Trade Call: 2 Stock Picks By Sumeet Bagadia On Valentine's Day, 14th Feb

Gains in the banking industry sent Indian benchmark indices higher upon the close to trading on February 13. The Nifty gained 127.30 points, or 0.59 per cent to close at 21,743.30, while the Sensex surged 482.70 points, or 0.68 per cent to settle at 71,555.19.

On the Nifty, the primary losers were BPCL, Divis Laboratories, Hindalco Industries, Grasim Industries, and UltraTech Cement; the top winners were Coal India, UPL, Axis Bank, HDFC Life Insurance, and ICICI Bank. With the exception of the media and metal industries, every sector had gains at the end of the market. The BSE midcap index climbed by 0.6 per cent, while the smallcap index saw a 0.18 per cent jump.

RIL Spurs Market Recovery

According to Mr.Om Mehra, Technical Analyst, SAMCO Securities the Nifty exhibited a resilient recovery post a substantial sell-off in the preceding session, concluding at 21,743.25 with a notable 0.59% uptick. Noteworthy support from heavyweight Reliance Industries Ltd (RIL) spurred the rally, propelling the index. The RIL stock surged to 52-week high of Rs 2,958. Global markets trading on a positive note further strengthened the rally.

From a technical standpoint, the daily chart reveals a bullish candle formation while the ADX and MACD indicators maintain a neutral stance. Caution is advised in initiating new long positions until the index surpasses the crucial 21,950 levels which pose significant resistance. Weekly analysis indicates the index hovering below the middle Bollinger band with potential support identified in the 21,550-21,500 zone.

Bank Nifty concluded the session at 45,502.40, marking a 1.38% gain. The index has consolidated within a narrow range over the last three sessions, with 44,600 serving as immediate support. A breach of this level may trigger further selling while surpassing the 46,200 mark could drive the rally toward 47,000. The 50-day simple moving average acts as immediate resistance and the RSI at 45 reflects ongoing weakness.

Nifty Outlook

Rupak De, Senior Technical Analyst, LKP Securities said, "The Nifty exhibited volatility throughout the day, mostly fluctuating within the range of 21650 and 21750. The prevailing sentiment is expected to persist in a sideways to bearish direction as long as the index stays below 21850. On the downside, a short-term support level is identified at 21500. A significant decline below 21500 could potentially initiate a correction towards 21270/21000. Conversely, on the upside, a decisive breakthrough above 21850 might trigger a rally towards 22200."

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "The bulls made a strong comeback, defending the critical support level of 44800, which now serves as a cushion for further upside. The index remains in a buy mode as long as the mentioned support holds, and any dips should be utilized to add long positions. The immediate resistance on the upside is situated at 46000, where the highest open interest is built up on the call side, indicating a potential target for the bullish momentum."

Stocks To Buy Today

On Valentine's Day, Wednesday, February 14, Sumeet Bagadia, Executive Director of Choice Broking, recommended purchasing shares of Wipro and DCM Shriram Industries.

Wipro

Buy WIPRO in cash @ Rs 511.50, SL: Rs 496, target: Rs 535

Wipro Limited, priced at Rs 511.50 for cash transactions, presents a compelling opportunity in the technical domain. The stock is backed by a robust Relative Strength Index (RSI) of 67 and is trading comfortably above significant Exponential Moving Averages (EMAs) such as the 20-day, 50-day, 100-day, and 200-day.

Despite exhibiting strength, Wipro faces resistance near the Rs 529 mark. However, its consolidation phase between Rs 470 and Rs 490 has formed a promising rounding bottom pattern, indicating potential bullish momentum.

For investors eyeing Wipro, a strategic approach is recommended. Buying at current levels, with a stop-loss at Rs 496, provides a safety net against adverse market movements. The target price is set ambitiously at Rs 535, reflecting the potential for substantial gains.

In summary, Wipro's technical setup, including its RSI reading, EMA positioning, and chart pattern, suggests a favourable outlook. With prudent risk management and strategic entry points, investors can position themselves to capitalize on potential upward movements in Wipro's stock price.

DCM Shriram Industries

Buy DCMSRIND in cash @ Rs 209.3, SL @ 204, TGT @ 217

The current market status of the stock reveals a favourable position as it trades around 209.3 levels. An upward movement from the robust support at 183 levels has been observed, showcasing the stock's resilience. Furthermore, the stock is trading above crucial moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, signifying sustained strength.

Momentum is indicated by the RSI (Relative Strength Index), which is on an upward trajectory and currently stands at 68. This RSI movement reinforces the stock's inherent strength. A minor resistance around 212 levels is noteworthy, and a potential breakout beyond this level could propel the stock towards the target of 217 and beyond.
According to the aforementioned technical analysis, we advise buying DCMSRIND at the CMP of 209.3 for the target of 217. If the stock closes below 204, our analysis will be invalid.

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.