Buy/Sell: 4 Swing Trading Call By VLA Ambala On Wednesday, 21st Feb

The Nifty recorded a fresh all-time high and concluded the day on Tuesday very close to the 22200 mark, signalling a bullish trend in the market. Notably, there is a high possibility that the Nifty50 will continue to show bullish tendencies, given the price remains above the 21850 range.

The index's rally was driven by leading banking stocks - for instance, HDFC witnessed a sharp rise of 2.70% during intraday as the market prepared to dip buy the stock.

The Bank Nifty formed a bullish 'Marubozu' candlestick on the daily timeframe, indicating a continuation of the rally in the coming week. The strong finish above the previous 'High Wave' candlestick pattern shows a promising outlook for the stock market's upward momentum, especially in banking stocks.

Stock Market Review

The day marked the third time in February when the Nifty ended the day above the 22000 mark. During the intraday, the index formed a 'High Wave' candlestick pattern, ending the day above 2217 and signalling a potential increase in price in the upcoming days.

In such a situation, my advice for Swing traders would be to shift their trailing range to 21800, in case they have been tracking the index as their reference.

Interestingly, despite the selling pressure from Foreign Institutional Investors (FIIs) amid the rising US bond yields, Domestic Institutional Investors (DIIs), Domestic High Net Worth Individuals (HNIs), and retail investors continue to support the market. Additionally, the market appears to have made peace with delays in Repo cut announcements and anticipated election developments. This again underscores the bulls' desire to retain their control over the Indian stock market as they fail to find better alternatives than India to park their capital.

It should be noted that amid these developments, the major support range has shifted from 21530 to 21470 to 21750 to 21630. Regardless, 21530 to 21470 continues to be the strongest support range for Nifty, and no major fall is anticipated as long as the index retains this range.

Technical Overview of the Stock Market

The India VIX, which measures market volatility, remained elevated above the 16 level, indicating a significant market momentum ahead. The Nifty also formed a 'Bullish Engulfing' candlestick pattern, engulfing the entire trading range from the previous day's close. This breakout hints at a continuation of the uptrend in the market, increasing the likelihood of further price surges in the upcoming days.

Key Levels to Watch on February 21st, 2024

The Nifty index is likely to find support within the 22250 and 22080 range, whereas the index's major resistance point for intraday trading is anticipated between 22300 and 22425. For the Bank Nifty, the intraday support levels could be within the 47200 and 47000 range, with resistance around the 47400 and 47750 levels.

Stocks To Buy Today

Stocks to Buy or Sell Today: VLA Ambala (SEBI Regd. Research Analyst) recommends checking out these four stocks on - February 21, 2024. According to her recommendation, DYNPRO, PITTIENG, TATAELXSI, and JINDALSTEL could provide ample growth opportunities.

DYNPRO

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 300 - Rs. 302
• TARGET 1: Rs. 316
• TARGET 2: Rs. 330
• TIME PERIOD: 15-20 Days
• STOP LOSS: Rs. 279

PITTIENG

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 682 - Rs. 683
• TARGET 1: Rs. 710
• TARGET 2: Rs. 740
• TIME PERIOD: 20-25 Days
• STOP LOSS: Rs. 665

TATAELXSI

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 7750 - Rs. 7780
• TARGET 1: Rs. 7950
• TARGET 2: Rs. 8050
• TIME PERIOD: 8-40 Days
• STOP LOSS: Rs. 7540

JINDALSTEL

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 750 - Rs. 760
• TARGET 1: Rs. 790
• TARGET 2: Rs. 820
• TARGET 3: Rs. 850
• TIME PERIOD: 10-70 days
• STOP LOSS: Rs. 705

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.