank Nifty fell 520.80 points, or 1.17%, before closing at 43,888.70. Across sectoral indices, there was widespread sell-off pressure in the banking, consumer durables, oil & gas, financials, and IT sectors. Bajaj Finance, Bajaj Finserv, NTPC, HDFC Bank, and Reliance Industries were among the biggest losers; on the other hand, Cipla, Dr. Reddy's Laboratories, Tata Motors, Sun Pharma, and SBI Life Insurance were the top 5 gainers.

Market Outlook

Aditya Gaggar Director of Progressive Shares said, "After facing resistance near 19,850, the markets witnessed a round of correction and ended the day at 19,671.10 declined by 140.40 points. Only the Pharma sector ended the day with considerable gains, while all the other sectors ended in red with Banking indices being the major laggard followed by Energy.

Broader markets also witnessed pressure as Midcap and Smallcap ended the session lower with a loss of 0.90% & 0.34% respectively. Nifty50 has not only made a strong bearish candle on the daily chart but also has given a breakdown from the rising trendline which indicates a short-term weakness in the market. Today's breakdown can be considered as a whipsaw if the Index gives a closing above 19,800 in days to come. The immediate support for the Index stands at 19,580 while the resistance is placed at 19,780."

Nifty Prediction Today

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "Nifty has formed an evening star candle on the daily chart, which is considered to be a bearish reversal pattern. The Futures Open Interest (OI) in the Nifty indicated buildup of fresh short position in Index futures.

Call writers were seen offloading their positions at 19,800 strike, leading to a strong down in Nifty today. A double top structure around the 19,850 levels is visible on the daily chart. A breakdown below the previous swing low of 19,635 can intensify the selling pressure, which can take the Index until 19,480 levels."

Bank Nifty Outlook Today

Ashwin Ramani said, "Bears were in total control since the start in Bank Nifty as the Index tanked 521 points to close at 43,889. A head and shoulder pattern is visible on the daily chart. A break below 43,850 can lead to initiation of fresh shorts which can take the Index until 43,400 levels. Resumption of uptrend is likely only upon successful close above 44,400 level."

Stocks To Buy Today

Sumeet Bagadia, Executive Director at Choice Broking has picked up 2 stocks to trade on 19th October, Thursday.

Sun Pharma

Buy SUNPHARMA in cash @ Rs 1153.40, stop-loss: Rs 1130, target: Rs 1190

Sun Pharma, is presently trading at 1153.40 levels, having recently broken out from its previous range of 1130-1145. This breakout signifies a potential shift in the stock's price dynamics, making it an intriguing investment prospect.

In addition, the Relative Strength Index (RSI) is trending upward and appears to be on the verge of a positive crossover, indicating a potential increase in buying pressure. Moreover, Sun Pharma's price is currently positioned above its 20-50-200 Day Exponential Moving Averages (EMA), suggesting underlying strength in the stock.

Taking all these factors into consideration, it is our professional opinion that Sun Pharma presents a favourable buying opportunity at the current price of 1153.40, with a target price of 1190. It is important to note that our views would be invalidated if the stock were to fall below the 1130 level.

Firstsource Solutions

Buy FSL in cash @ Rs 166.50, stop-loss: Rs 162, target: @ Rs 174

The stock has corrected from the level of 174 but has shown a bounce from the strong support itself which is around 160 levels which is close to its 50 Day EMA levels. Currently, the stock is trading around 166.5 levels. A smaller resistance is visible on the charts near 169 levels. Once the stock overcomes the previously mentioned resistance, it will be able to move closer to the target price of 174 and higher. The stock is trading above all important moving averages. RSI is also trading comfortably at 54 levels indicating strength.

Based on the above analysis we recommend buying FSL at a CMP of 166.5 with a medium-term target price of 174. Our analysis will be deemed void if the price closes below 162 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.