Swing Trading Guide: 2 Stock Recommendations By VLA Ambala On Friday, 10th May

After reaching a historic peak, Nifty has retreated by nearly 4%, signalling the likelihood of further bearish movements. This downturn is characterized by significant technical patterns suggesting an extended bearish phase. Mid Caps, however, have shown resilience and have not yet followed the primary index's downward trend.

Nifty Prediction

"Nifty has exhibited bearish indicators, completing an "Evening Star Candlestick Pattern" on the weekly timeframe and a bearish Marubozu on the daily chart. Coupled with a "double top" formation at its lifetime high, these patterns indicate that the bearish mood may persist for some time," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Key Levels to Watch:

Nifty:

Support: 21820, 21700
Resistance: 22050, 22180

Bank Nifty:

Support: 47150, 47000
Resistance: 47600, 47730

Market Outlook

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said, "Nifty continued its decline for the fifth consecutive day to close below the 22000 zone, given nervousness ahead of Lok Sabha Elections outcome. The index plunged 345 points (-1.6%) to close at 21958 levels. Broader market fell even more sharply and was down 2-3%.

Volatility Index, India VIX spiked ~7% to above 18 levels. Barring Auto (+0.8%), all other sectors ended in red with Oil & Gas, Metals, Realty, Pharma & Financials decline between 2-3%. On the Global front, cautiousness ahead of BOE's policy statement and hawkish statements from a few Fed officials kept markets sidelined. Nifty nosedived 800 points or 3.5% and Sensex dropped 2400 points or 3.3% in the five trading sessions. India Vix or Volatility Index climbed up over 80% from 10 to above 18 level just trading sessions.

Continued FII selling and fear of not so favorable election outcome have dented market sentiments. With a voter turnout ratio (65.68%) slightly lower than 2019 for the same seats (except Assam), investors have turned nervous about BJP's expected seat count. We expect this volatility to continue in the near term in the absence of any major positive trigger. Now till Nifty holds below 22000 zones, weakness could be seen towards 21700."

Stocks To Buy Today

V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) has recommended the below intraday stocks picks to buy or sell on Friday, 10th May.

• Trade Title: Intraday
• Scrip Name: JINDALSAW
• Trade Type: Sell
• Entry Price Range: 548/546
• Targets:
• Target 1: 540
• Target 2: 535
• Target 3: 528
• Target 4: 520
• Time Period: Intraday
• Stop Loss: 557

Swing Trade:

• Trade Title: Swing
• Scrip Name: BHARATFORG
• Trade Type: Buy
• Entry Price Range: 1330/1360
• Targets:
• Target 1: 1340
• Target 2: 1400
• Target 3: 1450
• Target 4: 1500
• Time Period: 10 to 60 Days
• Stop Loss: 1290

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.