Buy/Sell: 3 Swing Trading Stock Picks By VLA Ambala On Friday, 1st March

The Stock market is patiently waiting for the Government of India's report on GDP Quarterly Report, FED Fiscal Deficit Data, Infrastructure Output Report, and CPI Inflation Report. These much-awaited stats are likely to fuel the market sentiments significantly and prompt the next big moves. On the other hand, we are very close to a new high, with current prices lying just 1.15% to reach Nifty all-time high. While further pullback is expected, it may not be indicative of a reversal in trend.

Notably, Nifty has delivered nearly 23% YoY returns, which is quite impressive. Regardless, the market experiences profit booking at an all-time and almost every time before the election. Usually, investors feel more comfortable when the market valuation is not too high. This is because over-valuation often leads to profit booking, pushing investors to seek better options to park their funds or lay low until the prices cool off.

Besides SEBI's latest nudge to limit flow in mid-cap mutual funds, the uncertainty in the global market is influencing the market significantly. It is further expected that the impact of the global market will not shift more towards Bitcoins and debt markets.

As we enter the last month of the financial year, we should brace for position shuffling. This is because typically the market movement around the end of a fiscal year tends to be complex to navigate smoothly. In addition to these, the uncertainties around the US bond yield and interest rate hike continue to slow down the global market momentum, said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Technical View of the Market

During the day on 29th Feb, the Nifty formed a dual candlestick pattern 'Bullish Piercing Line' on the daily timeframe. Notably, below this pattern, the index will continue to observe bearish sentiments. On the other hand, going above this will prompt a new upside rally.

The day concluded with the index closing below 15th January's closing price. This movement suggests that over the past 45 days, Nifty has yielded negative returns.

The index also reached 54 Relative Strength Index (RSI) a daily time frame and is likely to touch the 40-45 range soon, marking a significant shift in the oversold territory.

Then again, the weekly Relative Strength Index (RSI) points at 68, which is still on the higher side. However, there is a chance of further price correction in the upcoming 2-4 days.

Price divergence has been also seen as Nifty trades nearly 3.50% below its 20-week Exponential Moving Average (EMA). Similarly, the bearish MACD Cross Down in Nifty was seen at the daily timeframe around the 22050 price range, which is a key level in the index, said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Market View for 1 March 2024 Friday

After taking into consideration the above factors, it can be anticipated that the benchmark index will continue to fall in the next few days. The range that will be traded for that duration is likely to be between 2% and 3.35%, with key support levels at 21970 and 21850, and resistance at the 22070 and 22150 levels.

On the other hand, the Banking Index broke its support range at the hourly timeframe and is likely to decline further. Amid this situation, 46100, 45800, and 45000 would serve as the key support target and 46350 and 46500 could emerge as major resistance.

Individuals should keep a close eye on sectors like MEDIA, METAL, and REALTY, as they look quite promising at the moment, compared to other sectors, according to V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Stocks To Buy Today

V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) has recommended the below stocks for swing trading on Friday, 1st March 2024.

NEWGEN

• TRADE TITLE: INTRADAY/BTST
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 857
• TARGET 1: Rs. 87
• TARGET 2: Rs. 88
• TIME PERIOD: 20-70 Days
• STOP LOSS: Rs. 830

CGPOWER

• TRADE TITLE: SWING TRADE
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 445 - Rs. 450
• TARGET 1: Rs. 480
• TARGET 2: Rs. 500/530
• TIME PERIOD: 25-30 Days
• STOP LOSS: Rs. 415

ZENTEC

• TRADE TITLE: SWING
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 875
• TARGET 1: Rs. 885
• TARGET 2: Rs. 900
• TARGET 2: Rs. 930
• TIME PERIOD: 20-70 Days
• STOP LOSS: Rs. 830

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.