Trade Call: 2 Stock Picks By Sumeet Bagadia On Friday, 9th Feb

The benchmark indices closed on selling signals on Thursday as the RBI maintained the status quo for the sixth time in a row. The Nifty dropped 212.50 points, or 0.97 per cent to close at 21,718 while the Sensex plummeted 723.57 points, or 1.00 per cent to settle at 71,428.43. State Bank of India, BPCL, Power Grid Corporation, Coal India, and Hindalco Ind were the top gainers on the Nifty, while the biggest losers were Britannia Industries, Eicher Motors, Kotak Mahindra Bank, Axis Bank, and Nestle India. On the sectoral front, private bank were the worst performers followed by FMCG sector whereas PSU Bank was the top gainer followed by media sector.

Nifty Outlook

Rupak De, Senior Technical Analyst, LKP Securities said, "Nifty experienced a sharp decline as follow-up selling emerged following profit booking in the previous trading session. However, on the lower end, it found initial support at the 20DMA. The trend could weaken if it drops below 21,690, at which point the index may decline towards 21,500. On the contrary, if it remains above 21,700, we might observe a recovery in the near term."

Bank Nifty Outlook

"The Bank Nifty index experienced a robust comeback by bears, encountering substantial selling pressure following the RBI policy announcement. The critical support zone of 45500 has been breached and is now expected to act as a resistance level. Pullbacks towards this mentioned resistance are considered opportune levels for selling. The subsequent support is positioned at 44400, and a break below this level is likely to intensify selling pressure, potentially leading the index towards the 44000 mark," stated Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Stocks To Buy Today

On Friday, February 9, Choice Broking's Executive Director Sumeet Bagadia recommended buying shares of Reliance Industries and Max Healthcare Institute.

Max Healthcare Institute

Buy MAXHEALTH in cash @ Rs 862.30, stop-loss: Rs 843, target: Rs 907

In the dynamic landscape of equity markets, MAXHEALTH has firmly established its position at an impressive 862.30 levels, showcasing a robust technical standing above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, and 200-day indicators. The recent phase of consolidation observed within the range of 700-800 levels not only suggests a potential upward movement but also gains support from a bullish candlestick pattern discernible on the daily charts.

A significant juncture in MAXHEALTH's current trajectory is the emergence of a modest resistance zone at 880 levels. This marks a crucial point for the stock, and a successful breach of this resistance could pave the way for MAXHEALTH to ascend towards the targeted pinnacle of 907 levels and potentially beyond. As discerning investors navigate these market waters, diligent monitoring of the stock's performance around this resistance becomes paramount, as it holds the key to shaping the sustainability of the positive momentum in the short term.

Delving into this insightful analysis, a judicious investment strategy may involve contemplating the acquisition of MAXHEALTH at the prevailing market price (CMP) of 862.30. To adeptly manage risk, a strategic stop-loss set at 843 provides a protective measure. Simultaneously, in harmony with the potential upward movement indicated by the technical analysis, establishing a target of 907 becomes an integral aspect of this calculated approach. This strategic blueprint is meticulously crafted to harness the observed positive market conditions, offering investors a well-defined plan for entry, risk management, and target achievement within the context of MAXHEALTH's existing trading scenario.

Reliance Industries

Buy RELIANCE in cash @ Rs 2900.25, stop-loss @ Rs 2835, target @ Rs 3025

Reliance Industries Limited (RELIANCE) is currently positioned at 2900.25 levels, reflecting a solid foundation established at the support level of 2835. The consolidation and base formation at this support level signify stability in the stock's performance. Additionally, RELIANCE exhibits resilience by trading above crucial moving averages, affirming its inherent strength.

While facing a minor resistance at 2940 levels, a breakout beyond this threshold could pave the way for further upward momentum. Sustaining levels above 2940 may propel the stock towards the next target at 3025 levels, presenting a promising outlook for investors.

Reinforcing the positive sentiment, the Relative Strength Index (RSI) comfortably rests at 65.77 levels, indicating a favourable balance between buying and selling pressures. The technical parameters collectively suggest a constructive environment for RELIANCE, encouraging potential bullish movements in the near term. Investors may find opportunities in this upward trajectory, particularly on confirmation of a sustained breakthrough above the resistance level.

Based on the above technical analysis we recommend buying RELIANCE at CMP of 2900.25 for a medium term outlook with a stop loss of 2835 for targets of 3025

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.