Stocks To Buy Today: Intraday BUY/SELL Calls By Sumeet Bagadia On Thursday - 21st Nov

The Nifty started Tuesday's session well, holding an upward trend for the first half of the day until coming under heavy selling pressure close to the immediate resistance level of 23,800. After a tumultuous session, Nifty Bank recovered somewhat, closing the day at 50,626.50, up 0.52%. The index started the day strongly and continued to rise for the majority of the day, but strong profitable trading in the closing hours wiped out a large amount of the gains that had been made. A special trade holiday on Wednesday disrupted the week, causing the India VIX to jump and currently near the 16 mark, indicating increased uncertainty. This may make Thursday's market fluctuations even more noticeable. The India VIX spiked up 3.26% to 15.66, indicating greater prudence and the possibility of more selling activity.

Nifty Outlook Today

"The Nifty index's trajectory remains bearish, with recovery efforts repeatedly stalling at higher resistance levels. The close below the 200-DMA and last week's low of 23,800 reflects caution, while the sustained trading below the 10-DEMA confirms selling dominance. Immediate support lies in the 23,500-23,450 zone, with a breach opening downside potential toward 23,200-23,250. Conversely, a decisive rebound above 23,800 would indicate a potential fake-out, offering temporary relief. Until then, a "sell on rise" approach is recommended, especially if the index fails to break above the 24,000-resistance level. A sustained move above 24,000 could negate the bearish bias and prompt a shift in sentiment," said Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities.

Bank Nifty Outlook

"The Nifty Bank index maintains a cautiously bearish outlook, with recovery attempts consistently encountering resistance in the 50,800-51,000 range. Elevated call-writing in this zone reinforces the bearish sentiment. The index's current position between its 10-DEMA (51,000) and 200-DMA (49,900) establishes a crucial range; a breakout on either side will determine the next directional move. While proximity to the 200-DMA at 49,900 suggests a potential support level, repeated selling pressure on recoveries keeps the outlook guarded. A decisive break below the 50,400 mark could confirm a bearish continuation, with the next support likely near 49,900. Conversely, a breakout above 51,300 may signal a shift in sentiment, potentially sparking a recovery. Under prevailing conditions, a "sell on rise" strategy is recommended, especially if the index struggles to clear the 51,300 resistances. This approach aligns with the ongoing bearish trend and sustained selling pressure at higher levels," commented Dhupesh Dhameja.

Stocks To Buy Today

On Thursday, November 21, Choice Broking's executive director, Sumeet Bagadia, recommended buying two stocks since the Nifty index was circling the crucial demand zone of 23,500-23,300.

Safari Industries (India)

Buy SAFARI in Cash @ Rs 2476.35, Stop-loss @ Rs 2390, Target @ Rs 2626

SAFARI is currently trading at 2476.35, showing strong bullish momentum. Recent price action reveals a decisive upward movement after a period of consolidation, indicating renewed buying interest. This rally is reinforced by a reversal from the critical 200-day Exponential Moving Average (EMA). This upward movement is strengthened by SAFARI surpassing all significant EMA levels, underscoring a robust upward trend. The stock's ability to maintain this momentum and overcome its higher levels, could potentially push it toward a short-term target of 2626.

The RSI (Relative Strength Index) stands at 66.65, trending upward, indicating increasing buying momentum. To manage risk effectively, a stop-loss at 2390 is recommended to protect against any unexpected market reversals.

In conclusion, based on the technical setup and prevailing market conditions, SAFARI presents a favorable buying opportunity with a potential target of 2626, contingent upon proper risk management strategies.

M&M

Buy M&M in Cash @ Rs 2948.95, Stop-loss @ Rs 2846, Target @ Rs 3155

M&M is currently trading at Rs 2,948.95, exhibiting bullish momentum. The stock has recently rebounded from its support level at Rs 2,800, which coincides with the 100-day Exponential Moving Average (EMA), and is approaching a breakout from an ascending triangle pattern. This formation traditionally indicates a potential continuation of the upward trend. The Relative Strength Index (RSI) is at 54, suggesting the uptrend remains healthy with room for further gains.

Moreover, M&M is trading comfortably above its 20-day, 50-day, and 200-day EMAs, reinforcing its positive trajectory. This bullish technical setup is further validated by a rise in trading volumes, highlighting growing investor interest. A decisive move above the key resistance level of Rs 3,000 could confirm the breakout and provide an ideal entry point for long positions.

Traders may consider entering at the current price of Rs 2,948.95, with a target of Rs 3,155. To mitigate downside risk, a stop loss is recommended at Rs 2,846. While the technical indicators project a favorable outlook, traders should remain vigilant about potential short-term market fluctuations.

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.