Trade Call: Day Trading PSU Stock Picks By Sumeet Bagadia On Tuesday, 16th July

Monday saw a rise in domestic benchmark indexes thanks to positive global cues. As a result, Nifty set a new record high of 24,635.05 and ended the day higher at 24,587 points. After starting the day with a gap up, the Bank Nifty kept up its bullish trend and ended the day at 52,456 levels. The majority of industries saw positive gains, with PSU Bank, Oil & Gas, Realty, and Healthcare seeing considerable buying. Following a spike in June of 3.36% in India's WPI inflation, investors' attention has turned to the country's continuing Q1 results and approaching Budget 2024.

Nifty Outlook

"Technically, the index formed a doji candle near the resistance zone, indicating uncertainty. Thus, the high of this doji candle, which is around 24,635 will act as a short-term hurdle for the index. If the index manages to close above it, then the rally can extend towards the 24,800-25,000 levels," said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bank Nifty Outlook

"Technically, on a daily scale, the index formed a bullish candle after taking support near the 21-Days Exponential Moving Average (21-DEMA). The 21-DEMA is positioned near 51,915, while the recent swing low is situated near 51,750. As long as the index holds above 51,750, a buy-on-dips strategy should be adopted in the Bank Nifty. On the upside, 52,800 and 53,000 will serve as strong resistance levels," Hrishikesh Yedve commented.

Stocks To Buy Today

On Tuesday, July 16, Choice Broking's executive director Sumeet Bagadia suggested purchasing two stocks based on the conclusions of a technical analysis.

NLC India

Buy NLCINDIA in cash @ Rs 294.5, stop-loss: Rs 285, target: Rs 310

NLCINDIA is currently trading at Rs 294.5. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of Rs 290 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching Rs 310 levels. On the downside, substantial support is evident near Rs 285.

Furthermore, NLCINDIA is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 73, signalling an upward trajectory and confirming an increase in buying momentum.

In summary, considering the technical analysis and prevailing market conditions, NLCINDIA appears to present a promising buying opportunity for those targeting a Rs 310 price objective, contingent upon the implementation of prudent risk management measures.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 285 to protect the investment in case of an unexpected market reversal.

Mahanagar Gas

Buy MGL in Cash @ Rs 1742.10, stop-loss @ 1660, target @ 1900

MGL has formed a strong bullish candle on the daily chart, reflecting significant buying interest as it trades near its all-time highs. Following an impulsive upward movement, the stock has entered a consolidation phase, indicating stability. Importantly, it has found support near the short-term 10-day EMA, suggesting a healthy consolidation rather than a potential reversal

The RSI is at 69.91 levels, is trending upward and appears positive, indicating a potential increase in buying pressure. Also, MGL is currently trading above its key moving averages, short-term 10-day EMA, medium-term 50-day EMA, and long-term 200-day EMA, indicating strength in the underlying.

Given the strong technical indicators and positive market sentiment surrounding MGL, the recommendation is to buy MGL at Rs 1742.10, with a stop loss set at Rs 1660 to manage risk. The target price is set at Rs 1900, aligning with the bullish outlook and potential for further gains in the near term.

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.