Stocks to buy or sell: Sagar Doshi of Nuvama recommends L&T Tech, Navin Fluorine, Radico Khaitan today – 11 December | Stock Market News
Stock Market today: The domestic benchmark indices, Nifty 50 and Sensex, started the day with minimal movement on Wednesday, as investors looked forward to crucial inflation figures from the US later today and the domestic inflation report on Thursday for insights into the interest rate paths of both countries.
The Sensex gained 19.22 points, reaching 81,529.27 in initial trading; the Nifty 50 increased by 21.55 points to hit 24,631.60.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that Nifty 50 is currently in a phase of consolidation and is expected to stay within this range with a slight upward tendency in the short term. A significant factor boosting the market is the resurgence of Foreign Institutional Investors (FIIs), resulting in increased strength among large-cap stocks, especially in the banking and IT sectors. The fact that FIIs have resumed buying has invigorated retail investors, who had adopted a cautious stance following a nearly 10% decline from the peak in September.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50 has been consolidating for the past 2 trading days after a bumper week wherein it gained 650 points. While the consolidation is about to end on charts, Nifty 50 could now resume its rally to northwards of claiming back 24,950 levels as Tuesday’s low of 24,500 odd has coincided with a polarity trendline being in place from the start of this year. This trendline has been acting as an active demand zone for the index and hence downside looks capped for a while.
Bank Nifty
Bank Nifty has been continuing its outperformance against the Nifty after it has been sustaining above the 52,600 resistance zone. With the immediate targets now been met, the index now readies itself for an upside to uncharted territory / all time high levels of 54,500 odd. The ratio charts are consistently pointing out that the ongoing outperformance is likely to continue for the rest of this month. Any dips between 53,000 – 53,200 are likely to get bought into and traders should look to add longs in this range on spot levels for a fresh all time high targets.
Bank Nifty’s outperformance can resume against the Nifty 50 for the rest of December series.
Stocks To Buy or Sell on Wednesday – Sagar Doshi
On stocks to buy or Sell on Wednesday, Sagar Doshi of Nuvama recommended three stocks – L&T Technology Services Ltd, Navin Fluorine International , and Radico Khaitan Ltd.
L&T Technology Services Ltd (BUY) : LCP : 5,369; S/L : 5,160; Tgt : 5,800
L&T Technology Services has been consolidating ever since it broke out of its sloping trendline same time last month. With a 2 week high closing now printed on charts, stock seems ready to cross the ongoing resistance of 5425 on the upside for a breakout above the same. A quick 8-10% follow up rally in the same direction is likely to unfold given the momentum in IT names and set up on the current stock.
Navin Fluorine International Ltd (BUY) : LCP : 3,647.50; S/L : 3,520; Tgt : 3,970
Stock has been in a northward traction since it broke out from a one year correction – end of last calendar month. Daily charts have been witnessing a higher high formation while being at a 5 month high closing. The momentum is only getting stronger with buyers visible across all hourly candles for the session we saw on Tuesday. Another 8-10% rally can unfold from the current set up on Navin Flourine.
Radico Khaitan Ltd (BUY) : LCP : 2,425.85; S/L : 2,320; Tgt : 2,700
A stellar rally has been seen for the past 4 years on Radico while the short term, stock had entered into a range bound consolidation. This consolidation is nearing a completion with Tuesday’s high of 2468 acting as a trigger zone. Any sustaining above the same is likely to allow the stock print a fresh all time high once again on charts. A quick 10-12% rally can be seen as a follow through for the stock as it ends the ongoing consolidation phase.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
