Buy/Sell: 4 Swing Trading Stock Picks By VLA Ambala On Tuesday, 20th Feb

The Nifty 50 index recorded a new high for the sixth time this year, giving hope for the continuation of the bullish trend. However, such a trend will continue if the Nifty sustains above the 21730 to 21650 range in this financial year. In February, the Nifty closed the day above the 22000 mark for the second time. Notably, during the intraday, the Nifty formed a 'High Wave' candlestick pattern and concluded the day at 22116. In such a situation, swing traders are advised to shift their trailing stops to around the 21800 range if they are tracking the index as their reference point.

Stock Market Review

Interestingly, despite the wavering expectations of a rate cut announcement by the RBI, the domestic institutions showed significant buying interest, adding to the resilience of the equity market. As previously discussed, the bulls are unwilling to lose control over the market as they increasingly find India a better option to park their funds than the rest. As a result, the primary support range has moved from 21530 to 21470 range to 21750 to 21630. However, it should be noted that 21530 to 21470 will emerge as the strongest support range for the Nifty index. Unless this range is breached, a sharp decline is not anticipated in the market.

Technical Overview of the Stock Market

The India VIX closed at 15.22, signalling a prevailing sentiment of volatility in the stock market. During the day, the Nifty formed a 'High Wave' candlestick pattern above its 20-day exponential moving average (EMA), signalling a potential breakout. In this situation, the 21530 to 21470 range is a strong support, whereas the 21750 to 21630 range is the nearest support on the weekly time frame. The price is anticipated to stay above this level, paving the stage for a potential new record high for February, as the market anticipates a pullback move within the next 4-5 days.

Key Levels to Watch on February 20th, 2024

The Nifty index is expected to find support within the 22020 and 21940 range. On the other hand, the index's major resistance point for intraday trading is anticipated to be between 22280 and 22340 range. For the Bank Nifty, the intraday support levels are expected to be within the 46250 and 46000 range, with resistance between 46835 and 47150.

Stocks To Buy Today

Stocks to Buy or Sell Today: VLA Ambala (SEBI Regd. Research Analyst) recommends checking out four stocks on - February 20, 2024. According to her analysis, IRCON, IRFC, HITECH, and AEGISCHEM could provide ample growth opportunities to investors and traders.

IRCON

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 235 - Rs. 237
• TARGET 1: Rs. 245
• TARGET 2: Rs. 260
• TIME PERIOD: 25-30 Days
• STOP LOSS: Rs. 225

IRFC

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 161 - Rs. 163
• TARGET 1: Rs. 175
• TARGET 2: Rs. 190
• TIME PERIOD: 30-45 Days
• STOP LOSS: Rs. 149

HITECH

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 162 - Rs.163
• TARGET 1: Rs. 170
• TARGET 2: Rs. 175
• TIME PERIOD: 15-20 Days
• STOP LOSS: Rs.145

AEGISCHEM

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 445 - Rs. 475
• TARGET 1: Rs. 510
• TARGET 2: Rs. 550
• TARGET 3: Rs. 570
• TARGET 4: Rs. 620
• TIME PERIOD: INTRADAY
• STOP LOSS: Rs. 390

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.