Trade Call: 2 Stock Picks By Sumeet Bagadia On Tuesday, 13th Feb

The benchmark indices, the Nifty and the Sensex, had notable drops on Monday. The Nifty fell 166 points to 21,616 while the Sensex fell 523 points to 71,072. Hero MotoCorp, ONGC, BPCL, Coal India, and IndusInd Bank were among the top Nifty losses, whilst Dr. Reddy's Laboratories, Apollo Hospitals, Wipro, Divis Labs, and HCL Technologies were among the winners. With the exception of IT and pharmaceuticals, all sectors ended in red. In the broader market, the BSE smallcap index dropped 3 per cent, while the midcap index dropped 2.6 per cent.

Market Outlook

Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy said, "Sentiments in the markets have turned bearish as Nifty broke the crucial level of 21,700. On a 30-minute timeframe, Nifty has been forming lower highs and lower lows for the past 10 days. Now the immediate support for Nifty lies at 21,500, a slide below which can take Nifty to 21,250."

"Nifty Bank for the first time in over three months closed below its 200-DMA landing the banking index in a bearish territory. On the daily timeframe, Nifty Bank formed a bearish engulfing candle breaking the crucial level of 45,000. 44,500 is the crucial support to look out for in Nifty Bank. On the upside, the zone of 45000 - 45250 is likely to offer huge resistance. The bearishness in the mid-cap and small-cap space is even more severe. However, these corrections also offer the opportunity to accumulate good-quality stocks," he added.

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "The Bank Nifty index experienced continued dominance by bears, with clear rejection observed at higher levels. Closing below the near-term support zone of 45000 signaled bearish sentiment. The index faces immediate resistance at 45100, and a breakthrough could trigger short-covering moves towards 45500 levels. Conversely, the immediate support is at 44800, and breaching this level may intensify selling pressure towards the 44000 mark."

Nifty Outlook

Rupak De, Senior Technical Analyst, LKP Securities said, "Nifty declined further after a consolidation breakdown on the hourly chart, indicating an increase in pessimism. The daily chart shows the index forming a lower top, signalling diminishing bullish sentiment. The momentum indicator aligns with this bearish outlook, displaying a crossover. The Nifty might remain sell on rise as long as it remains below 21850. On the downside, support is situated at 21500."

Stocks To Buy Today

On Tuesday, February 13, Sumeet Bagadia, Executive Director of Choice Broking, advised purchasing Voltas and HCL Tech shares. Here's why.

Voltas

Buy VOLTAS in cash @ Rs 1075.35, stop-loss: Rs 1038, target: Rs 1150

VOLTAS is currently trading at 1075.35 levels, having recently rebounded from a support level at 1038 levels which is also close to its 20 Day EMA levels. This bounce has given a strong breakout above the resistance level of 1068 levels indicating strength.

The Relative Strength Index (RSI) at 59.95 suggests that there is strength in the stock as it has bounced from the support levels, leaving room for further price appreciation. However, there is a smaller resistance level at 1100 that the stock needs to overcome. If it successfully surpasses this resistance, it could potentially target higher levels, specifically 1150 and beyond.

According to the aforementioned technical analysis, we advise buying VOLTAS at CMP of 1075.35 for the target of 1150 levels, if the stock closes below 1038, our analysis will be invalid.

HCL Tech

Buy HCLTECH in cash @ Rs 1659.40, stop-loss: Rs 1620, target: Rs 1720

In the intricate tapestry of technical analysis, HCLTECH emerges as a prime candidate for astute investors. At the current juncture, the cash price of HCLTECH stands at a tantalizing 1659.40, beckoning investors to seize the opportunity. Notably, the stock is hovering near its illustrious all-time high of 1685, signalling a potential breakthrough to new heights.

Bolstering this optimistic outlook is the Relative Strength Index (RSI), standing resolutely at 69, indicative of robust bullish momentum. Moreover, HCLTECH exhibits commendable strength by trading comfortably above critical exponential moving averages (EMAs) including the 20-day, 50-day, 100-day, and 200-day EMAs. This confluence of factors underscores the stock's resilience and augurs well for sustained upward momentum.

A pivotal aspect of HCLTECH's recent trajectory is its consolidation within the range of 1520-1590, a period characterized by resilience and accumulation. This consolidation phase has culminated in a sustainable breakout, signalling the stock's readiness for a renewed upward surge.

In light of these compelling technical indicators, a strategic recommendation is extended to buy HCLTECH in cash with a target price set ambitiously at 1720. To prudently manage risk, investors are advised to set a stop-loss at 1620, safeguarding against potential downturns.

In conclusion, HCLTECH's poised stance near its all-time high, reinforced by robust RSI readings and steadfast trading above key EMAs, presents an enticing opportunity for investors. As the stock charts its course towards new zeniths, investors equipped with a discerning eye for technical nuances stand poised to reap the rewards in the dynamic landscape of the equity market.

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.