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

On February 29th, the GOI released the latest GDP quarterly data, which suggests that the Indian economy has been resilient, recording a 7.6% GDP growth in FY23-24. The growth surpasses the GDP growth of 7% recorded in FY2022-23. The fresh data has triggered a sense of excitement in the market.

However, the FED fiscal deficit remains a concern, with the deficit touching Rs.11.02 lakh crore moving closer to the Rs.17.34 lakh crore limit. Notably, the target was revised to a GDP of 5.8% from the initial 5.9% estimate announced in the 2023 Budget. In just the first month of 2024, the fiscal deficit rose by Rs.1.2 lakh crore after the quarterly hike. Following this, the deficit also widened to 63.3% of the budget target.

Eight major sectors - Coal, Crude, Oil, Natural Gas, Petroleum Refinery Products, Fertilizers, Steel, Cement, and Electricity witnessed a slowdown in the growth, recording a 15-month low at 3.6% in January 2024. However, on the first day of the March series, both Nifty and Sensex recorded new all-time highs. This rally was supported significantly by Reliance Industries, Banking, and Metal stocks. The Nifty index also observed a shift in its current support range, which moved to 21950-21900 from 21830-21760.

Apart from a higher valuation, there is no other reason to expect a profit booking in the stock market. Meanwhile, the banking sector is recovering as the US markets await the FED's rate cut announcements in the upcoming weeks. For March 4, 2024 - the crucial levels for Nifty will be 22250 and 22100 as support, whereas, 22400 and 22490 will likely emerge as resistance points.

Technical View of the Market

With a fresh all-time high at 22419, the Nifty formed a Bearish Shooting Star candlestick pattern at the daily timeframe, with the day's open emerging as the day's low. Notably, leveling this pattern, the Nifty will continue to observe bearish sentiments while going above it will be welcomed with an upside rally.

The Nifty index also reached 61 Relative Strength Index (RSI) at the daily and 73 at the weekly RSI, which continues to remain on the higher side. Ideally, the price should witness correction here but with the bulls seeing significant potential in the Indian market, the benchmark index continues to be reliant and prepares for another upside, which could occur only if the Nifty does not close below the 22000 range in this FY.

Notably, price divergence is being recorded as Nifty trades nearly 3% below its 20-week Exponential Moving Average (EMA). The Bearish Cross Down MACD in Nifty at the daily timeframe at the 22050 price range remains a key support level in the index.

Market View for 4 March 2024

The market sentiment witnessed a fresh vigor after the GOI published the data about GDP growth. Regardless, the market is gradually paying more attention to upcoming events, including FED rate hike announcements and domestic elections.

With the markets increasingly anticipating good governance ahead, the prices will soon reflect the sentiment. Considering these, it can be anticipated that the benchmark index may continue to trade within the 2-3% range in the upcoming week. The range that we are likely to trade in during the same duration will be 2% to 3.35%. During the same period, Nifty's key support levels will be at 22220- 22310, and resistance will be seen within 22450 to 22580 levels.

The banking index has outperformed intraday. Going ahead 47150, 47000 and 46800 will work as key support targets for Bank Nifty, and 47550 and 47830 are going to act as major resistance.

MEDIA, METAL, and REALTY sectors will continue to look promising in the next 1-2 days compared to other sectors, said 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 to buy or sell the below listed stocks on Monday, 4th March.

BAJFINANCE

• TRADE TITLE: SWING TRADE
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 6570 - Rs. 6580
• TARGET 1: Rs. 6650
• TARGET 2: Rs. 6750
• TIME PERIOD: 25-70 Days
• STOP LOSS: Rs. 6430
• STOP LOSS: Rs. 830

CENTENKA

• TRADE TITLE: SWING TRADE
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 450
• TARGET 1: Rs. 460
• TARGET 2: Rs. 475
• TIME PERIOD: 5-20 Days
• STOP LOSS: Rs. 435

IFBAGRO

• TRADE TITLE: SWING TRADE
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 470
• TARGET 1: Rs. 490
• TARGET 2: Rs. 510
• TIME PERIOD: 5-50 Days
• STOP LOSS: Rs. 455

KALYANKJIL

• TRADE TITLE: SWING TRADE
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 400
• TARGET 1: Rs. 425
• TARGET 2: Rs. 460
• TIME PERIOD: 5-80 Days
• STOP LOSS: Rs. 365

ESG

• TRADE TITLE: SWING TRADE
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 37.50
• TARGET 1: Rs. 39
• TARGET 2: Rs. 42
• TIME PERIOD: 5-30 Days
• STOP LOSS: Rs. 35

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.