Stocks to buy: REC, Cyient, Axis Bank, amid top picks in flat market: Rupak De | Stock Market News

Stock Market today: The domestic benchmark indices, Nifty 50 and Sensex, commenced the second week of December with a slowdown, as both indices began Monday with a slight decline.

At 12:46 IST, Nifty 50 index was trading at 24,626.55 points, down 51.25 points, while Sensex was at 81,569.48, down 130.96 points.

Market experts have noted that there has been a recovery of approximately 50 percent since the decline observed in October and November; however, it is expected that the market will remain in a phase of consolidation before advancing towards a rally.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that the short-term market trend is slightly optimistic. The momentum for the recent rally, which has propelled the Nifty up by 3.2% over the past two weeks, has been driven by the key banking sector, which remains reasonably valued and has the capacity to push the market further. Additionally, the return of Foreign Institutional Investors (FIIs) is another encouraging factor that bodes well for large-cap stocks.

Technical views by Rupak De, Senior Technical Analyst, on F&O market

Nifty 50

For Nifty 50 the last expiry date was Thursday, December 5. The Nifty 50 remained strong throughout the week, gaining more than 2%. On the daily chart, the Nifty 50 gave a breakout from an inverse head and shoulders pattern, indicating a bullish reversal.

Additionally, the Nifty 50 has sustained above the 21-EMA on the daily timeframe, further pointing toward a positive trend. The daily RSI is in a bullish crossover following a consolidation breakout. On the weekly timeframe, the index has also given a consolidation breakout, with the price moving above the 21-week exponential moving average. The weekly RSI has entered a bullish crossover. In the short term, the index may continue moving toward higher levels, with the potential to reach 25,500 and even higher. However, following a recent sharp rally, a small pullback cannot be ruled out. Therefore, it would be prudent to apply a “buy on dips” strategy in the current market scenario. On the downside, support is placed at 24,350.

Open Interest Analysis:Significant PUT writing was visible at 24,200, 24,700 strike on Friday; while CALL writing activities was visible at 24,700/25000. Maximum CALL open interest position was seen at the 25,000 strike; maximum Put open interest position was seen at the 24,500 strikes indicating a near term range for the Nifty 50. CALL writers seen outnumbering PUT writers in the weekly expiry.

Strategy: Buy NIFTY 12 Dec 24500 PUT Above 110 TARGET 160 STOP LOSS 79

Technical stock recommendations for the week

Buy REC at ₹559; Target Price of ₹590; Stop Loss at ₹544

The stock has given a consolidation breakout on the daily chart, indicating increased optimism in the short term. Additionally, the stock has moved above the 21-EMA on the daily timeframe. The daily RSI is in a bullish crossover, further supporting the positive outlook. In the short term, the stock could move toward 590. On the downside, support is placed at 544.

Buy CYIENT at ₹1,996; Target Price of ₹2,080/2,120; Stop Loss at 1,940

The stock has broken its strong resistance at 1940 levels, forming a bullish candlestick on the daily chart. It is sustaining above its 21-day EMA, with the RSI in a bullish crossover, signaling robust ongoing momentum. These factors indicate strength in the stock, making it a good buying opportunity at the current market price. Traders can consider a stop-loss at 1940 on a closing basis, with targets set at 2080 and 2120 for potential upside gains.

Buy Axis Bank at 1,183; Target Price of ₹1,240; Stop Loss at 1,154

The stock has given a consolidation breakout on the daily chart, indicating increased optimism in the short term. Additionally, the stock has been sustaining above 200DMA on the daily timeframe. The daily RSI is in a bullish crossover, further supporting the positive outlook. In the short term, the stock could move toward 1,240. On the downside, support is placed at 1,154.

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.