Trade Call: Sumeet Bagadia Recommends 2 Stocks To Buy/Sell On Thursday, Dec 14

Wednesday, December 13, saw a flat close for the benchmark indices as the Nifty gained 19.90 points, or 0.10 per cent to settle at 20,926.30, while the Sensex surged 33.57 points, or 0.05 per cent to 69,584.60 at the closing. NTPC, Hero MotoCorp, Power Grid Corporation, Eicher Motors, Adani Ports, and UltraTech Cement were the top gainers on the Nifty, while TCS, Infosys, HDFC Life, and Axis Bank were the top losers. On the sectoral front, Nifty Realty was the top gainer followed by the pharma and auto sector whereas IT was the worst performer followed by the oil & gas sector. On the broader market front, the BSE Midcap index was 1.06% while the BSE SmallCap index added 0.73%.

Market Outlook

"Bulls have shown their presence with a sharp recovery from the lower levels to end the session at 20,926.35 with a gain of 19.95 points. The Power stocks were the outperformers of the day and almost all of them showed notable growth. With gains of over 1%, Realty, Pharma and Auto sectors also performed well while beating in the frontline Tech stocks dragged the sector lower. A strong recuperation was seen in the Broader markets as well with Mid and Smallcaps ending the session with gains of 0.88% & 0.87% respectively and outperforming the Benchmark Index. With a long lower shadow, Nifty50 has made a Dragonfly DOJI candlestick pattern on the daily chart which indicates a reversal of a trend. Now the new range for the Index is 20,780-21,020," said Aditya Gaggar Director of Progressive Shares.

Nifty Outlook Today

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "After a brief dip, the bulls demonstrated strength by defending the crucial support level of 20800. The index witnessed a sharp recovery from the day's low to the high point. The overall market sentiment remains bullish, and considering the current levels, traders are advised to initiate fresh long positions. A stop-loss can be set at 20800, targeting potential upside levels of 21400/21500 in the near term."

Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said, "The Nifty opened on a flat note and has witnessed volatile trading action. Intraday it witnessed a sharp fall and an equally sharp rebound which helped the Nifty to close with gains of ~26 points.

The dip was bought into indicating buying interest at lower levels. The hourly momentum indicator has reached the equilibrium line and is now on the verge of giving a positive crossover indicating that it can start a new cycle on the upside. On the upside immediate hurdle is placed at 21000 - 21050 however once it closes above that it can witness a quick surge to 21202 - 21447. On the downside, today's low of 20770 is a crucial support from short-term perspective."

Bank Nifty Outlook Today

Kunal Shah added, "Despite initial concerns, the Bank Nifty index displayed strength by not breaching the crucial support of 46800 and instead witnessed a sharp rebound from lower levels. To sustain and further advance the upward momentum, the index needs to maintain levels above 47200. A decisive close above 47500, where call writers are active, could pave the way for additional gains, targeting levels of 48000/48500 in the upcoming."

"Bank Nifty found support at the 40-hour moving average placed at 46900 and witnessed a pullback which helped the Bank Nifty to close off the intraday lows. Going ahead we expect the bank Nifty to be range bound between 47500 - 46900 from a short-term perspective. A decisive close above 47500 can lead to a surge till 48000 - 48200," added Jatin Gedia.

Stocks To Buy Today

The executive director of Choice Broking, Sumeet Bagadia, suggested buying two stocks on Thursday, December 14. The entry price, stop loss, and target price for L&T Finance Holdings and GlaxoSmithKline Pharmaceuticals are shown here.

GlaxoSmithKline Pharmaceuticals

Buy GLAXO in cash @ Rs 1732, stop-loss @ Rs 1675, target @ Rs 1840

GLAXO is presently trading at Rs 1732. The stock recently broke out of a rounding bottom pattern, underwent a price retest at the breakout level, and experienced a strong pullback with good volume, indicating a robust uptrend.
The Relative Strength Index (RSI) for GLAXO currently stands at 72.72, suggesting potential upside room for the stock. Additionally, the Stochastic RSI displays a positive crossover, reinforcing the bullish sentiment. Notably, the stock is trading above all major moving averages, highlighting its strength in the market.

Given these technical indicators and the prevailing market conditions, the current level of Rs 1732 presents a favorable buying opportunity for GLAXO. The trade's target is set at Rs 1840, with a recommended stop-loss at Rs 1675 to manage potential risks.

In summary, considering the technical analysis and the existing market dynamics, initiating a long position on GLAXO at the current market price is deemed advantageous, with a target of Rs 1840 and a prudent stop-loss set at Rs 1675. Traders should remain vigilant and adjust their strategies in response to changing market conditions.

L&T Finance Holdings

Buy L_TFH in cash @ Rs 155.25, stop-loss: Rs 151, target @ Rs 162

L_TFH is currently trading at 155.25 levels. The stock has shown a strong upmove after forming a base in a range of 150-152 levels. The stock is also trading above its short-term (20 Day), medium-term (50 Day) and long-term (200 Day) EMA levels indicating strength. Momentum indicator RSI is currently trading at 66 levels moving higher. On the daily chart, we can witness a small resistance around 157 levels. Once stock crosses the above-mentioned resistance it can move higher towards the target price of 162 and higher.

Based on the above analysis we recommend buying L_TFH at CMP of 155.25 with a stop loss of 151 for the target of 162.

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.