IT Stock vs FMCG Stock: 2 Technical Picks By Sumeet Bagadia On Monday; Target Prices?

The Indian stock markets had a remarkable week last week, with the Nifty, Sensex, and Bank Nifty all hitting record highs. This was primarily due to buying activity by foreign institutional investors and a 50 basis point rate cut by the US Federal Reserve. The nation's benchmark indices began the day higher, following global cues. Nifty had strong buying activity early in the day, which helped it reach a new all-time high of 25,849 and close below that level throughout the day at 25,791.

Bank Nifty had a strong start to the day and maintained it throughout. At 53793, Bank Nifty ended the day on a strong note, setting a new record high of 54,066.10 points. An increase in market volatility was indicated by the volatility index, INDIA VIX, which climbed to 2.24% and settled at 12.75. The construction industry outperformed all other sectoral indices, with the banking sector coming in second, and the pharmaceutical sector ending the week worse than it started.

Nifty Outlook

"Technically, the index has settled above the previously formed doji, indicating strength. Thus, ongoing bullish momentum is like to take Nifty towards 25,900-26,000 levels. On the upside, 26,000 will act as an immediate hurdle for Nifty. On the downside, 25,500 will serve as an immediate support for Nifty followed by 15-DEMA support, which is placed near 25,300 levels. As long as Nifty stays above 25,600, a "Buy on Dips" strategy is advisable for traders," said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bank Nifty Outlook

"Technically, the index has given a breakout to a fresh rounding bottom pattern. According to the rounding bottom pattern breakout the index can test the levels of 57,000 in medium term. However, in short term the index will face resistance near 55,000 levels. On the downside, the breakout level near 53,350 and the psychological level of 53,000 will serve as support points," predicted Hrishikesh Yedve.

Stocks To Buy On Monday

On September 23, Sumeet Bagadia, executive director of Choice Broking, recommended buying two intraday stocks since the markets have been consistently reaching new highs thanks to strong global trends and persistent market momentum.

ASM Technologies

Buy ASMTEC in cash @ 1693.75, stop-loss 1633, target 1785

ASMTEC has recently exhibited a robust breakout from the critical resistance zone of 1500 -1600 on the daily chart. This breakout is supported by a notable increase in trading volume, indicating strong bullish sentiment.

Key technical indicators, particularly the Relative Strength Index (RSI), emphasize the stock's positive momentum. The RSI not only signals positive trends but also aligns with the stock trading above crucial moving averages, including the 20-day, 50-day, and 200-day Exponential Moving Averages (EMA). This convergence underscores the sustained strength in ASMTEC price action.

In summary, the decisive breakout, coupled with favourable volume and a positive alignment of key technical indicators, suggests a bullish outlook for ASMTEC. Traders and investors may find this analysis indicative of potential continued upward momentum in the stock.

Based on the above analysis we recommend buying ASMTEC in cash at CMP of 1693.75 for the target of 1785 with a stop loss of 1633.

Mrs. Bectors Food Specialities Ltd

Buy BECTORFOOD in cash @ 2115.7, stop-loss @ 2041, target @ 2240

BECTORFOOD is exhibiting strong bullish momentum, currently trading at all-time high of 2200 levels. The recent breakout above the crucial resistance at 2009 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, BECTORFOOD is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 77.76 levels.

For traders, keeping an eye on the strong support near 2041 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, BECTORFOOD current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying BECTORFOOD and the CMP of 2115.7 with a stop loss of 2041 for the target of 2240.

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.