Swing Trading Guide: 2 Stock Recommendations By VLA Ambala On Monday, 6th May

After a 20% plunge in the monthly closing VIX, it managed to surge nearly 50% in the next 6 days. In intraday INDIA VIX closed at 14.84, suggesting a sense of volatility in the market.

In response to the prevailing sense of volatility, the Sensex settled at 764 points or 1.02% down at the 73,846 level on Friday, and the Nifty was down 191 points or 0.85% at 22,456. The market breadth also inclined towards the negative territory, with about 1,053 shares advancing, 2,197 declining, and only 79 remaining unchanged.

Market Outlook

"During the session, the current price of the Nifty was found to be overpriced when analyzed across the daily, weekly, and monthly timeframe. Previously, we had suggested the probability of Nifty chasing a fresh all-time high after a pullback of 3.5-5%, and experiencing a profit booking session. Judging by the current market momentum, the price is moving exactly as anticipated. At present, the major resistance point for Nifty stands at 22800. Below this level, I recommend individuals follow a "Sell on Rise" short-term trading strategy to make the most of their bet," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

"The market now prepares to divert its attention to the US job market report announcement, which is due on May 3, to gain some sense of direction for the next sessions. It is believed the data could paint a positive picture, highlighting the current strength of the US labor market. Besides this data, the broader market expects US non-farm payroll to slow down in April but emerge above the pre-pandemic levels," the analyst commented.

Nifty & Bank Nifty Outlook

"For the Nifty index, the key support levels for the next trading session will be around 22340 and 22200, whereas resistance will likely be noticed between 22450 and 22550. On the other hand, the Banking Index could find key support at 48800/48550/48200, and witness 48950 and 49200, acting as their major resistance points," VLA Ambala predicted.

Stocks To Buy Today

V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) has recommended the below swing trading stocks to buy or sell on Monday, 6th May.

HINDZINC

• TRADE TITLE: INTRADAY
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 450 - 470
• TARGET 1: Rs. 495
• TARGET 2: Rs. 520
• TIME PERIOD: 10 Days
• STOP LOSS: Rs. 430

SARDAEN

• TRADE TITLE: INTRADAY
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 250-255
• TARGET 1: Rs. 270
• TARGET 2: Rs. 285
• TIME PERIOD: 1-10 Days
• STOP LOSS: Rs. 232

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.