Trade Call: Sumeet Bagadia Picks 2 Stocks To Buy/Sell/Hold On Friday, 22nd Dec

On Thursday, benchmark indices finished the extremely erratic session on December 21 in the green as the Nifty surged 104.80 points, or 0.50 per cent to 21,255 at the closing, while the Sensex added 358.79 points, or 0.51 per cent to settle at 70,865.10.

BPCL, Power Grid Corporation, Britannia Industries, HDFC Bank, and Apollo Hospitals Enterprise were the top gainers on the Nifty, while Bajaj Auto, Bajaj Finance, Axis Bank, HCL Technologies, and Cipla were the top losers. All sectors ended in green with the top performers being media, oil & gas, PSU Bank and metal. On the broader market front, BSE Midcap and Smallcap indices gained more than 1.6% each.

Market Outlook

"The bulls showed their presence with a swift recovery right from the beginning. In the presence of follow-through, the Index kept compounding its gains to settle the weekly expiry day at 21,255.05 with gains of 104.90 points. All the sectors ended the day in green with Media and Energy being the major outperformers. Market breadth was in favor of bulls as Mid and Smallcaps advanced by 1.69% & 1.94% and outperformed the Frontline Index.

On the daily chart, the Index has made a strong bullish candle with the support of a hidden bullish divergence in RSI (mentioned earlier) which helped the Index to recoup half of its previous session's losses. In today's trade, the Index has virtually filled its bullish gap zone (20,950-21,074) that was formed on 14th December which indicates a strong support base has been placed while the immediate resistance is positioned at 21,340," said Mr. Aditya Gaggar Director of Progressive Shares.

Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "Nifty recently demonstrated resilience, rebounding strongly from a critical support level at 21000, affirming a bullish sentiment. The index closed above its 10-day moving average, signaling positive momentum. Key levels to monitor include 21000 as immediate support and 21300 as the initial resistance."

Bank Nifty Outlook

Kunal Shah stated, "Demonstrating resilience, Bank Nifty robustly rebounded from a crucial support level at 47000, confirming a bullish trend. The index closed above the resistance at 47500, highlighting its strength. Having closed above the 10-day moving average, Bank Nifty finds immediate support at 47500, while 48000 acts as the initial resistance."

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, recommended buying two stocks on Friday, December 22. For Action Construction Equipment and Metropolis Healthcare, these are the entry price, stop loss, and target price.

Action Construction Equipment

Buy ACE in cash @ Rs 859.85, stop-loss: Rs 830, target: Rs 900

ACE is currently trading at 859.85 levels. The stock has strong support near to 830 levels which is also close to its 20-day EMA levels. The stock is also trading above its short-term (20 Day), Medium term (50 Day) and long-term (200 Day) EMA levels. Momentum indicator RSI has also shown sharp bounce and sustaining above 50 at 58 levels. On the daily chart, we can witness a small resistance near to 880 levels. Once stock surpasses the mentioned resistance it can move higher towards the target of 900 and above.

Based on the above analysis we advise to purchase ACE at CMP of 859.85 for the short to medium term with a stop loss of 830 for the target of 900.

Metropolis Healthcare

Buy METROPOLIS in cash @ Rs 1709, stop-loss: Rs 1645, target: Rs 1815

METROPOLIS, currently trading at Rs 1709, has recently witnessed a breakout of a rounding bottom pattern accompanied by significant trading volume. The current price indicates strong bullish momentum, with anticipations of a sustained upward movement towards the Rs 1815 level. Conversely, substantial support is observed near Rs 1645.

Moreover, METROPOLIS is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, indicating robust bullish momentum and suggesting potential for further upward price movement. The Relative Strength Index (RSI) is presently at 62.54, showing an upward trajectory and indicating increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively suggest that METROPOLIS may have the potential to reach a target price of Rs 1680 in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 1645 to safeguard the investment in the event of an unexpected market turn. A prudent strategy would be to consider buying on dips at levels of Rs 1680.

Overall, considering the technical analysis and current market conditions, METROPOLIS presents a promising buying opportunity for those aiming for an Rs 1815 price target, provided that prudent risk management measures are in place.

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.