Trade Call: 2 Technical Stock Picks By Sumeet Bagadia On Thursday, 29th Feb

Prior to the announcement of India's Q3 GDP figures and the FNO monthly expiration on Thursday, the Indian market fell. and failed to continue the upward trajectory of Tuesday's gain. On Wednesday, the Nifty dropped 247 points, or 1.11 per cent, to close at 21,951.15. Every sector saw a negative closing, signifying a strong sell-off across. The fear gauge, or India VIX, wrapped up at 16.33 after rising 3.83% intraday. The broader market witnessed a dramatic 2% decline. Core PCE data and an early study of the US Q4 GDP are expected to keep traders busy, which might lead to more corrections ahead during the week.

Nifty Outlook

"On the daily charts we can observe that the Nifty on account of the sharp decline has reached the 20 day moving average (21944). The broad range of 21800 - 22300 still has not been breached. The daily as well as hourly momentum indicators have a negative crossover which is a sell signal, however, prices are still in a range and hence a decisive breach below 21875 i.e. the previous swing low is required to validate the change of trend. The Index is around the crucial support zone 21900 which is likely to act as a make-or-break level from short term perspective." said Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas.

Rupak De, Senior Technical Analyst, LKP Securities stated, "Nifty underwent a sharp correction during the day amid a strong sell-off. The index dropped below the 22,000 mark, indicating a growing weakness. Nevertheless, it managed to close just above the 21EMA on the daily timeframe. Observing the daily chart, the index has been navigating within a rising channel. A decline below 21,950 could potentially trigger a correction towards 21,800 in the near term. Conversely, a sustained trade above 21,950 might spur a recovery in the index towards 22,100."

Bank Nifty Outlook

"Bank Nifty has decisively breached the 20- and 40-day moving averages (46125 - 46281) and closed below it which is a sign of weakness. It is very close to its crucial support zone of 45700 - 45675 which coincides with the 61.82% Fibonacci retracement level of the previous rise from 44634 - 47359. Thus, bank nifty is also approaching a crucial support zone from short term perspective," Jatin Gedia stated.

Rupak De, Senior Technical Analyst at LKP Securities said, "Bears pulled Bank Nifty below 46,000 as the bulls were unable to shield the index from dropping below 46,500. Wednesday's selling pressure has pushed the index below the crucial short-term moving average as well. The sentiment appears negative, with the index potentially moving towards 45,700/45,300 in the near term. Resistance is positioned at 46,100."

Stocks To Buy Today

On Thursday, February 29, Sumeet Bagadia, Executive Director of Choice Broking, finds Aegis Logistics and TCS shares appealing for intraday trading. For today's trading session, the analyst indicated a buy call for both stocks.

TCS

Buy TCS in cash @ Rs 4118.95, stop-loss: Rs 3980, target: Rs 4360

Tata Consultancy Services (TCS) at its current trading level of 4118.95 displays a robust technical foundation. The chart analysis reveals a formidable support base at 3980, situated just below the 20-day Exponential Moving Average (EMA). This support level indicates significant buying interest, suggesting a solid platform for potential upward movements. The Relative Strength Index (RSI) at 59.38 signifies positive momentum, indicating there is room for further growth without being overbought.

TCS maintains its strength by trading above all key moving averages, affirming the continuity of its positive trend. This technical configuration suggests a promising outlook, with potential for TCS to not only sustain its current momentum but potentially extend gains. Investors and traders may find it beneficial to monitor these support and resistance levels for informed decision-making in their trading strategies.

Considering the technical factors and market conditions, it appears to be a favourable opportunity to buy TCS at the CMP of 4118.95 levels. The target for this trade would be 4360, with a recommended stop loss set at 3980.

Aegis Logistics

Buy AEGISCHEM in cash @ Rs 443.50, stop-loss: Rs 430, target: Rs 466

AEGISCHEM, currently trading at Rs 443.50, has been consistently forming higher highs and higher lows, indicating a bullish trend. This pattern is further supported by a notable increase in trading volume, suggesting strong market interest and the potential for further price increases.

Moreover, AEGISCHEM is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests that the stock has strong positive momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) is at 60, indicating an uptrend in prices and confirming the current bullish momentum.

Based on this analysis, buying AEGISCHEM at the current market price of Rs 443.50 is recommended. To manage risk effectively, setting a stop-loss (SL) at Rs 430 is advisable. This SL level acts as a protective measure, helping to minimize potential losses in case the market reverses its current trend. The target (TGT) price is set at Rs 466, considering the current trend and potential upside movement.

In conclusion, AEGISCHEM presents a strong buying opportunity, supported by technical indicators such as EMAs and RSI. However, investors should exercise caution and implement risk management strategies, such as setting a stop-loss, to protect 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.