Trade Call: 2 Technical Stock Picks By Sumeet Bagadia On Wednesday, 28th Feb

Tuesday's strong global cues allowed Nifty to overcome its early weakness and rise steadily throughout the day to end at 22,198, up 76 points. The Nifty continued its strong trend and ended higher. After initially opening down, it bounced back and spent the majority of the day in bullish territory, closing at 22,198.35, up 0.34. With a gain of 0.83%, the India VIX closed the day at 15.73.

Market Outlook

"The markets ended the 26th February trade lower at 22,122.05 and formed a small bearish candle with a bearish divergence in RSI. The Index is oscillating in a range of 22,050-22,250 and breakout on either side will provide a proper direction. BankNifty is also witnessing a rangebound activity by oscillating in a range of 46,440-47,240. From the Auto segment, Bharat Forge looks good as the stock has given a breakout from a Symmetrical Triangle Formation. Investors should bring Railways stocks on the radar as many of them are at the cusp of a breakout. The IT sector is currently placed at the lower end of the congestion and a reversal trade is anticipated. It is too premature to say but it looks like the Metal sector is forming a bearish head and shoulder formation and in the case of a breakdown, one can expect a sharp correction," said Aditya Gaggar, Director of Progressive Shares.

Nifty Outlook

Rupak De, Senior Technical Analyst, LKP Securities said, "The Nifty has formed a bullish engulfing pattern after two days of weakness. Additionally, the trend remains positive as the index has consistently stayed above the near-term moving average. Overall, the bulls may continue to exert control as the index has closed above the previous consolidation high. A decisive move above 22,200 might propel the index for a decent rally towards 22,400 in the near term. Support on the lower end is situated at 22,000."

Bank Nifty Outlook

"The Bank Nifty has undergone a correction from its recent peak, reaching the 21-day Exponential Moving Average (21EMA) on the daily timeframe, where it has encountered immediate support. The battle between the bulls and bears may persist for a few more days or until a decisive breakout from the range of 46,500-47,000 on a closing basis. A significant decline below 46,500 could lead the index towards 45,500 in the short term. Conversely, a sustained trade above 47,000 might propel the index towards 47,700," Rupak De further added.

Stocks To Buy Today

As of Wednesday, February 28, PB Fintech and Havells India shares are seen attractively by Sumeet Bagadia, Executive Director of Choice Broking. The analyst has projected a buy objective for both stocks for today's trading session.

PB Fintech

Buy POLICYBZR in cash @ Rs 1135.45, stop-loss: Rs 1098, target: Rs 1212

POLICYBZR daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable higher high and higher low pattern, and the company's recent upward swing has effectively violated the neckline, establishing a new week high. This breakthrough indicates the possibility of a significant follow-through upward increase in the stock price.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The stock formed a strong bullish candle signifying a potential continuation of the uptrend following and the daily strength indicator RSI (14) is moving upwards and positioned above its reference line indicating a positive bias. Furthermore, POLICYBZR is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given the overall chart pattern, the analysis suggests a favourable long trading opportunity for investors.

Based on the above analysis we recommend buying POLICYBZR in cash at CMP of 1135.45 for the target of 1212 with a stop loss of 1098.

Havells India

Buy HAVELLS in cash @1469.15, stop-loss@1430, target @ 1535

HAVELLS is currently trading at Rs 1469.15. The stock has been consistently forming higher highs and higher lows, indicating a bullish trend. This trend is further supported by a notable increase in trading volume, suggesting strong market interest and the potential for further price increases.

Moreover, HAVELLS 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 further price increases. The Relative Strength Index (RSI) is at 71, indicating an uptrend in prices and confirming the current bullish momentum.

For investors considering entering the market, buying HAVELLS at Rs 1469.15 is recommended. To manage risk effectively, setting a stop-loss (SL) at Rs 1430 is advisable. This SL level acts as a protective measure, helping to minimize potential losses in case the market reverses its current trend.

In conclusion, HAVELLS presents an attractive opportunity for buyers, with a target price of Rs 1535. However, investors should proceed with caution and employ 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.