Ajit Mishra of Religare Broking says buy Coromandel, Granules stocks today

Nifty Today, Stocks to Buy Today: The Nifty has breached a critical support level at 24,300, and the sharp decline in the banking sector is exacerbating the weakness

Stock Market View

The markets extended their losses for a third straight session on Wednesday, declining by over half a per cent. Following a flat opening, the Nifty gradually slipped lower during the first half and then moved within a range until the close. 

 

Persistent foreign fund outflows and caution ahead of the Federal Reserve's policy decision continued to dampen sentiment. Most sectors mirrored the broader market trend, with banking, metals, and energy being the top losers. The broader indices also faced selling pressure, ending lower by 0.6 per cent to 0.9 per cent.

 

The Nifty has breached a critical support level at 24,300, and the sharp decline in the banking sector, which had been pivotal in the recovery, is now exacerbating the weakness. This could potentially drag the index further down toward the previous swing low zone i.e. 23,850-24,000, while resistance is expected in the 24,450-24,600 zone. Despite the cautious outlook, there are stock-specific opportunities on both the upside and downside, and traders should position themselves accordingly.

 

 

Stocks to Buy, Sell Today, December 19:

 

Coromandel International Limited |LTP: Rs 1,833.75 | Buy | Target: Rs 1,950 | Stop-loss: Rs 1,770

Coromandel has broken out of its consolidation phase after establishing a robust base around its 20-day exponential moving average (DEMA). Additionally, the stock has reclaimed its all-time high after nearly four months of consolidation. The chart pattern, supported by confirmation from technical indicators, suggests a steady upward trajectory in the near term.

 

Granules India Limited | LTP: Rs 596.80 | Buy | Target: Rs 640 | Stop-loss: Rs 575

The pharma sector is displaying a mixed trend, but Granules appears poised for a recovery. The stock has established a strong base over the past three months, consistently holding above its long-term 200-day exponential moving average (DEMA). The presence of a supportive moving average ribbon across multiple time frames further strengthens the positive outlook. Traders may consider initiating fresh long positions at the current levels.

 

Coal India Limited | LTP: Rs 397.15 | Sell Futs | Target: Rs 374 | Stop-loss: Rs 410

Coal India has been steadily declining over the past two months, following a breakdown from a distribution pattern. In continuation to the move, it formed a fresh shorting pivot near the resistance zone around the Rs 420 level and breached the support zone of its previous swing low. Considering the likelihood of further downside, we recommend initiating short positions.

 

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Disclaimer: Ajit Mishra is SVP-Research at Religare Broking Limited. Views expressed are his own. For further disclosures, visit: https://religareonline.com/disclaimer