Trade Call: 2 Technical Stock Picks By Sumeet Bagadia On Tuesday, 27th Feb

Monday's market was erratic, with Nifty failing to break over 22,200 and ending at 22,122.05, a 0.41% loss. Nifty had a negative opening gap and had selling pressure during the first half of the session. However, it progressively recovered in the second half and closed at 22,122, down 91 points. On the other hand, the Sensex closed at 72,790.13, down 352.66 points, or 0.48 per cent. On the Nifty, the worst-performed stocks were Asian Paints, Hindalco Industries, Apollo Hospitals, Divis Labs, and Tech Mahindra; the top winners are Power Grid Corp., L&T, Adani Enterprises, SBI Life, and Tata Consumer.

Nifty Shows Sluggish Movement

According to Mr. Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities, "The Foreign Portfolio Investors (FPIs) Long-Short ratio fell marginally from 44.29% on 22nd February to 43.76% on 23rd February as the FPI's liquidated some long positions in Index futures after building long positions consecutively in the preceding five trading sessions."

"Strong call writing was observed at the 22,200 Strike in Nifty. Both the call & put writers battled out at 22,100 & 22,150 Strike leading to the Index moving in a range. Nifty is unlikely to move higher unless call writers exit from the 22,200 Strike. The downside support for Nifty is placed comfortably at 22,000 Strike," the analyst added.

"Bank Nifty traded sideways for major part of the day and closed 235 points lower at 46,577. Heavy call writing along with put writers exiting was observed at 47,000 Strike in Bank Nifty. The put writers, however, lead the call writers by a fair margin at the 46,500 Strike in the Index. The option activity at 46,500 Strike will provide cues about Bank Nifty's future direction," Ashwin Ramani stated.

Mr. Om Mehra, Technical Analyst, SAMCO Securities said, "In the Nifty 500 Index, the majority of stocks recorded declines, pointing towards a somewhat weakened market breadth. The day's closure saw Nifty forming a bearish candle with the 20-day Simple Moving Average acting as immediate support at 21,900. Meanwhile, the formidable upper Bollinger band is the immediate resistance at approximately 22,300 level."

"Additionally, 21,875 remains the level from which, if the Nifty falls, it may experience a sharp decline. It would be important to watch out for these levels in the upcoming sessions. Bank Nifty closed at 46,576.50 registering a 0.50% decline, marking the fourth consecutive fall. Private Banks showing weakness failed to support the index and an intraday pullback met selling pressure. Just above 20 and 50 Simple Moving Averages, Bank Nifty has immediate support at 46,000 levels. On the upside, the upper Bollinger band at 47,300 poses important resistance," he further added.

Stocks To Buy Today

As of Tuesday, February 27, Sumeet Bagadia, Executive Director of Choice Broking, has a favourable perspective on the shares of HFCL and Archean Chemical Industries. For today's trading session, the expert has predicted a buy level for both equities.

Archean Chemical Industries (ACI)

Buy ACI in cash @ Rs 822.75, stop-loss@ Rs 799, target @ Rs 865

ACI is currently trading at Rs 822.75 and is showing signs of a bullish trend, characterized by a bullish candle and significant trading volume. The breakout of the inverted head and shoulders pattern indicates growing market interest and potential further upward movement.

Furthermore, ACI is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for sustained upward price action. The Relative Strength Index (RSI) at 82 reinforces this sentiment, showing an upward trend and increased buying momentum.

For investors looking to capitalize on this trend, buying ACI at Rs 822.75 is recommended. To manage risk effectively, setting a stop-loss (SL) at Rs 799 is advisable. This SL level acts as a protective measure, safeguarding investments in the event of an unexpected market reversal.

In summary, ACI presents a promising buying opportunity, with a target price of Rs 865. However, investors should exercise caution and implement risk management strategies, including setting a stop-loss, to protect their investments.

HFCL

Buy HFCL in cash @ Rs 115.10, stop-loss: Rs @ 111.80, target @ Rs 123

HFCL, currently trading at Rs 115.10, is displaying a bullish trend characterized by higher highs and higher lows. This pattern, combined with substantial trading volume, indicates a growing interest in the market and the potential for further upward movement.

Moreover, HFCL is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, signalling the possibility of sustained upward price action. The Relative Strength Index (RSI) at 65.50 supports this trend, indicating an upward trajectory and increased buying momentum.

For investors considering a position, buying HFCL at Rs 115.10 is advisable. To manage risk effectively, setting a stop-loss (SL) at Rs 111.80 is recommended. This SL level serves as a protective measure, guarding against potential losses in the event of an unexpected market reversal.

In conclusion, HFCL presents an attractive buying opportunity, with a target price of Rs 123. However, investors should exercise caution and implement 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.