Trade Setup Friday: Key Factors To Dictate Sensex, Nifty Today: GHCL, Amara Raja Among Stocks To Buy

Indian market is likely to open with a cautious tone on Friday as Gift Nifty traded in red during early trade. While Asian shares were broadly in green amidst drop in tresuries and crude oil prices extending their losses. Yesterday, both Sensex and Nifty 50 ended flat but in red.

On Friday, if Nifty slips below 19,700, it could bring fresh downward trend, however, if crossed over 19,850 then fresh buying could drive the benchmark towards crossing 20,000. Experts have suggested to avoid trading in shares that are attracting noticeable tractions and instead focus on sectors/themes stocks.

Yesterday, Sensex ended at 66,017.81, down by 5.43 points or 0.01%, while Nifty 50 ended at 19,802 lower by 9.85 points or 0.05%. Pharma, IT, and consumer durable stocks were top bears.

On this performance, Vinod Nair, Head of Research at Geojit Financial Services said, "Range-bound momentum continued on main indexes as the market looked for new triggers for a decisive move beyond the 19800 level. However, broad markets' undercurrent is strong and rapid buying has emerged in the mid- and small-cap counters as bargaining strategy arose on recent underperforming stocks. The declining oil prices and ease in US bond yields are the key positives for a broader recovery for the market. The European market was mixed ahead of the ECB minutes and the release of manufacturing index data."

Further, Prashanth Tapse, Senior VP (Research), Mehta Equities said, "Markets were extremely lacklustre on the back of thin volumes. It looks like a lot of capital has been making its way into the IPO market over the last few days, and investors including retail ones don't want to miss the bus."

Tapse also added, "Once the current IPO rush is over, we may see investors returning to secondary markets, provided there are no major hiccups in global markets. The good news is that the short-term technical outlook for Nifty continues to be in favor of the bulls. Technically, Nifty needs to reclaim the 19889 mark to unleash fresh upside, while support is placed at 19471 mark."

Day Trade Guide Today:

For Today, Manu Rishi Guptha, CEO & Founder, MRG Capital said, "Nifty closed with flat gains for second straight day due to no overnight cues from the US markets (US markets holiday on 23 Nov) and no fresh cues domestically post results season updates. Bank nifty continues to be volatile post RBI retrictions on unsecured credit. Markets now are driven by stock specific news and global factors."

Guptha added, "Today's opening trade could be no different and can open on a flat note again. Global factors like Israel-Hamas truce deal and how it pans out, OPEC meeting on further oil production cuts for the next year are the two main factors which will drive markets. State election results' opinion polls and actual results which shall start reporting from next week can give further direction to markets. These are more important as the general elections 2024 comes closer."

According to Guptha, 19600 acts as support for Nifty and any breakout from current range can take Nifty to 20000 levels. Bank nifty can trade between 43200-43800.

Meanwhile, Rupak De, Senior Technical analyst at LKP Securities believes Nifty remained range bound while encountering resistance around 19850. On the hourly chart, an ascending triangle is forming, suggesting a probable upside breakout. Sentiment is anticipated to stay sideways as long as it holds above 19700. However, a drop below 19700 might exert downward pressure on the Nifty. Resistance at the higher end is established at 19850; a significant move beyond this level could trigger a rally towards 20200 in the short term.

In case of Bank Nifty, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "The Bank Nifty index maintained its sideways momentum, crucially holding the support level at 43,300, which stands as a make-or-break point for the index. The immediate hurdle for further upside is positioned at 43,700, and a breakthrough above this level is anticipated to lead to additional gains toward 44,000, where substantial call writing is evident. Conversely, a breach of the support level may result in further corrective moves towards 42,800-42,700 levels."

To investors, Ajit Mishra, SVP - Technical Research, Religare Broking said, "Nifty attempted to overcome the hurdle at 19850 but failed again due to divergence among the heavyweights. We maintain our positive view amid consolidation in the index and suggest continuing with a "buy on dips" approach. Traders should focus on sectors/themes that are attracting noticeable traction and avoid laggards."

Also, Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher has recommended buying three stocks on Friday. These are:

- BUY GHCL at 544.95 stoploss 536 Target 567

- BUY AMARA RAJA ENERGY at 666.75 stoploss 657 Target 692

- BUY ABFRL at 226.30 stoploss 223 Target 170

Dislaimer: 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.