Trade Setup | Things To Know Before Market Opening - 21 Feb 2024 Wednesday

Stock market today: The Indian stock market ended higher for the fifth straight session on Tuesday, February 20. Throughout the day, the Nifty reached a high of 22,215.6 and a low of 22,045.85. The Sensex traded between 73,130.69 and 72,510.24, ultimately closing at 72,708.16, a 0.48% increase compared to the opening price, with a gain of 349.24 points. The Bank Nifty ended at 46,535.5, reaching an intraday high of 47,136.75 and a low of 46,367.8.

"Domestic equities gained for 6th consecutive day, trading in unchartered territory. After a subdued start, Nifty bounced back into positive territory and made yet another new high above 22200 zone. The index closed with gains of 75 points at 22197 levels. Broader market, however, ended in the red. Sector-wise it was a mixed bag with buying seen in Banking, Financials, and Realty," said Siddhartha Khemka, Head - Retail Research at Motilal Oswal.

On the outlook for the Nifty 50 index, Rupak De, Senior Technical Analyst, LKP Securities, said, "The Nifty continues its upward momentum following a consolidation breakout on the daily chart. The trend remains robust as it has sustained itself both above the psychological level of 22000 and the 21EMA on the daily timeframe. On the higher end, it may move towards 22400/22600 once the index decisively surpasses the 22200 mark. Support on the lower end is identified at 22000."

On the outlook for the Bank Nifty today, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said, "The Bank Nifty bulls maintained their dominance, closing above the 47000 level, signaling a strong buy mode. Immediate support is now established at 46700, marked by fresh put writing. The index is anticipated to reach the short-term target of 48000, with any dip viewed as a buying opportunity."

On the outlook for the Indian stock market today, Siddhartha Khemka of Motilal Oswal said, “We expect market sentiment to strengthen further as the prospect of a pre-election rally is quite strong. Further, the BSE market cap has touched a record high of $4.7 trillion, thus, showing strength in the market. Globally, investors await the release of US FOMC meeting minutes as this would provide some insights into the US Fed’s future direction."

Speaking on Nifty Call Put Options data, Chinmay Barve, Head of Derivative and Technical Research at Profitmart Securities said, “One of the major total Call open interest was seen at 22300 and 22500 strikes with total open interest of 82673 and 110981 contracts respectively. Strike price of 22550 saw one of the major open interest addition of 39281 contracts," adding, “one of the major total Put open interests was seen at 22100 and 22000 strikes with total open interest of 131270 and 178676 contracts respectively. One of the major Put open interest addition was seen at 22100 strikes which added 39366 contracts in open interest."

On Bank Nifty Call Put Options data, Chinmay Barve said, “One of the major total Call open interest was seen at 47200 and 47500 strikes with total open interest of 82589 and 156715 contracts in open interest. Strike price of 47500 saw one of the major addition of 51003 contracts in open interest," adding, “One of the major total Put open interest was seen at 47000 and 46800 strikes with total open interest of 194337 and 107305 contracts respectively. One of the major Put open interest addition was seen at 47000 strike which added 175552 contracts in open interest."

On stocks to buy today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi; Shiju Koothupalakkal, Technical Analyst at Prabhudas Lilladher; and Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio — recommended nine stocks to buy or sell today.

BAJFINANCE is currently trading at ₹6763.6 and has recently consolidated at the bottom, given a breakout above the range with good volume, indicating a potential reversal and a strong bullish trend. A breakout above ₹6820 could propel the stock towards the ₹7170 level, with an immediate resistance at ₹6850. On the flip side, ₹6554 serves as a crucial support level.

Furthermore, after a prolonged correction, the stock has reversed from the support level. The Relative Strength Index (RSI) is currently at 44, on an upward trajectory, suggesting growing buying momentum. Collectively, these technical indicators imply that BAJFINANCE has the potential to reach the ₹7,170 target in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at ₹6554 to protect the investment in case of an unexpected market reversal. A prudent strategy would involve considering buying opportunities on dips at levels around ₹6700 and ₹6670.

In summary, based on technical analysis and prevailing market conditions, BAJFINANCE appears to present a promising buying opportunity for those targeting a ₹7170 price objective. It is crucial to implement prudent risk management strategies to navigate potential market fluctuations.

SUNPHARMA is presently trading at 1538.70 levels, bounced from the initial support of 1500. This bounce back signifies a potential shift in the stock's price dynamics, making it an intriguing investment prospect.

In addition, the Relative Strength Index (RSI) is trending upward and appears positive, indicating a potential increase in buying pressure. Moreover, SUNPHARMA price is currently positioned above its 20-50-200 Day Exponential Moving Averages (EMA), suggesting underlying strength in the stock.

Taking all these factors into consideration, it is our professional opinion that SUNPHARMA presents a favourable buying opportunity at the current price of 1538.70, with a target price of 1600. It is important to note that our views would be invalidated if the stock were to fall below the 15000 level.

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 1485 so, holding the support level of 1430 this stock can bounce toward the 1485 level in the short term, so the trader can go long with a stop loss of 1430 for the target price of 1485.

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 3740 so, holding the support level of 3640 this stock can bounce toward the 3740 level in the short term, so the trader can go long with a stop loss of 3640 for the target price of 3740.

The stock has indicated a positive candle with decent volume participation witnessed and with the bias improving, we anticipate further rise in the coming days. With the RSI also well placed, has shown improvement, and indicating a buy signal. We suggest to buy the stock for an initial upside target of 148 keeping the stop loss of 135.

The stock after a short consolidation has indicated a positive candle formation on the daily chart with significant volume participation witnessed and can carry on with the positive move further ahead. With the RSI also well positioned is improving and with upside potential visible, we suggest to buy the stock for an initial upside target of 212 keeping the stop loss of 193.

The stock has indicated a flag pattern breakout at 282 zone on the daily chart to improve the bias anticipating for further rise in the coming sessions. With the RSI getting better and with upside potential visible, we expect further rise for an initial target of 303 levels keeping the stop loss of 282.

Cigniti Technology is seen to be breaking out of a downward sloping channel pattern on the daily timeframe and making a bullish candlestick which is why a buy recommendation is initiated for targets up to Rs.1150. One can initiate buy on dip in the range of 1098-1100 with stop loss below 1075 on daily closing basis. The price is trading above the short term EMA (20) indicating uptrend in the security. The RSI is now trading in the northern direction supporting the price action.

Shilpa medicare is seen to be breaking out rectangle pattern exactly on the daily timeframe and making a bullish candlestick which is why a buy recommendation is initiated for targets up to Rs.450. One can initiate buy on dip in the range of 423-425 with stop loss below 410 on daily closing basis.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of PickStock. We advise investors to check with certified experts before making any investment decisions.

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