Nifty resumed its downward trend on Thursday, closing the day 168 points down after displaying weakness from Tuesday’s intraday highs. The Nifty faced significant selling pressure after opening flat to negative, and it ended the day down around 23,350 levels. The Bank Nifty saw strong selling pressure after opening flat and ended the day down at 50,373 levels. A rise in market volatility was indicated by the India Vix volatility index, which rose 2.09% to 15.99.

Nifty Outlook Today

“The Nifty index remains weak as recovery attempts have repeatedly faltered at higher resistance levels. The index’s continued inability to reclaim the 200-DMA and 10-DEMA reflects bearish dominance, with sellers dictating the trend. Momentum indicators, including the RSI on the daily chart, are trending below 40 levels, signalling a lack of buyer interest and favouring further downside. Immediate support lies at 23,200-23,250, with a breakdown likely to extend the decline toward 23,000-23,050. On the upside, a sustained move above 23,600 may trigger short-covering, providing a temporary reprieve. However, a decisive rebound above 24,000 is essential to negate the bearish bias and shift market sentiment. Until the index convincingly surpasses the 23,800-24,000 zone, a “sell on rise” approach remains prudent. A sustained breach below 23,200 would confirm bearish continuation, while any short-term pullback is likely to face stiff resistance near 23,500-23,600,” said Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities.

Bank Nifty Outlook Today

“The Nifty Bank index exhibits a cautiously bearish trend, with recovery attempts consistently failing in the 50,800-51,000 resistance zone. Elevated call writing in this range further validates the bearish outlook. The index’s position between its 10-DEMA and 200-DMA establishes a critical range for determining the next directional move. While the 200-DMA at 49,900 offers potential support, the persistent selling pressure during rallies keeps the sentiment guarded. A decisive break down below 49,900 could confirm further downside, targeting support near 49,300. Conversely, a breakout above 51,000 may signal a short-term recovery, potentially shifting sentiment. Under current conditions, a “sell on rise” strategy remains prudent. This approach aligns with the ongoing bearish trend and reflects the sustained selling pressure at higher levels. Until the index decisively clears the 51,000 resistances, caution is advised, as rallies are likely to face renewed selling interest,” Dhupesh Dhameja added.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, recommended buying two stocks on Friday, November 22, after the Nifty index’s continuous trading below its 200-day moving average (DMA), which suggests diminishing positive momentum.

Artemis Medicare Services

Buy ARTEMISMED in cash @ Rs 320.2, Stop-loss: Rs 310, Target: Rs 340

ARTEMISMED Industries has recently exhibited a robust breakout from the critical resistance zone of 305 – 270 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 ARTEMISMED 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 ARTEMISMED 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 ARTEMISMED Industries in cash at CMP of 320.2 for the target of 340 with a stop loss of 310.

Avalon Technologies

Buy AVALON in cash @ Rs 872.45, Stop-loss @ 840, Target @ Rs 920

AVALON is exhibiting strong bullish momentum, currently trading at an all-time high of 897.7 levels. The recent breakout above the crucial resistance at 840 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, AVALON 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 79.89 levels.

For traders, keeping an eye on the strong support near 840 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, AVALON 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 AVALON and the CMP of 872.45 with a stop loss of 840 for the target of 920.

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.

Story first published: Friday, November 22, 2024, 7:41 [IST]