Buy/Sell: 4 Intraday Trade Calls By VLA Ambala On 7th Feb, Wednesday

The stock market displayed resilience in the last session by finding support at its previous day's low range. However, the prices traded within the last range. Notably, Nifty and Sensex registered a significant jump of nearly 0.70% each, but Reliance Industries and HDFC Bank declined and closed the day in the red on Tuesday.

Interestingly, Yes Bank recorded a remarkable surge of 13% in intraday trading and closed the day with a jump of more than 11%. This surge followed the news of RBI's nod to HDFC Bank to acquire a 9.5% stake in Yes Bank. On the other hand, IT giant TCS hit a record high during the day.

Stock Market Overview - In a Brief

The recently announced increase in the windfall tax continued to have a noticeable impact on the market, particularly on the oil industry, triggering major gains for leading players, such as BPCL and IOL. Notably, both BPCL and IOL rose nearly 5% in Intraday trading.

In terms of market trends, the Nifty exhibited bullish and bearish chart patterns at the daily timeframe, forming the 'Double Top' and 'Assessing Triangle' candlestick patterns. While the Double Top candlestick pattern hints at a reversal from an uptrend, the Assessing Triangle signals a sentiment of indecision prevailing in the stock market.

In my view, this likely indicates a potential for significant market momentum, with a possibility of a breakout. The market's closing price stood at 21,929, with the major support range shifting to 21590 - 21720 from the previous 21,410 - 21,220 range at the weekly timeframe. This particular shift underscores the changing dynamics in the stock market and at the same time is setting the stage for potential developments.

The FinTech stock Paytm faced initial pressure early in the day, reaching a low of approximately 395. However, the stock quickly recovered, showing resilience, and closed the day at 451. On the other hand, JioFin witnessed a 6% decline in intraday trading after Reliance Industries denied plans of acquiring stakes in Paytm. In these prevailing market conditions, I advise traders and investors to proceed with caution and pick quality stocks that could offer some stability. Additionally, diversification of the portfolio should be prioritized even for short-term investments to spread out the risks evenly.

Key Levels to Watch Out For on February 7, 2024

The Nifty's support range is anticipated to be anywhere between 21820 and 21730, while the major resistance point for intraday trading could be between 2050 and 22200. For Bank Nifty, the intraday support levels are expected to be between 45720 and 45650, and resistance between 45950 and 46200.

Stocks To Buy Today

Stocks to Buy or Sell Today: VLA Ambala (SEBI Regd. Research Analyst) has recommended that traders and investors watch out for these four stocks on - February 7, 2024. As per her observation, Ramcosys, SFL, RAILTEL, and HEG could offer substantial growth.

Ramco Systems

Buy - Rs. 335 to Rs. 340, Target: Rs. 365/380/400/410/450, and Stop loss - Rs. 310

Sheela Foam

Buy - Rs. 1140/1150, Target - Rs. 1250/1300/1350/1400/1500, and Stop loss - Rs. 1050

Railtel Corporation of India

Buy - Rs. 400/410, Target - Rs. 440/480/500/520/550, and Stop loss - Rs. 350

HEG

Buy - Rs. 1850, Target - Rs. 1940/1980/2100/2200, and Stop loss - Rs. 1720

Note: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behavior, and technical analysis.

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.