Buy/Sell: 4 Trade Calls By VLA Ambala On Tuesday, 13th Feb

The Indian stock market is experiencing significant selling pressure, with the Nifty breaching its major support level at the 21800 to 21730 range. The Nifty is currently trading just 2.65% above its 50-day Exponential Moving Average (EMA), which was at 14 on the weekly timeframe. Judging by the prevailing market momentum, the existing gap is likely to be filled soon based on the price action and the historical Nifty performance.

The Nifty closed slightly below the index's January first-week closing, erasing the significant gains it recorded earlier in the same month. Amid these developments, the index encountered resistance around its 21850 range.
Notably, there are higher chances of the benchmark index plunging by 2-2.5% in the next two weeks, with the maximum trading range to be around 4% from the current price for this month.

Additionally, investor sentiment is wavering fast amid several political uncertainties, as a stable government is deemed to lead to an ideal environment for massive investing. Notably, IT and Pharma were the only sectors that managed to close the day in the green, while PSU Banking and media sectors faced a substantial decline.

Technical Overview of the Stock Market

The India VIX surged and closed the day above the 16 mark, signalling a significant level of volatility in the stock market. Even the Nifty formed a bearish candlestick and closed the day below its 20-day Exponential Moving Average (EMA) at 14. This level can be seen as a technical breakdown that indicates a weakening of the short-term upward trend. Such a situation might become a concern for some traders and investors, adding to the selling pressure and downward trend in the near term.

Even the NSE index formed a bearish dual candlestick pattern - "Bearish Engulfing" at the daily timeframe. This candlestick pattern is often seen as a warning sign indicating a potential trend reversal. Usually, it suggests that the previous upward momentum has started to weaken, and sellers are gaining more control over the market. This is why I believe the selling pressure will continue to persist even this week. In such a situation, I think the next support levels for the Nifty would be around the 21320 to 21400 range, said VLA Ambala of SMT.

Key Levels to Watch on February 13th, 2024

The Nifty's support range could be between the 21560 and 21450 levels. On the other hand, the index's major resistance point for intraday trading might be between 21700 and 21790. Coming to the Bank Nifty, the intraday support levels are anticipated to be around the 44570 and 44000, with resistance somewhere between the 45120 and 45350 levels.

Stocks To Buy Today

Stocks to Buy or Sell Today: VLA Ambala (SEBI Regd. Research Analyst) has recommended that traders and investors check out these four stocks on - February 13, 2024. According to her analysis and observation, the four stocks - CARBORUNIV, KALYANKJIL, MAZDA, and BALPHARMA, can offer significant growth and profit-making opportunities.

Carborundum Universal

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 1155 - Rs. 1160
• TARGETS: Rs. 1200/1235/1280/1320/1350/1400
• TIME PERIOD: 15-180 Days
• STOP LOSS: Rs. 1030

Kalyan Jewellers India

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 365 - Rs. 367
• TARGETS: Rs. 410/425/440
• TIME PERIOD: 15-50 Days
• STOP LOSS: Rs. 334

MAZDA

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 1540
• TARGETS: Rs. 1650/1680/1750/1800
• TIME PERIOD: 45- 60 Days
• STOP LOSS: Rs. 1420

Bal Pharma

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 123
• TARGETS: Rs. 135/140/150
• TIME PERIOD: 7-60 DAYS
• STOP LOSS: Rs. 108

Note: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behaviour, 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.