Trade Call for Tuesday, April 23: Two Stock Selections By Choice Broking’s Sumeet Bagadia

Robust global indicators and a reduction in tensions between Israel and Iran contributed to the Nifty index’s notable early-morning gain on Monday. In the end, the Nifty closed the day higher, at 22,336. The Nifty Bank index opened with a significant gap and rose steadily all day, closing at around 47,925. With the exception of PSU Banks and consumer durables, most industries, including capital goods stocks, pharmaceuticals, autos, and fertilizer, had positive returns.

The US will announce GDP and core PCE statistics this week, which will affect market mood, even though Q4 results from significant companies including TATA Consumer Products, ICICI Prudential Life Insurance Company, Tata Elxsi, and Mahindra & Mahindra Financial Services are being published today.

nifty forecast
Senior Technical Analyst at LKP Securities, Rupak De said, “Bulls remained in control of the market as the Nifty advanced for a second straight day. Once the trend recovered a crucial near-term moving average, it began to turn positive. As long as sentiment holds over 22,150, bulls should continue to benefit. There is a chance that the index may rise to 22,600–22,700. On the other hand, a decline below 22,150 may cause the index to consolidate.”

Bank Nifty Prospects
The BankNifty index showed persistence of bullish vigor as follow-through purchasing from lower levels was seen. At now, it is getting close to a critical resistance level of 48000, which is indicated by the maximum open interest on the call side. More short covering actions are expected in response to a clear break above this level. As for now, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said that any decline towards the 47600–47500 levels might provide a buying opportunity. Immediate support is located at these levels.

Stocks To Buy Today On Tuesday, April 23, Sumeet Bagadia, executive director of Choice Broking, advised purchasing or disposing of two stocks in light of technical analysis.

Plastics manufactured by Shaily Engineering
Cash purchase: SHAILY at Rs. 612.25; stop-loss at Rs. 588; goal at Rs. 645

A positive outlook for the next week is provided by the SHAILY daily chart analysis, which shows a consistent upward climb. The stock has shown a noteworthy pattern of higher highs and lower lows, and the company’s current upward move has successfully broken through the neckline to set a new week high. This discovery suggests that there may be a large upward follow-through rise in the stock price.

Growing market interest is shown by the growth in trading volume, which contributes to the upward momentum. The stock produced a robust bullish candle, indicating that the uptrend may continue. Additionally, the daily strength indicator, or RSI (14) is rising and above its reference line, suggesting a favorable bias. Moreover, SHAILY is now trading above its key Exponential Moving Average (EMA) levels of 20 days, 50 days, and 100 days, therefore consolidating the positive trend. The study points to a favorable long-term trading opportunity for investors given the overall chart pattern.

We advise purchasing SHAILY in cash at the CMP of 612.25 with a stop loss of 588 in order to reach the objective of 645, based on the analysis above.

Tech Wabag VA
Purchase WABAG with cash at Rs 1005.15, objectives at Rs 1077, and stop-loss at Rs 965.

WABAG is now trading at an all-time high of 1017.05, demonstrating strong bullish momentum. Strong trading volumes have backed the recent breakthrough over the critical resistance at 950 levels, which is an important technical event that highlights the strength of the stock. The discovery raises the possibility that the rising trend would continue, providing investors with a positive outlook.

WABAG is also confirming its bullish position by 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 now at 78.3 points.

It is essential for traders to monitor the strong support level around 965 levels, as a breach of this level may indicate a change in market attitude. The overall technical structure of WABAG points to a favorable atmosphere for possible upward growth going forward, so long as traders and investors keep a careful eye on critical support and resistance levels and are alert to any potential reversals.

We advise purchasing WABAG at the CMP of 1005.15 and a stop loss of 965 in order to reach the objective of 1077, based on the analysis above.