Stocks To Buy Today: Day Trading Picks By Sumeet Bagadia of Choice Broking On Monday, 13th May

Before correcting and moving sideways for the rest of the day, Nifty ended the day 98 points higher at 22,055, having started the day strongly and reaching an intraday high of 22,131. For the twelfth day in a row, the India VIX grew, closing at 18.47, up 1.50%. The Bank Nifty began the day with a high of 47868 after opening positively. However, strong selling pressure caused it to end the day flat to negative at 47421.

Market Outlook Today

"Different timeframes suggest different views i.e. the weekly chart depicts a bearish trend as the Index has formed a Bearish Engulfing candle, in contrast, an Inside Bar candlestick pattern (on the daily chart) with a hidden bullish divergence in RSI around the lower end of the triangle pattern suggests a trend reversal. We believe that the level of 21,830 is a firm support for the time being while 22,230 will be considered as a strong resistance, and breakdown of the support will drag the Index further lower to 21,700. Conversely, 22,400 can be considered as the next resistance once it breaches the immediate hurdle. In the rising channel, BankNifty has virtually completed its corrective move and is set to reverse from the lower end of the channel," said Aditya Gaggar, Director of Progressive Shares.

"The downside of the channel is protected at 47,200 while the higher side seems to be capped at 48,100. Among the sectors, we remain bullish on the Auto segment (Bharat Forge- Consolidation Breakout, Hero Motocorp- Bullish Flag and Pole Breakout, and Tata Motors- Symmetrical Triangle Breakout). Trendline breakdown coupled with a bearish engulfing candle and bearish divergence in RSI in the Energy and Realty segments indicates a change of short-term to negative. Not only the FMCG sector but some of its components have also given a breakout from the different patterns which indicates an end of the consolidation phase (Britannia- Falling Channel Breakout /GodrejCP- Flag and Pole Breakout). During the week, the Metal sector has also felt the heat of the selling but considering an overall uptrend, the ongoing correction will be assumed as a strong buying opportunity," Aditya Gaggar further added.

Nifty Outlook

"On technical front, The Nifty index has approached its lower trading range after a recent correction from its record high. Since the beginning of 2024, the index has exhibited a sideways consolidation pattern. Despite current volatility and downward pressure, a potential buying opportunity exists if Nifty can hold above its previous low of 21,777. A successful defense of this level could trigger a recovery. On the upside, the 22,200-22,400 zone presents a potential resistance area. If Nifty can overcome this hurdle, a short-covering rally might ensue. Conversely, a breach below 21,777 could lead to further selling pressure, pushing the index towards 21,550 and even 21,200," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Bank Nifty Outlook

"The Bank Nifty index experienced a sharp decline after failing to surpass the psychological barrier of 50,000. Currently, it finds itself hovering near its crucial 100-day moving average (DMA) at around 47,200. If the index can maintain this support level, a potential rebound is in sight. The initial hurdle on the upside would be the 20-DMA, positioned around 48,200. A breakout above this level could trigger short covering, propelling the index towards 48,600 and even 49,500. However, a breakdown below 47,200 could exacerbate selling pressure, dragging the index down to 46,600 and potentially even 46,200," commented Santosh Meena.

Stocks To Buy Today

On Monday, May 13, Choice Broking's executive director Sumeet Bagadia recommended buying or selling two intraday stocks.

Hindustan Zinc

Buy HINDZINC in cash @ Rs 525.5, stop-loss @ Rs 509, target @ Rs 555

HINDZINC, which is presently trading at an all-time high of 540.95 levels, is displaying significant bullish momentum. Strong trading volumes have backed the recent breakout above the critical resistance at 488 levels, which is an important technical development that highlights the strength of the stock. The discovery raises the possibility that the upward trend would continue, providing investors with a positive outlook.

To further support its bullish outlook, HINDZINC is also trading above important moving averages, such as the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs. Relative Strength Index (RSI), a momentum indicator, is currently at 77.34 points.

It is advisable for traders to monitor the strong support level around 509 levels, as a breach of this level may indicate a change in market attitude. HINDZINC present technical configuration overall shows a favourable atmosphere for potential upside growth going forward, so long as traders and investors keep a careful eye on important support and resistance levels and are alert to any possible reversals.

We advise purchasing HINDZINC at the CMP of 525.5 and a stop loss of 509 in order to reach the target of 555, based on the analysis above.

TVS Holdings

Buy TVSHLTD in cash @ Rs 10195.35, stop-loss: Rs 9888, target: Rs 10888

TVSHLTD daily chart analysis reveals a notable shift in market dynamics, transitioning from a period of minor declines and sideways consolidation to a promising upside bounce. This breakout has been accompanied by a consolidation of the upward movement, characterized by Bullish Pattern. The strong bullish sentiment is further validated by a noticeable surge in trading volume.

Key technical indicators, particularly the Relative Strength Index (RSI), highlight the positive momentum in the stock. The RSI not only indicates favourable trends but also aligns with the stock trading above important moving averages, including the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). This convergence underscores the continued strength in TVSHLTD price action.

In summary, the decisive breakout, along with encouraging volume and the positive alignment of key technical indicators, suggests a bullish outlook for TVSHLTD. Traders and investors may interpret this analysis as indicative of potential sustained upward momentum in the stock.

Considering the above analysis, we recommend TVSHLTD in cash at the current market price (CMP) of 10195.35, setting a target of 10888, and implementing a stop loss at 9888.

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.