Trade Call: 2 Stock Picks By Sumeet Bagadia On Friday, 23rd Feb

The Nifty gained 162 points to close at 22,217 on Thursday, while the Sensex climbed 535 points to 73,158, demonstrating a robust market attitude notwithstanding strong global cues. The market momentum was in favour of gains, with a 5:4 advance-to-decline ratio. On the Nifty, the primary gainers were Bajaj Auto, HCL Technologies, Eicher Motors, ITC, and Coal India; the top losers were IndusInd Bank, HDFC Bank, BPCL, Kotak Mahindra Bank, and HUL. The weekly expiry of Nifty options prompted the market to remain extremely volatile. With the exception of BankNifty, every sector had a positive day's end, with IT and autos showing the strongest performance.

Nifty Outlook

Rupak De, Senior Technical Analyst, LKP Securities said, "The market remained highly volatile due to the weekly expiry of Nifty options. On the lower end, it found support at the 21EMA before rallying towards higher levels. The momentum indicator has experienced a bullish crossover. Overall sentiment has turned positive once again, with the potential to reach towards 22,400/22,600 in the short term. On the lower end, support is placed at 22,100."

Bank Nifty Outlook

Mr.Ajit Kabi, Research Analyst at LKP Securities said, "Nifty Bank has underperformed in last one year mainly driven by poor stock performance of heavyweights HDFC Bank and Kotak Mahindra Bank. We are witnessing the banks trading at higher valuations than their historical median barring two large banks; HDFC Bank and Kotak M Bank. The sharp correction in these two banks led to valuation comfort and earning upgrades is likely to bring investor sentiment back. Hence, we are optimistic on HDFC Bank with current valuation of around 2.7x Price to book."

Stocks To Buy Today

On Friday, February 23, Choice Broking's Executive Director - Sumeet Bagadia has a bullish momentum on the shares of TCS and Vijaya Diagnostic Centre. The analyst has initiated a buy call on both stocks in the trading session today.

TCS

Buy TCS in cash @ Rs 4087.10, stop-loss@ Rs 3970, target @ Rs 4350

Tata Consultancy Services (TCS) is currently positioned for potential upside, trading at Rs 4087.10. The stock has been forming new higher highs and higher lows, indicating a bullish trend. This pattern is further supported by significant trading volume, suggesting strong market interest and potential further upward movement.

TCS is currently trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This indicates a robust bullish momentum, signalling the potential for continued upward price action. The Relative Strength Index (RSI) is at 59, indicating an upward trajectory and confirming an increase in buying momentum.

Buy TCS at Rs 4087.10, to manage risk effectively, traders are advised to set a stop-loss (SL) at Rs 3970. This stop-loss level is intended to safeguard investments in case of an unexpected market reversal.

In conclusion, TCS appears to offer a promising buying opportunity for those aiming for a target price of Rs 4350. However, investors should implement prudent risk management measures, including setting a stop-loss, to protect their investments.

Vijaya Diagnostic Centre

Buy VIJAYA in cash @ Rs 655.10, stop-loss@ Rs 637, target @ Rs 690

VIJAYA, currently trading at Rs 655.10, shows signs of a bullish trend with new higher highs and higher lows. This positive pattern, coupled with significant trading volume, indicates growing market interest and potential further upward movement.

Moreover, VIJAYA is trading above key Exponential Moving Averages (EMAs), such as the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, implying the likelihood of sustained upward price action. The Relative Strength Index (RSI) at 55 reinforces this sentiment, showing an upward trend and increased buying momentum.

For traders looking to capitalize on this potential, buying VIJAYA at Rs 655.10 is advisable. To manage risk, setting a stop-loss (SL) at Rs 637 is recommended. This SL level acts as a safety net, protecting investments in case of an unexpected market reversal.

In summary, VIJAYA presents an attractive buying opportunity, targeting a price objective of Rs 690. However, it is essential for investors to exercise caution and implement risk management strategies, including setting a stop-loss, to safeguard their investments.

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.