Trade Call: 2 Stock Picks By Sumeet Bagadia To Buy/Sell On Wednesday, 20th Dec

Tuesday's closing price of the key Indian indices was higher. The Nifty 50 wrapped up 0.16% higher at 21,453.10 points, while the Sensex surged 0.17% at 71,437.19 points at the end of the day session. Coal India, Nestle India, Tata Consumer Products, NTPC, and Cipla were the top gainers on the Nifty, while Adani Ports and Special Economic Zone, Wipro, Adani Enterprises, UPL, and TCS were the biggest losers.

In terms of sectors, the top gainers were Nifty FMCG, consumer durables, and oil and gas; the top 3 losers were the IT, auto, and media sectors. On the broader market front, the BSE Midcap index fell 0.3 per cent, while the smallcap index reached a new record high of 42,544.95, before concluding at 42,327.60 with gains of 0.10%.

Market Outlook

Mr. Aditya Gaggar, Director of Progressive Shares said, "Extreme volatility was seen on both sides whereas in the opening trade, a strong recovery was witnessed under the leadership of heavyweight Reliance. In the mid-session, PSU Banks and Pharma counters joined the party and pushed the Index further higher to register a fresh high of 21,505.05; however, towards the end of the day, the Index pared off some of its gains to settle at 21,453.10 with gains of 34.45 points. On the sectoral front, Energy was up by 1.58% and ended the session as a top performer followed by FMCG (+1.41%) while IT and Auto sectors witnessed a profit-booking pressure.

Underperformance was observed by the Broader markets as Mid and Small Caps corrected by 0.38% & 0.12% respectively. Nifty50 has made a Long Legged DOJI candlestick pattern which indicates indecisiveness between the bulls and bears. The range of consolidation will remain the same i.e. 21,330-21,500."

Nifty Outlook

Rupak De, Senior Technical analyst at LKP Securities said, "Nifty found support just above the 21EMA on the hourly chart, prompting a strong recovery in the latter part of the session. The momentum indicator maintains a positive crossover, suggesting ongoing strength. The bullish trend is expected to persist as long as it stays above 21350 consistently. On the upper side, Nifty is likely to encounter resistance from call writers at 21500. A definitive breakthrough above 21500 could potentially initiate a substantial market rally; until then, consolidation appears probable."

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "The Bank Nifty index maintained its consolidation phase within a range but needs to close above the crucial level of 48000 to sustain the upward momentum. The lower-end support is positioned at 47800, and a decisive break below this level on a closing basis may trigger additional selling pressure in the market."

Stocks To Buy Today

The executive director of Choice Broking, Sumeet Bagadia, recommended buying two stocks on Wednesday, December 20. For Godrej Consumer Products and Coal India, these are the entry price, stop loss, and target price.

Godrej Consumer Products

Buy GODREJCP in cash @ Rs 1050.35, stop-loss: Rs 1025, target: Rs 1100

Godrej Consumer Products Limited (GODREJCP) appears to have exhibited a notable resurgence in its stock price. It recently rebounded from a support level at 1028 and is presently trading at around 1050.35. The fact that the stock is trading above all the important Exponential Moving Averages (EMA) suggests that there's significant strength.

Additionally, the Relative Strength Index (RSI) indicator, which hovers around the 60 level, indicates a balanced market sentiment, potentially poised for an upward move.

There's a minor resistance level at 1065, which the stock needs to breach. If it successfully closes above this level, it may have the potential to advance towards 1100 and beyond.

Based on the above analysis we recommend buying GODREJCP at CMP of 1050.35 with a SL of 1025 for the target of 1100.

Coal India

Buy COALINDIA in cash @ Rs 367, stop-loss: Rs 354, target: Rs 392

Based on the provided technical analysis, COALINDIA on the daily chart has exhibited a breakout from a Rounding Bottom pattern, accompanied by substantial trading volume. Following the breakout, the stock underwent a retest and subsequently formed a higher high and higher low. Additionally, COALINDIA is presently trading above key Exponential Moving Averages (EMAs), specifically the 20-day, 50-day, 100-day, and 200-day EMAs, signaling robust bullish momentum and the potential for continued upward price movement.

Moreover, the Relative Strength Index (RSI) indicator is comfortably positioned near 70.79, indicating strength in the stock. There exists a minor resistance level around 382. A successful breach of this level by COALINDIA could potentially drive the stock towards the 392 level and potentially even higher. It is crucial to emphasize that the stock is presently trading above all significant moving averages, further affirming its underlying strength.

In light of this analysis, we recommend considering a long position in COALINDIA at the current market price of 367, with a medium-term target price of 392. However, it is important to exercise caution, as a drop below 354 would invalidate our analysis.

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.