Trade Call: 2 Stock Recommendations By Sumeet Bagadia of Choice Broking On Friday, 26th April

On the day of the F&O expiry, bulls retained their position on Dalal Street and continued their upward trend for the fifth session straight. At 22,570, the Nifty ended the day higher than it had started. India's VIX increased by 4.42% to 10.73, reflecting expectations for short-term volatility.

Market Outlook Today

Aditya Gaggar, Director of Progressive Shares said, "On a positive note, the markets ended the April F&O series higher at 22,570. With a bullish engulfing candlestick pattern, the Index has filled the bearish gap zone of 22,430-22,500 and is all set to move toward its previous high of 22,750 while the support level has been shifted higher to 22,450. BankNifty imitates Nifty50 and now the next hurdle is placed at 49,000 while the lower side seems to be protected at 48,160.

Investors should keep an eye on Tata Motors and Tata Motors DVR as they are on the brink of a Symmetrical Triangle Formation breakout. From the Energy segment, NTPC has given a breakout from a bullish Flag and Pole formation while Coal India is at the cusp of providing a breakout from an Inverted Head & Shoulder Formation. Positive momentum will remain in the Metal segment.

At the lower end of the consolidation, the Pharma segment has given a breakout from an Inverted Head & Shoulder Formation which indicates a continuation of an uptrend (DR Reddy- Bullish Flag and Pole Breakout, JB Chemical- Rounding Bottom Breakout). With a Symmetrical Triangle Formation breakout, the PSU Banking sector has completed its consolidation and some of the components have already given a breakout while some are on the verge of a breakout (IOB, SBIN, UCO Bank- Symmetrical Triangle Breakout, Bank of India- Consolidation Breakout, Bank Baroda- On the verge of a breakout)."

Nifty Prediction

Rupak De, Senior Technical Analyst, LKP Securities said, "The Bulls finally had their day as the Nifty ended with a significant green candle following a series of small candles, suggesting meaningful buying activity during the day. Moreover, the index continues to stay above the 21-day Exponential Moving Average (EMA), which is a critical near-term moving average. Additionally, the momentum indicator RSI is showing a bullish crossover, indicating positive momentum in the index value. Over the short term, the index might remain strong with an upside potential ranging between 22750-22800. On the lower end, support is placed at 22450."

Bank Nifty Prediction

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "The index remains in a buy mode, with robust support noted at 48000, where the highest open interest is observed on the put side. Additionally, during today's session, the index found strong support at its 20DMA, leading to a notable reversal, indicating potential further upside towards the 49000/50000 mark."

Stocks To Buy Today

The executive director of Choice Broking, Sumeet Bagadia, recommended buying or selling two stocks on Friday, April 26, based on technical analysis.

Sun Pharmaceutical Industries

Buy SUNPHARMA in cash @ Rs 1520.15, stop-loss: Rs 1480, target: Rs 1600

SUNPHARMA is currently valued at Rs 1520.15. Recently, a reversal from the bottom, indicated by a Morning star candlestick pattern at the bottom, suggests a bullish reversal, accompanied by robust trading volume. These patterns indicate a strong potential upward trajectory in the stock.

The Relative Strength Index (RSI) presently stands at 42.73 and is trending upwards, suggesting a significant surge in buying momentum. Both RSI and Stochastic RSI are in the overbought region, indicating that positional traders may consider holding their positions and implementing a trailing stop-loss.

The overall trend for SUNPHARMA is bullish, with various technical indicators reinforcing the optimistic outlook. Given these signals, there is potential for the stock to reach target prices of Rs 1600 in the near term.

It is advisable to consider buying on dips, especially around Rs 1494, to capitalize on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at Rs 1480 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal.

MOIL

Buy MOIL in cash @ Rs 430.7, stop-loss @ Rs 416, target @ Rs 466

MOIL is exhibiting strong bullish momentum, currently trading at an all-time high of 439.3 levels. This breakout has been accompanied by a consolidation of the upward movement, characterized by higher highs and higher lows, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, MOIL is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 81.8 levels.

For traders, keeping an eye on the strong support near 416 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, MOIL current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying MOIL and the CMP of 430.7 with a stop loss of 416 for the target of 466.

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.