Buy/Sell: 4 Swing Trading Stock Picks By VLA Ambala On Tuesday, 5th March

The candlestick pattern observed in the Nifty - Spinning Top suggests a potential pause before the next big move in the stock market. The benchmark index recorded another fresh all-time high at 22,440 and continued to trade in the narrow range during the day.

Notably, the day was characterized by mixed cues and market sentiments. Amid these, the insurance stocks recorded significant gains as IRDAI is anticipated to discuss the rationalization of the proposed surrender value in its upcoming board meeting.

Despite the odds, the initial days of the March series witnessed Dalal Street buzzing with high expectations fuelled by the fresh all-time high.

During the day on 4th March, both Nifty and Sensex recorded fresh all-time highs, displaying a strong lower price rejection. The rally was mostly supported by Reliance Industries, banking stocks, and metal stocks. Due to this, the Nifty's support range also moved to 22200- 22130. Besides higher valuation, I do not think any other reasons in the market could trigger profit booking for now, said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

In addition, the banking sectors are recovering as the US markets grow positive about rate cut announcements by the FED. This is likely to make the Banking Index go up further compared to the Nifty index.

Technical View of the Market

During the day, with a fresh all-time high at 22440, Nifty formed the 'Spinning Top Candlestick Pattern' at the daily timeframe and closed the day at very marginal points over the previous day. Notably, going below this pattern the Nifty will continue to display bearish sentiments, while above it the index will see a strong new rally.

The Nifty also reached 63 on the Relative Strength Index (RSI) daily and 74 on the weekly timeframe, both of which are still on the higher side. Ideally, the price should be correct here but investors are apparently seeing more potential in the Indian market compared to the rest. The benchmark index, currently reliant, seems to be gearing up for another upside. However, such a development could come if Nifty does not close below the 22000 range in this fiscal year, according to V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Moving Averages Price divergence has also been seen in Nifty at the daily timeframe and the index is currently trading nearly 1.20% below its 20-day Exponential Moving Average (EMA). The Bullish Cross Over MACD pattern also occurred in Nifty at a daily timeframe around the 22130 price range, underscoring this range as the key support level in the index.

Market View for 5 March 2024

Before the next big movement, the stock market is waiting for some fresh trigger events. Recently, the market was pumped with vigor after the GOI data published data about GDP. The upcoming election is the most focused event in the Indian stock market as investors await good governance ahead and a lot is going on around the domestic political side. Considering all the above-discussed technical and fundamental factors, the benchmark index may continue to trade within the 2% to 3% range this week. The trading range that we can expect during the same duration will be 1.5% to 3.35%. Key Support levels will be 22360 and 22300, and resistance will be at 22465 and 22530. The banking index, which outperformed intraday will now find key support at 47150/47000/46800, with 47650 and 48000 acting as major resistance, said the analyst.

Stocks to Check Out on March 5, 2024

STOCK 1: ABCAPITAL

• BUY: Rs. 187 to Rs. 189
• TARGET: Rs. 200/203/207/210/215/220/225/230
• SL: Rs. 179
• HOLDING: 20- 70 Days

STOCK 2: KEI

• BUY: Rs. 3270 to Rs. 3350
• TARGET- Rs. 3500/3560/3700/3800/4000
• SL: Rs. 3120
• HOLDING: 3-120 Days

STOCK 3: MEGASOFT

• BUY: Rs. 97/97.50
• TARGET: Rs. 100/105
• SL: Rs. 90
• Holding: 1-20 Days

STOCK 4: PNCINFRA

• Buy: Rs. 450/460
• TARGET: Rs. 480/510/560
• Stop L: Rs. 415
• Holding: 2-70 Days

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.