Trade Call: 2 Technical Stock Picks By Sumeet Bagadia On Thursday, 28th Dec

On December 27, benchmark indices closed higher for the fourth day in a row, supported by positive global cues. The Nifty gained 213.50 points or 1.00 per cent, to close at 21,654.80, while the Sensex surged 701.63 points, or 0.98 per cent to settle at 72,038.43. Hindalco Industries, UltraTech Cement, Bajaj Auto, JSW Steel, and Tata Motors were the top gainers on the Nifty, while ONGC, NTPC, Adani Enterprises, UPL, and Britannia Industries were the top losers.

All sectoral indices ended the day in the green, with the exception of oil and gas and power. The best performers were PSU Bank, auto, metal and bank. On the broader market front, the BSE Midcap index ended 0.41% higher and the BSE SmallCap index ended 0.20% higher.

Market Outlook

Rahul Sharma Director, Head- Technical & Derivative Research , JM Financial Services said, "After a brief midweek panic last week, bulls are back with a bang albeit with some caution. India VIX has touched a new high on multi-month time frame indicating possibility of some volatility as we approach the monthly expiry.

FIIs have been buyers in the last couple of sessions in Index options while they continue to stay long in the index futures segment. Banks have been a bit late to this party but now seem ready to breakout from the current range. PSU Banks are the strongest while private banks are expected to play catch up. 21,800 on the Nifty and 49,000 on the Nifty Bank seems likely tomorrow."

Nifty Outlook

Om Mehra, Technical Analyst, SAMCO Securities said, "The ongoing firm trend in the Nifty persisted as it closed in the green for the 4th consecutive day. The Nifty opened higher at 21,497 and soon got caught into selling pressure but the Index recovered with strength during closing trades to hit a fresh record high of 21,675.75.

The appearance of a bullish candle with the same open and low confirms the bullish outlook. A substantial gap-up opening is generally regarded as strong support as well. While the hourly chart with Fibonacci retrenchment of 23.6% outlines the immediate support at 21,500 levels. The next rally would attempt to reach the 21,800-21,850 zone. However, India VIX, the fear gauge rose by 6 % intraday and ended at 15.56."

Bank Nifty Outlook

"Bank Nifty notched another all-time high at 48,347.65, securing a gain of 1.17%. The rally was notably bolstered by shares of the private sector banks as stocks surged beyond their respective resistance levels indicating a potential shift in momentum toward the higher side in the upcoming sessions. Positive signals persist on the daily chart with indicators like RSI and MACD. The immediate support remains at 47,800 levels. In a bull market, corrections occur sharply but recover quickly. Traders should hedge their overnight position in this volatile market," added Om Mehra.

Stocks To Buy

On Thursday, December 28, Choice Broking's executive director, Sumeet Bagadia, recommended buying two stocks. The entry price, stop loss, and target price for ICICI Bank and Jindal Steel and Power are as follows.

ICICI Bank

Buy ICICIBANK in cash @ Rs 1002.25, stop-loss: Rs 987, target: Rs 1035

ICICI Bank has demonstrated resilience, rebounding from the crucial support at 990, closely aligned with its 20-Day Exponential Moving Average (EMA). The stock's current level stands at 1002.25, indicating a positive trajectory.

Trading above key moving averages signals inherent strength. A minor resistance at 1017 is evident, and a successful breach of this level may propel the stock toward the target of 1035 and beyond. Investors can find confidence in the stock's upward momentum, with strategic entry and potential gains expected as ICICI Bank charts a path toward higher levels.

Based on the above analysis we expect ICICIBANK to move higher towards 1035 and hence we recommend buying ICICIBANK at a CMP of 1002.25 with a SL of 987.

Jindal Steel and Power

Buy JINDALSTEL in cash @ Rs 733.70, stop-loss @ Rs 715, target: Rs 768

Jindal Steel & Power Limited (JINDALSTEL) is displaying promising technical signals on the daily chart, marked by the formation of a bullish candle. Currently trading at 733.70, the stock faces a minor resistance near 740 levels. A successful breach of this resistance could pave the way for an upward move towards the target price of 768 and beyond. The stock has a robust support zone around 715, closely aligned with its 20-Day Exponential Moving Average (EMA), reinforcing its strength.

JINDALSTEL maintains its position above crucial moving averages, affirming its positive momentum. The Relative Strength Index (RSI) at 62 further underscores the stock's strength. Investors can consider potential entry points as the stock navigates through its resistance levels, with the technical setup indicating a favourable path for upward movement in Jindal Steel & Power Limited.

With a short to medium-term target price of 768, we advise purchasing JINDALSTEL at the CMP of 733.70. If the price closes below 715, our analysis will be regarded as being 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.