Swing Trading Guide: 3 Buy/Sell Trade Calls By VLA Ambala On Tuesday, 21st May

Mid stocks have been soaring, prompting the Nifty mid-cap index to touch a new all-time high in intraday. Currently, Nifty is trading just above its 20-day SMA at the weekly and daily timeframe, signalling a potential upward trend in the broader market.

"The index also formed a 'Piercing Line' candlestick pattern for the weekly timeframe with its RSI trading at 62. We are already in the middle of the May series, and the index has formed a 'Tweezer Top' pattern. However, such a pattern typically suggests a negative trend reversal, causing concern. Nifty completed a 'Hanging Man' candlestick formation in the April series, and judging by the price behavior, the index needs to retest the level. These developments on the technical indicators suggest a mixed sentiment in the market," commented V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Review of the Stock Market

"In the last six months, the benchmark index Nifty has delivered 3.5% gains. Based on this trend, the key levels for the next rally could be between 22650 and 22350. Analysis suggests that following this range, we could see another 4-7% rally in the market in the next 2 months. Though the current market is in the overbought zone, it does not appear to be weaker. For instance, dips are still being bought. On the other hand, as of Thursday, FIIs who are currently acting as net sellers have sold around Rs. 37,149.26 crores, whereas DII or the net buyers have prompted a net inflow of Rs. 32,416.80 crores for the same period. This is a red flag for the market and demands caution. In this situation, I recommend active market participants follow a neutral trading strategy and target a big range within 6 to 8 weeks. Additionally, they must remain invested in stocks that are low in debt, display growth potential, and have a dividend-paying record," the analyst further added.

Market View for 20 May 2024

"For the Nifty index, the key support levels for the next trading session will be around 22450 and 22380, whereas resistance will likely be noticed between 22520 and 22600. On the other hand, the Banking Index could find key support at 48000 and 47870, and witness 48200 and 48500, 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 stocks for swing trading on Tuesday, 21st May.

VRLLOG

• TRADE TITLE: SWING
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 580/600
• TARGET 1: Rs. 620
• TARGET 2: Rs. 650
• TARGET 3: Rs. 670
• TIME PERIOD: 1-6 DAYS
• STOP LOSS: Rs. 550

GNFC

• TRADE TITLE: SWING
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 665/670
• TARGET 1: Rs. Rs. 685
• TARGET 2: Rs. 690
• TARGET 3: Rs. 720
• TIME PERIOD: 1-12 Days
• STOP LOSS: Rs. 650

RAILTEL

• TRADE TITLE: SWING
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 410-415
• TARGET 1: Rs. Rs. 430
• TARGET 2: Rs. 440
• TARGET 3: Rs. 475
• TIME PERIOD: 1-10 Days
• STOP LOSS: Rs. 380

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.