Buy/Sell: 4 Swing Trading Calls By VLA Ambala On Thursday, 29th Feb

The stock market experienced a decline of 1.11% intraday, while the Midcap Index plunged 1.82% during the same period. The major reasons behind this plunge include the profit-booking tendencies of traders, especially when the General Assembly election is drawing nearer. Typically, before elections, the market goes through the pattern of profit booking whenever it is at an all-time high.

Notably, the SEBI rules had a significant impact on Mid-cap mutual funds, along with the global market's influence. For instance, the 0.44% slump in the MSCI index further added to the market fluctuations. Besides this, position bookings were also observed before the February Series' monthly expiry.

Profit booking is essentially a phenomenon triggered by notable market events that trigger investors to consider profit-taking. Typically, investors feel more comfortable with investments whose valuations are not too high. That is because overvaluation tends to prompt profit booking and drive investors to look for better options to park their funds or wait for current prices to cool off.

For those wondering, the latest data released by the government on household consumer expenditure failed to uphold the market sentiments clearly. Meanwhile, factors such as the US bond yield hike, potential interest rate hike, and increased probability of a change in the ruling party have significantly impacted the market trends and will continue to do so for some time. Amid such developments, investors must stay informed about market insights to make effective decisions.

Technical Overview of the Market

Nifty reached 60 on the Relative Strength Index (RSI) in the daily timeframe, while it pointed at 67 in the weekly timeframe, which is still on the higher side. Such momentum suggests a potential for further correction in the next 2-4 days.

Significant price divergence is also observed as the index trades nearly 3.5% from its 20-week Exponential Moving Average (EMA), with price-showing tendencies to fill these gaps as soon as possible.

The 'Hanging Man,' which is a bearish candlestick formation, was observed at the weekly time frame when the price was trading close to an All-Time High (ATH), triggering profit booking activities. A Bearish Cross Down in the MACD indicator on the Nifty index at the daily timeframe suggested a bearish trend in the market.

Market View for 29 February

After analyzing the technical and fundamental factors, I anticipate the Benchmark index to continue to decline in the next 2-4 days. During this period, the index's trading range is anticipated to fluctuate between 2% and 3.35%. Its Key Support levels are identified at the 21860 and 21620 levels, with resistance likely around 22020 and 22090. My advice for investors would be to monitor these levels closely to navigate the market better in the next few days, said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Meanwhile, the Banking Index broke its support range at the hourly time frame and is likely to plunge deeper. For this index, 45950 and 44960 will work as its key support target, and 46000 and 46200 are likely to emerge as major resistance points.

Key Sectors to Watch on 29 February

Traders and investors should watch out for sectors like NIFTY ENERGY, NIFTY METAL, NIFTY REALTY, NIFTY PVT BANK, and NIFTY FMCG in the next 2-3 days. These sectors are currently looking bearish. Hence, investors should plan their activities cautiously around them.

Stocks to Check Out on 29 February

RAMCOSYS

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 285 - Rs. 295
• TARGET 1: Rs. 310
• TARGET 2: Rs. 325
• TARGET 3: Rs. 350
• TIME PERIOD: 25-60 Days
• STOP LOSS: Rs. 260

TANLA

• TRADE TYPE: SELL
• ENTRY PRICE RANGE: Rs. 1000 - Rs. 995
• TARGET 1: Rs. 960
• TARGET 2: Rs. 940
• TARGET 3: Rs. 925
• TIME PERIOD: 25-70 Days
• STOP LOSS: Rs. 1050

HAPPSTMNDS

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 880 - Rs. 885
• TARGET 1: Rs. 930
• TARGET 2: Rs. 950
• TARGET 3: Rs. 1000
• TIME PERIOD: 25-50 Days
• STOP LOSS: Rs. 820

BARBEQUE

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 590 - Rs. 600
• TARGET 1: Rs. 620
• TARGET 2: Rs. 635
• TARGET 3: Rs. 660
• TIME PERIOD: 25-60 Days
• STOP LOSS: Rs. 566

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.