Trade Call: 2 Stock Picks By Sumeet Bagadia On Monday, 4th March

Sensex and Nifty reached all-time highs during the two-hour session on Saturday, March 2, during the NSE and BSE's special live trading session. The BSE Sensex experienced a 1,305.85 points or 1.80% gain finishing at 73,806 points, while the NSE Nifty had a 395.60 points or (1.80%) gain and concluded at 22,378 on Saturday. The top gainers among the Sensex companies were Asian Paints, Wipro, Larsen & Toubro, Asian Steel, and ITC. NTPC, UltraTech Cement, Kotak Mahindra Bank, and Mahindra & Mahindra were some of the top losers.

Falling VIX Comforts Bulls in Nifty Futures as it Eyes 22.5K

According to Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities Nifty opened with a gap up and traded sideways in the special trading session conducted by the Stock Exchanges on 2nd March, closing 40 points higher at 22,378. The India VIX known as the fear indicator, fell 1.59% on Intraday basis and closed at 14.99, giving comfort to the bulls. Heavy put writing was observed at the 22,000, 22,100 & 22,200 Strike in Nifty. Nifty was facing strong resistance around the 22,250 levels since 21st February, 2024. The put writers (Bulls), finally, dethroned the call writers (Bears) from the 22,200 Strike, which led to a sharp move upside. The 22,300 Strike saw significant put writing too. The call writers have sizeable positions at 22,400 strike and hence the option activity at this strike will provide cues about Nifty's future direction.

Bank Nifty closed flat at 47,287. Heavy put writing was observed at the 46,500 & 47,000 Strike in Bank Nifty. The bulls dethroned the bears from the maximum call open interest strike of 47,000 in the Index. The option activity at the 47,400 Strike followed by an Intraday breakout above this level can drive a fresh leg of rally in Bank Nifty, said Ashwin Ramani.

Market Outlook

Om Mehra, Technical Analyst, SAMCO Securities said, "Nifty continued its upward trend, rising 0.75% in the previous week and reaching a new high of 22,419.55. The Nifty rose by 1.13% month on month in February. The Index soared last Friday, fuelled by India's 8.4% Q3 GDP growth, which triggered the sideways market followed by a special trading session on Saturday. Technically, the Nifty's primary trend remains positive, with the third consecutive weekly gain. Despite Nifty IT underperforming, the overall sectors have demonstrated rotational participation. However, mid and small-cap stocks have remained subdued, prompting caution against overexposure in them."

"The RSI is firmly at 61 indicating a balanced market. Support is established at 22,100 levels while resistance is placed at 22,550 followed by 22,700. Bank Nifty concluded at 47,286.90 advancing by 1.04 % last week. The MACD indicators maintained a neutral to positive stance. The Index is trading above the 20-day SMA. A critical resistance level remains at 47,800 for next week, if broken, which might initiate a next upside rally. The volume profile analysis identified 46,200 as a strong support level for the upcoming trading sessions," Om Mehra further added.

Stocks To Buy Today

On Monday, March 4th, Choice Broking's Executive Director Sumeet Bagadia recommended buying or selling two stocks. Here is the complete technical analysis of Epigral and Great Eastern Shipping Company.

Epigral

Buy EPIGRAL in cash @ Rs 1206.45, stop-loss: Rs 1170, target: Rs 1286

EPIGRAL is currently priced at Rs 1206.45, having recently broken above the previous resistance at Rs 1170 following a period of sideways movement. This breakout has established a pattern of higher highs and higher lows, signalling a shift to a bullish trend.

Additionally, EPIGRAL is trading above key Exponential Moving Averages (EMAs) - the 20-day, 50-day, 100-day, and 200-day EMAs. This indicates a strong positive momentum, suggesting potential for further price appreciation. The Relative Strength Index (RSI) is at 64, supporting the uptrend and indicating increased buying pressure.
For investors looking to enter the market, buying EPIGRAL at Rs 1206.45 is a viable option. To manage risk effectively, consider setting a stop-loss (SL) at Rs 1170. This SL level serves as a protective measure, limiting potential losses in case of a market reversal.

In conclusion, EPIGRAL presents an attractive buying opportunity, with a target price of Rs 1286. However, it is important for investors to approach with caution and implement risk management strategies, such as setting a stop-loss, to safeguard their investments.

Great Eastern Shipping Company

Buy GESHIP in cash @ Rs 1004.55, stop-loss @ 975, target @1060

GESHIP is currently trading at Rs 1004.55. It has recently formed a bullish pattern known as a double bottom on the daily chart, resulting in a price increase. Additionally, the current candlestick pattern, a dragonfly doji, is also bullish signal, suggesting a potential continuation of the upward trend.

Moreover, GESHIP is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This indicates a strong positive momentum in the stock, hinting at the possibility of further price appreciation. The Relative Strength Index (RSI) is at 61, supporting the uptrend and indicating an increase in buying pressure.

For investors looking to enter the market, buying GESHIP at Rs 1004.55 could be a favourable decision. It is advisable to set a stop-loss (SL) at Rs 975 to manage risk effectively. This SL level serves as a protective measure against potential losses in case the market reverses its current trend.

In conclusion, GESHIP presents an appealing buying opportunity, with a target price of Rs 1060. However, investors should proceed with caution and employ risk management strategies, such as setting a stop-loss, to safeguard their investments.

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.