Buy/Sell: 3 Swing Trading Calls By VLA Ambala On Monday, 26th Feb

Despite notable mixed global cues, the Indian stock market continues to display resilience as it continues to display its bullish trends. At present, there are no concrete signs of a trend reversal. However, we can anticipate a pullback due to the sentiment of FOMO on profit booking. Amid these, the market is observing a new uptrend, and I believe it could persist for some time, said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

The Nifty index recorded a new all-time high of 22297 and ended the week by closing above the 22200 mark, prompting a sense of optimism in the stock market. For intraday, the Nifty is expected to find its support levels between 22170 and 22100, with key resistance levels at 22340 and 22450. In such a situation, it is best to remain invested to tap into the ongoing bullish trend.

Stock Market Review

During Friday, the stocks of Reliance Industries rallied to touch an all-time high, closing the day with 0.80% gains. On the other hand, HDFC ended the day with marginal gains of around 0.07% intraday. However, it was the PSU stocks that pulled down the Nifty intraday.

Research by Morgan Stanley has found strong confidence in the Indian GDP growth and has projected that its GDP will reach $8.1 trillion in 10 years. The financial company also sees ample opportunity for bottom-up stock picking in the country.

During the week, Jio Financial Services Ltd witnessed a 27% refund, with its market capitalization surpassing Rs. 2 lakh crore for the first time. On the other hand, intraday, RIL set a record high of Rs 2,989 intraday and proceeded to close the weekly candlestick on a positive note. By the end of the day, RAILTEL, INDUSTOWER, and IDEAFORGE stocks surged almost 7% intraday, and they continue to hold potential for the future.

Technical Overview of the Market

Nifty concluded the day above 22200, and there is a high probability that Nifty50 will continue with a bullish trend if the price remains above the 1850 range. During the session, Nifty formed a 'Bearish Belt Hold' candlestick pattern on the daily timeframe and completed the formation of a 'Hanging Man' candlestick pattern on the weekly timeframe, whose RSI stands at 72, signaling overbought territory. However, it is vital to maintain prices above this range to prevent the bears from taking control of the market. Then again, the price will continue to be bullish as it successfully closes above the weekly pattern.

Amid these situations, the Swing traders should consider shifting their trailing range to 21850 if they happen to use the tracking index as a reference. India VIX which effectively measures market volatility was at 14.97, signaling a big move of nearly 2-3.5% within the next 10 days in the market.

Key Levels to Watch on February 26th, 2024

The Nifty index is expected to find support within the 22170 and 22100 range, whereas the index's major resistance point for intraday trading could be between 22340 and 22450. For the Bank Nifty, the intraday support levels could be between the 46490 and 46200 range, with resistance around the 47840 and 47150 levels.

Stocks To Buy On Monday

Stocks to Buy or Sell Today: VLA Ambala (SEBI Regd. Research Analyst) recommends checking out these three stocks on - February 26, 2024. According to her analysis, ALLCARGO, BLUEJET, and ANDHRSUGAR could offer ample growth potential.

ALLCARGO

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 81 - Rs. 85
• TARGET 1: Rs. 90
• TARGET 2: Rs. 100
• TIME PERIOD: 10-80 Days
• STOP LOSS: Rs. 75

BLUEJET

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 355 - Rs. 360
• TARGET 1: Rs. 380
• TARGET 2: Rs. 410
• TARGET 3: Rs. 450
• TARGET 4: Rs. 485
• TIME PERIOD: 30-180 Days
• STOP LOSS: Rs. 330

ANDHRSUGAR

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 115
• TARGET 1: Rs. 125
• TARGET 2: Rs. 145
• TARGET 2: Rs. 180
• TIME PERIOD: 20-50 Days
• STOP LOSS: Rs. 100

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.