Ajit Mishra of Religare Broking suggests buying these two stocks on Nov 14

Ajit Mishra gives trading strategy for November 14, recommends buying 2 stocks and selling one futures

Market View

Markets extended their corrective phase, declining by nearly one and a half percent, continuing the existing downward trend. After a flat opening, Nifty gradually drifted lower, retesting its critical support at the 200-day exponential moving average (DEMA) for the first time in nearly five months. 

 

Pressure was felt across key sectors, with realty, metal, and auto stocks among the biggest losers. Broader indices also experienced a sharp decline, each losing over 2.5 per cent.

 

Nifty has now corrected more than 10 per cent from its record high, reaching its major moving average support. Notably, alongside the benchmark index, banking index, midcap, and smallcap indices also retested their long-term support levels at the 200 DEMA today. 

 

 

This confluence of support and oversold conditions might trigger a rebound, although any recovery could be limited to select stocks. 

 

Traders are advised to monitor positions closely and maintain a hedged strategy.

Stocks recommendations

ABB India Limited | LTP: Rs 6,828.00 | Sell Futs | Target : Rs 6,540 | Stop loss: Rs 6,980

The stock has formed a double-top reversal pattern following a strong rally, and it has now confirmed a breakdown, indicating a shift to a downward trend. The current negative market sentiment further strengthens this signal, suggesting traders may consider initiating short positions based on the specified levels.

 

Coromandel International Limited | LTP: Rs 1,689.90 | Buy | Target: Rs 1,830 | Stop loss: Rs 1,620

The stock is in a clear uptrend, consistently making higher highs and higher lows. Currently, it is trading within a narrow range near its previous breakout zone, forming a new buying pivot. With strong support above its short-term moving averages, the positive trend remains intact. Traders may consider using this consolidation phase to accumulate positions.

 

Infosys Limited | LTP: Rs 1,868.40 | Buy | Target: Rs 1,970 | Stop loss: Rs 1,820

The IT sector is showing significant resilience amid the current market correction, with Infosys demonstrating a similar strength. The stock has rebounded after finding support at its downward trend line and has reclaimed its short-term moving average, the 20-week exponential moving average (WEMA). These signals suggest that the stock is well-positioned for a continued gradual upward move.  (This article is by Ajit Mishra, svp-research at Religare Broking. Views expressed are his own.)