Buy/Sell: 3 Swing Trading Calls By VLA Ambala On Friday, 23rd February

The Nifty showed a strong rejection of lower prices and concluded near the day's high. However, I do not see any sign of trend reversal based on the price action, at least for the time being. The index concluded the day above the 22200 mark, and there is a high probability that the Nifty 50 will continue to reflect the bullish trend if the price continues to remain above the 21850 range, said VLA Ambala of Stock Market Today (SMT).

During Thursday's market rally, the IT, metal, and auto sectors emerged as the leading domains, with prominent buying sentiment observed in all major sectors except private banking.

The Nifty also formed a 'Bullish Pin Bar' on a weekly timeframe on the weekly chart, which was confirmed to indicate the beginning of the new bullish wave. My advice for the swing traders who track the index Nifty as their reference would be to consider shifting their trailing at the 21850 range, VLA Ambala · SEBI Registered Research Analyst at SMT,

Review of Stock Market

The selling pressure created by FII due to the surging US bond yields has not shown any significant impact as the Domestic Institutional Investors (DIIs), High Net Worth Individuals (HNIs), and retail investors continue to support the Indian stock market in the absence of any other lucrative avenue for the time being. It seems that the bulls are unwilling to lose their control over the stock market.

Amid these developments, the major support range has shifted to 21530 to 21470 to 21850 to 21730 levels. Then again, the range between 21530 and 21470 remains the strongest support for Nifty, signalling that a major fall is not expected as long as the market retains this level.

Another notable development in the industry was the NSE granting provisional approval to garment manufacturer Globe Textile India Ltd to raise over Rs. 45 crore through the rights issue of shares to support the company's expansion plan. Meanwhile, government-owned stocks witnessed a significant jump in the past year, with the BSE PSU index soaring 100%, outperforming the 21% surge in the Sensex during this period.

The FII emerged as net sellers of financial services shares, offloading key stocks worth Rs. 7,536 crores in the first two weeks of February, following a withdrawal of Rs 30,000 crore in January 2024. Meanwhile, the plunge in the dollar price has prompted a favorable sentiment for the Indian rupee, leading to cost savings in EXIM trades.

Technical Overview of the Stock Market

The India VIX, which reflects the stock market volatility, remained above the 15-20 level, signalling significant momentum in the future. During the day, the Nifty observed a nearly two-fold surge in range compared to its 'Bearish Engulfing candlestick pattern. This positive momentum helped the market revolver almost all of yesterday's trading loss. Given this breakout in the trading range and the potential for a continued uptrend, the probability of further movement is much higher.

Key Levels to Watch on February 23rd, 2024

The Nifty index is expected to gain support within the 22120 and 22050 range, whereas the index's major resistance point for intraday trading could be between 22320 and 22400. For the Bank Nifty, the intraday support levels could be between the 46850 and 46700 range, with resistance around the 47050 and 47280.

Stocks To Buy Today

Stocks to Buy or Sell Today: VLA Ambala (SEBI Regd. Research Analyst) recommends checking out these three stocks on - February 23, 2024. According to her observation, RUSHIL, ASALCBR, and BALKRISIND.

RUSHIL

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 360 - Rs. 362
• TARGET 1: Rs. 375
• TARGET 2: Rs. 390
• TIME PERIOD: 90-120 Days
• STOP LOSS: R.345

ASALCBR

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 500 - Rs. 510
• TARGET 1: Rs. 530
• TARGET 2: Rs. 550 Days
• STOP LOSS: Rs. 480

BALKRISIND

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 2275 - Rs. 2280
• TARGET 1: Rs. 2320
• TARGET 2: Rs. 2450
• TIME PERIOD: 20-50 Days
• STOP LOSS: Rs. 2220

Note: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behavior, and technical analysis.

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.