Tata Communications/CEAT: 2 Technical Picks By Sumeet Bagadia On Thursday, 26th September

Nifty had a rough start to the day, but as the day went on, the index picked up positive momentum, hit a new all-time high of 26,032.80, and ended on Wednesday at 26,004 levels. There has been a decline in market volatility as seen by the volatility index, INDIA VIX, which dropped by 7.37% and settled at 12.41. Bank Nifty began the day lower than it ended, but as the day went on, the index gained bullish momentum, and at 54,102, the Bank Nifty index closed the day higher than it had opened. In light of the volatility, stock selection and tactical risk management are essential. According to Choice Broking executive director Sumeet Bagadia, these two stocks are good buys at the present moment.

Nifty Outlook

"Technically, the index is on the verge of crossing the upper trend line resistance of the channel pattern, which is around the range of 26,000 levels. If the index sustains above 26,000 levels, then it could test the levels of 26,200. On the downside, 25,800 will serve as a short-term support for the index. Thus, buy on dips strategy should be adopted in Nifty for the short term," said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bank Nifty Outlook

"Technically, the index is oscillating within a rising channel and placed above the breakout point of a rounding bottom pattern breakout, indicating strength. However, in the short-term index might face a hurdle near 54500 levels and if sustains above it then it might test the levels of 55,000-55,500, where the upper trend line resistance of the channel pattern is placed. On the downside, the breakout level near 53,350 and the psychological level of 53,000 will serve as support points. Thus, buy on dips strategy should be adopted in Bank Nifty for the short term," commented Hrishikesh Yedve.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, suggested buying two intraday stocks considering the Nifty index is exhibiting a solid formation of higher highs.

Tata Communications

Buy TATACOMM in Cash @ 2127.7, SL @ 2055, target @ 2256

Tata Communications (TATACOMM) is currently trading at Rs 2127.7 and has shown a strong bullish trend, forming a higher high and higher low pattern. The stock recently broke out from its previous all-time high, further confirming the upward momentum. This breakout is accompanied by a significant increase in trading volumes, indicating strong buying interest.

It is likely to target Rs 2256 in the short term. The Relative Strength Index (RSI) is currently at 68.84, reflecting bullish strength, but it is approaching overbought territory, so caution is advised. Additionally, TATACOMM is trading comfortably above its key 20-day, 50-day, and 100-day Exponential Moving Averages (EMA), further reinforcing the positive trend. If the stock sustains above the critical resistance level of Rs 2150.

In conclusion TATACOMM presents a favorable long trading opportunity given the current technical setup. Investors can consider entering a long position with a target price of Rs 2256, while maintaining a stop loss at Rs 2055 to manage risk effectively. Proper risk management is essential to protect against potential downside.

CEAT

Buy CEATLTD in cash @ 3111.95, SL: 3010, Target: 3300

CEATLTD is presently trading at 3111.95 levels. On the daily chart, the stock has formed a strong bullish momentum candle, signifying a resurgence of strength in its price action.

A robust support level is situated at 3010 levels. This confluence of support factors enhances the stock's stability and resilience.

Furthermore, CEATLTD is trading above all the important moving averages, which underscores its overall bullish posture and trend.

The Relative Strength Index (RSI), a momentum indicator, is hovering around 67.22 levels. This RSI reading suggests that the stock possesses considerable strength and also It signifies a healthy and sustainable uptrend.

A minor resistance level is noticeable in the vicinity of 3150 levels. Once the stocks successfully surpass this resistance, it has the potential to advance towards the target level of 3300. This could present a favourable trading opportunity for investors and traders alike.

Based on the above analysis we recommend buying CEATLTD at CMP of 3111.95 with a SL of 3010 for the target of 3300.

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.