Stocks To Buy Today: Intraday BUY/SELL Calls By Sumeet Bagadia On Monday, 23rd December

The Indian benchmark indexes saw a precipitous drop, with the Nifty50 ending a four-week winning run by dropping below its 200-day EMA. The Sensex dropped below the key psychological threshold of 80,000 to close at 78,041, while the Bank Nifty plummeted more than 5%. The Indian stock markets experienced a terrible week, with the gains of the previous four weeks being erased by a sharp decline in the major indices.

Nifty Outlook Today

"The Nifty50 experienced a significant breakdown, losing 4.77% this week and closing near 23,600, below the crucial 23,800 support level and the 21week-EMA. This triggered broad-based selling across sectors. The next key support is at 23,200, where prices may find some cushioning. On the upside, strong resistance lies in the 23,800-23,900 zone, and a break above this could drive the index towards 24,300. However, the broader market sentiment remains bearish, with a "sell-on-rise" approach prevailing. Traders should exercise caution, closely monitoring support and resistance levels amid heightened volatility and weak technical signals," said Mr. Puneet Singhania, Director at Master Trust Group.

Bank Nifty Outlook Today

"Bank Nifty witnessed a sharp decline from its all-time highs, dropping 5.27% this week and forming a strong bearish candle on the weekly chart. It closed below the 21-week EMA near 50,800. Key supports are positioned at 50,200 and 49,800, where prices are likely to stabilize. On the upside, the resistance zone lies at 51,000-51,200, with a breakout potentially leading to 51,900. The overall strategy remains bearish, favouring selling near resistance levels as the index struggles to regain upward momentum amidst negative technical signals," added Mr. Puneet Singhania.

Stocks To Buy Today

After the India VIX, a crucial indicator of market volatility, increased by 3.98% to 15.07, Choice Broking's executive director Sumeet Bagadia recommended purchasing two stocks, indicating increased prudence among traders on Monday, December 23. A cautious approach is still advised as a sustained rebound seems unlikely given the VIX's break of the crucial 15 barrier.

Newgen Software Technologies

Buy NEWGEN in Cash @ Rs 1574.05, Stop-loss @ Rs 1519, Target @ Rs 1684

NEWGEN is currently trading at Rs 1,574.05, demonstrating a robust uptrend. The stock has successfully broken out of its recent consolidation phase, signaling strong bullish momentum. It recently achieved a fresh all-time high of Rs 1,629. Notably, NEWGEN is trading above its 20-Day EMA, 50-Day EMA, and 200-Day EMA, reflecting strong support across short-term and long-term trends. This technical setup underscores its potential for further upward movement. With the recent breakout above a key resistance level, continued momentum could see the stock aiming for a potential target of Rs 1,684.

On the downside, immediate support is located at 1550. The Relative Strength Index (RSI) is currently at 76.24 and trending upward, reflecting growing buying momentum. To manage risk effectively, a stop-loss at 1519 is suggested to guard against any unexpected market reversals.

In conclusion, based on the technical analysis and current market conditions, NEWGEN presents a promising buying opportunity for those aiming for a 1684 target, provided that appropriate risk management strategies are in place.

New India Assurance Company

Buy NIACL in Cash @ Rs 214.10, Stop-loss @ Rs 206, Target @ Rs 229

NIACL is currently trading at Rs 214.10 and exhibiting strong bullish momentum. The stock has recently broken out of a falling trendline pattern, which typically indicates a potential bullish reversal from a key support zone. This technical breakout is further validated by a significant increase in trading volume, highlighting robust buying interest. A critical resistance level to monitor is Rs 220-if the stock sustains above this level, it could present an ideal entry point for long positions.

The Relative Strength Index (RSI) stands at 48.92 and is trending upward, signaling a healthy uptrend with potential for further growth. Additionally, NIACL is trading comfortably above its 20-day and 200-day Exponential Moving Averages (EMAs) and is approaching its 50-day EMA. A decisive move above the 50-day EMA would further reinforce the positive trend.

Traders may consider entering at the current price of Rs 214.10, with a stop loss set at Rs 206 and a target price of Rs 229. While the technical indicators present a compelling case for potential gains, it is essential to remain cautious of short-term volatility.

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.