Trade Call: 2 Technical Picks By Sumeet Bagadia On Wednesday, 27th Dec

On December 26, benchmark indices closed higher for the third straight day on a mixed set of indications ranging from reversed FII inflows amid risky global cues. The Nifty gained 91.90 points or 0.43 per cent to close at 21,441.30, while the Sensex surged 229.84 points, or 0.32 per cent to settle at 71,336.80.

Divis Laboratories, Hero MotoCorp, Adani Enterprises, ONGC, and NTPC were the top Nifty gainers, while Bajaj Finance, Bajaj Finserv, Infosys, TCS, and Tata Motors were the top losers. With the exception of IT, media, and PSU Bank, every sector saw a positive outcome; the oil and gas, metal, and pharmaceutical sectors saw the strongest improvements. The BSE Mid-cap index climbed by 0.72%, while the small-cap index gained 0.48% on the broader market front.

Market Outlook

"Indian equities commenced the truncated week on a strong note and as the day progressed, the Index was seen compounding its gains to settle at 21,441.35 with gains of 91.95 points. Index rally was mainly driven by the Energy and Metal stocks followed by Pharma while Media and IT segments witnessed a correction. Chemical counters were the star performers of the day by regaining their lost momentum while Defence stocks strengthened their uptrend by registering fresh highs with volumes. Hidden Bullish Divergence in RSI played its part very well as Nifty50 has formed a bullish candle on the daily chart and indicates a high probability of reclaiming its previous peak of 21,593. The immediate support stands at 21,370 while 21,560 will act as resistance," said Mr. Aditya Gaggar Director of Progressive Shares.

Stocks To Buy Today

The executive director of Choice Broking, Sumeet Bagadia, recommended buying two stocks on Wednesday, December 27. For HDFC Bank and Torrent Pharma, the following are the entry price, stop loss, and target price.

HDFC Bank

Buy HDFCBANK in cash @ Rs 1682.45, stop-loss @ Rs 1650, target: Rs 1750

On the weekly chart, the stock has strong support at 1650 levels and currently trading at 1682.45 forming a three-rising soldiers pattern. Also, the stock is trading above all the important moving averages.

On a daily chart, the stock has formed an inside candle. Once stock surpasses the small resistance of 1690 it can move towards the target of 1750 levels and above. In addition, a momentum indicator RSI is currently trading near 73 levels indicating strength. So based on the above technical structure, we are recommending a buy position in the stock for the medium term.

We recommend buying HDFCBANK at a CMP of 1682.45 with a medium-term target price of 1750. Our analysis will be deemed invalid if the price closes below 1650.

Torrent Pharma

Buy TORNTPHARM in cash @ Rs 2282, stop-loss: Rs 2227, target: Rs 2350

The daily chart analysis of torrent pharma reveals a promising outlook for the next upcoming days, signalling a sustained upward movement. Notably, the stock has formed a significant cup and handle pattern, and the recent upward swing has successfully breached the neckline, establishing a new 52-week high for the stock. This breakout suggests the potential for a substantial follow-through upward movement in the stock price.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The daily Relative Strength Index (RSI) supports this positive sentiment. Furthermore, Torrent Pharma is currently trading above its crucial 20-day, 50-day, and 200-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given the overall chart pattern, the analysis suggests a favourable long trading opportunity for investors.

Based on the above analysis we recommend buying Torrent Pharma in cash at CMP of 2282 for the target of 2350 with a stop loss of 2227.

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.