Trade Call: 2 Stock Picks By Sumeet Bagadia On Thursday, 8th Feb

Indian benchmark indices concluded on a flat note on February 7, ahead of the result of the RBI policy meeting on Thursday. The Nifty surged 1.10 points or 0.01 per cent to 21,930.50 level at the closing, while the Sensex dropped 34.09 points, or 0.05 per cent to settle at 72,152.00.

On the Nifty, the major gainers were State Bank of India, Grasim Industries, JSW Steel, HDFC Life, and Axis Bank; the top losers were Tech Mahindra, Power Grid Corporation, Infosys, Adani Ports, and TCS. With the exception of the IT and private bank sectors, all sectors saw an upward trend. In terms of the broader market, the BSE Midcap index climbed by 1.3 per cent, while the Smallcap index gained 0.4 per cent.

Bulls Stage Intraday Recovery

According to Mr. Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities Nifty opened with a gap up and came under a massive selling pressure in the first half before recovering steadily in the second half to close at 21,931, up 1 point.

The Long Short ratio rose sharply from 36.21% on 5th February to 37.31% on 6th February as Foreign Portfolio Investors (FPIs) built exposure in longs at a faster rate than shorts in Index futures.

Strong call writing (bears entry) was observed at the maximum call open interest strike of 22,000 in Nifty leading to an Intraday downfall. The call writers have further consolidated their position at 22,000 Strike today. The 21,900 Strike saw a good battle between the writers and hence the option activity at 21,900 Strike will provide cues about Nifty's direction ahead of the weekly expiry tomorrow.

Bank Nifty too recovered marginally in the second half after a sharp fall in the first half to close at 45,819, up 128 points. Strong call writing was observed at 46,000 Strike in Bank Nifty. The call writers further strengthened their position at 46,000 Strike in Bank Nifty. Bank Nifty is unlikely to move higher unless call writers exit from the 46,000 Strike.

Nifty Eyes For RBI Meet Outcome

Om Mehra, Technical Analyst, SAMCO Securities stated after opening higher with the support of Global cues but later on, Nifty was dragged down and ended almost flat. Nifty ended at 21,930.50 ending just 1 point higher.

Currently Nifty is going through a consolidation phase. Once it sustains 22,040 levels we can expect an upside rally.Indicators such as RSI and MACD indicate neutral to bullish views in the daily time frame. The volume profile indicates that the Index may find support around 21,750 levels.

Bank nifty closed the session at 45,818.50 and ended higher by 0.28%. The index would attempt for 46,600 once it sustains above 46,000 levels. As the Reserve Bank of India (RBI)'s Monetary Policy Committee (MPC) meeting's outcome will be out on Thursday, February 8, during market hours, the market may see momentum shifting to key Banking stocks in the wake of the status quo being maintained on the interest rate front.

Small and Mid-cap indices ended on a mixed note as neither weakness nor optimism currently prevailed in this space.

The market undertone however is bullish, and the major trend of the market is on the positive side. Hence any short-term corrections will remain a buying opportunity.

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking, suggested purchasing shares of TVS Motor Company and SBI on Thursday, February 8.

SBI

Buy SBIN in cash @ Rs 677.5, stop-loss: Rs 670, target: Rs 697

SBIN is currently trading at Rs 677.5. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of Rs 660 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching Rs 697 levels. On the downside, substantial support is evident near Rs 666.

Furthermore, SBIN is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 69, signalling an upward trajectory and confirming an increase in buying momentum.

Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively support the notion that SBIN may have the potential to achieve a target price of Rs 697 in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 670 to protect the investment in case of an unexpected market reversal.

In summary, considering the technical analysis and prevailing market conditions, SBIN appears to present a promising buying opportunity for those targeting a Rs 697 price objective, contingent upon the implementation of prudent risk management measures.

TVS Motor Company

Buy TVSMOTOR in cash @ Rs 2063.95, stop-loss: Rs 2010, target: Rs 2150

TVSMOTOR is presently trading at 2063.95 levels, Bouncing from its initial support of 2011 levels which is also close to its 20 Day EMA levels. On daily chart the stock has formed strong bullish candle indicated strength in the stock.

Moreover, TVSMOTOR'S price is currently positioned above its 20-50-200 Day Exponential Moving Averages (EMA), suggesting underlying strength in the stock. RSI indicator is currently trading around 59.74 levels indicating strength.

Taking all these factors into consideration, it is our professional opinion that TVSMOTOR presents a favourable buying opportunity at the current price of 2063.95, with a target price of 2150. It is important to note that our views would be invalidated if the stock were to fall below the 2010 level.

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.