Trade Call: 2 Intraday Technical Stock Picks By Sumeet Bagadia On Friday, 19th Jan

Thursday marked the third straight day of disappointment for Indian benchmark indices alongside lacklustre global cues amid a rebound in European and Asian indices. The Nifty dropped 109.70 points, or 0.51 per cent to close at 21,462.30, while the Sensex plummeted 313.90 points, or 0.44 per cent to settle at 71,186.86.

Top gainers on the Nifty were Sun Pharma, Cipla, Tech Mahindra, Tata Motors, and M&M, while the top losers were LTIMindtree, HDFC Bank, NTPC, Titan Company, and Power Grid. In terms of sectoral losses, the consumer durable, metal, and bank sectors fared the worst, with significant gains recorded in the pharmaceutical, PSU Bank, and real estate sectors. On the broader market front, BSE Mid Cap and Small Cap ended on a flat note.

Nifty Outlook

Rupak De, Senior Technical Analyst, LKP Securities said, the Nifty slipped below the rising trendline on the daily chart, suggesting a bearish trend reversal. Besides, the index has fallen below the critical near-term moving average. Now, the trend is likely to remain weak as long as the index stays below 21,550. A decisive move above 21,550 might weaken the bears; until then, bears might control the market. On the lower end, support is placed at 21,400. A drift below 21,400 might take Nifty for a revisit to 21,250-21,200.

Bank Nifty Outlook

The bears maintained control over the Bank Nifty index, leading to a 0.76% decline. The index's immediate support is positioned at the 45500-45400 zone, and a successful defense of this level could trigger a rebound towards 46500. Despite potential short-term fluctuations, the broader trend continues to favor a "sell on rise" approach, suggesting caution and a likelihood of further declines if the mentioned resistance level is not convincingly breached, said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Stocks To Buy Today

On Friday, January 19, 2024, Sumeet Bagadia, executive director of Choice Broking, suggested buying two stocks. The following paragraphs discuss the entry price, stop loss, and target price for Welspun Corp. and Indian Bank.

Welspun Corp

Buy WELCORP in cash @ Rs 601, stop-loss: Rs 584, target: Rs 629

The daily chart analysis of WELCORP suggests a positive outlook for the upcoming days, indicating a sustained upward trend observed over the past two weeks. The stock price has been consolidating within a larger pattern over the last couple of months and has attempted to break through the range of 560-580 levels.

A successful move has been identified with a significant breakout, potentially leading to a substantial positive impact on the stock price in the near future. Moreover, WELCORP is currently trading above key Exponential Moving Average (EMA) levels, including the 20-day, 50-day, and 100-day EMAs, confirming the bullish trend. The increased trading volume and the stock's position above the Volume Weighted Average Price (VWAP) at 589 further supports the bullish scenario.

For those considering fresh investments, a disciplined approach involves waiting for potential dips and considering entry points near the 594 levels. Setting a strict stop-loss at 584 levels can serve as a risk management strategy, providing protection against adverse market movements.

To navigate the stock's future trajectory, investors should remain vigilant regarding Relative Strength Index (RSI) dynamics and potential sideways movements. This awareness will enable investors to optimize their investment positions based on prevailing market conditions.

Indian Bank

Buy INDIANB in cash @ Rs 443.55, stop-loss @ Rs 430, target @ Rs 463

INDIANB is currently trading at 443.55 levels, having rebounded from a robust support zone at 430 levels, in proximity to its 20-day Exponential Moving Average (EMA). The stock showcases a positive technical picture by trading above key moving averages-namely the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, indicating overall strength.

The momentum indicator, Relative Strength Index (RSI), is on an upward trajectory, presently trading at 60 levels, affirming the stock's underlying strength. While there exists a minor resistance around 450 levels, a decisive breach above this level could propel INDIANB higher, targeting levels around 463 and beyond.

Investors and traders may find the recent bounce from support an encouraging sign, suggesting a potential continuation of the uptrend. However, cautious monitoring of the resistance levels and RSI dynamics is advisable to navigate potential inflection points. This analysis presents INDIANB as a stock with positive momentum, but prudent risk management strategies should be in place for a comprehensive trading approach.

Based on the above analysis we recommend buying INDIANB at CMP of 443.55 with a stop loss of 430 for the target of 463.

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.