Trade Call: 2 Technical Intraday Stock Picks By Sumeet Bagadia On Monday, April 22

Indian benchmark indices started the week on a sluggish tone, which continued throughout the week due to the tension between Iran and Israel. On the last day of the week, rising geopolitical tensions frightened the Indian stock market as Nifty50 ended the week at 22,147.00, down 372.40 points from the previous week. Every sector had a red week's end, with PSU Banks and IT being the most notable underperformers. Geopolitical tension and goal-oriented behaviour will continue causing volatility on both sides in the final week of April. Today Reliance Industries will be closely watched as the company is going to declare its Q4 results.

Market Outlook

"A steep fall followed by a shooting star candlestick pattern led to a negative divergence in RSI which indicates a reversal of trend on the weekly chart; however, the daily chart diverged with a piercing candlestick pattern which is coupled with a hidden bullish divergence and strong support of 21,700. We believe that the Index will oscillate in a wide range of 21,700-22,430. BankNifty has successfully tested its lower end of the rising channel and 50DMA support. The immediate support is placed at 46,900 while the higher side seems to be capped at 48,160. A mixed activity is expected in the Auto sector where we remain bullish on Escorts and Motherson Sumi while some more downside is left in TVS Motors. The IT sector has given a breakdown from its strong support level which indicates change of short-term trend to negative. We continue to retain our positive stance on the Metal space. Couple of stocks look strong on the technical front namely Likhitha Infrastructure (Bullish Flag and Pole Breakout), and Saregama (Symmetrical Triangle Breakout). Geo-political tension and result-oriented activity will continue to add volatility on either sides," said Mr. Aditya Gaggar, Director of Progressive Shares.

Aditya Gaggar further added, "A complete reversal from the lower levels pushed the Index higher to end the 19th April trade at 22,147. In different timeframes, different viewpoint are developed i.e. shooting star candlestick pattern with a negative divergence in RSI indicates a reversal of trend on the weekly chart; however, the daily chart suggests positivity with a piercing candlestick pattern which is coupled with a hidden bullish divergence and strong support of 21,700. We believe that the Index will oscillate in a wide range of 21,700-22,430 and early indication from GIFT Nifty depicts a strong opening for the Indian equities. Regarding sectors, a mixed trend can be expected in the Auto space; bullish on Escorts and Motherson Sumi. We have been constantly recommending Metal stocks and it has been performing as per our expectations helping us retain our positive stance. A couple of stocks look strong on the technical front namely Likhitha Infrastructure (Bullish Flag and Pole Breakout), and Saregama (Symmetrical Triangle Breakout)."

Stocks To Buy Today

In accordance with technical analysis, Choice Broking's executive director Sumeet Bagadia recommended buying or selling both of the stocks listed below on Monday, April 22.

Kalpataru Projects International

Buy KPIL in cash @ Rs 1206.4, stop-loss: Rs 1166, target: Rs 1288

KPIL has recently exhibited a robust breakout from the critical resistance zone of 1105-1175 on the daily chart, consolidating the move with higher highs and higher lows. 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 KPIL Industries price action.

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

Based on the above analysis we recommend buying KPIL Industries in cash at CMP of 1206.4 for the target of 1288 with a stop loss of 1166.

Savita Oil Technologies

Buy SOTL in cash @ Rs 592.2, stop-loss @ Rs 574, target @ Rs 615

SOTL is exhibiting strong bullish momentum, currently trading at an all-time high of 601.95 levels. The recent breakout above the crucial resistance at 550 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, SOTL 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 83.31 levels.

For traders, keeping an eye on the strong support near 574 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, SOTL 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 SOTL and the CMP of 592.2 with a stop loss of 574 for the target of 615.

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.