Swing Trading Guide: 3 Trade Calls By VLA Ambala On Tuesday, 16th April

The rising tension between Iran and Israel has sent massive ripples across the global market sentiment, as noticed during Monday morning's early trading session when Sensex and Nifty 50 fell by over 1%. During the day, the banking index slipped by 1.63% and Nifty concluded at 1.10%. Our stock market is already in the overbought territory, which means any further triggers, especially the rising geopolitical tension could increase investors' worries and prompt a profit-booking frenzy in the upcoming days. If the ongoing conflict worsens or continues for an extended period, we will notice a quick shift towards government-backed securities and gold, which is currently at its record high.

Review of the Stock Market

Since Iran is OPEC's third-largest crude oil producer, any further escalations of the conflict will directly hamper the global crude oil supply, creating demand and supply issues as seen during the peak Russia-Ukraine war. As India imports nearly 80% of its crude oil, we are likely to witness a sharp jump in its prices. Needless to say, such a surge will worsen the prevailing inflation and hamper the government's ongoing efforts to control it. Such gaps will further lower the likelihood of any rate cuts and even hamper stock valuation, affecting traders and investors. In fact, if the situation deteriorates, the FED rates could remain unchanged in Q2, dashing the hopes of many, said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Such a stagnant momentum will likely hamper international trade and increase the pressure on Indian currency and the inflow of foreign capital into the Indian market. Regardless, the current bull run of the market could project dips as a lucrative dip buying opportunity, paving the way for those to tap into them who had missed out on previous opportunities, she further added.

Investors are eagerly waiting for the January-March earnings season to begin, as they expect a lot of shuffling to take place in the market following the company earnings release. We are almost 2.25% away from the record high and should start preparing for a potential pullback move that could continue by 3% to 5% as we had suggested last week. This potential dip should be considered as a "Dip Buying opportunity" VLA Ambala stated.

Market View for 16 April 2024

For the Nifty index, the key support levels for the next trading session will be around 22210/22100, whereas resistance will likely be noticed at 22350 and 22435. On the other hand, the banking index could find key support at 48200 and 48000, with 48400 and 48520 acting as their major resistance points., said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Stocks To Buy Today

V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) has recommended 3 stocks to buy or sell on a swing trading basis on Tuesday, 16th April.

BHARATFORG

• TRADE TITLE: SWING
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 1170
• TARGET 1: Rs. 1190
• TARGET 2: Rs. 1210
• TARGET 3: Rs. 1230
• TARGET 4: Rs. 1250
• TIME PERIOD: 1-20 Days
• STOP LOSS: Rs. 1145

SWSOLAR

• TRADE TITLE: Intraday
• TRADE TYPE: SELL
• ENTRY PRICE RANGE: Rs. 487
• TARGET 1: Rs. 477
• TARGET 2: Rs. 460
• TARGET 3: Rs. 455
• TIME PERIOD: 1 Day
• STOP LOSS: Rs. 505

ADANIGREEN

• TRADE TITLE: Intraday
• TRADE TYPE: SELL
• ENTRY PRICE RANGE: Rs. 1796
• TARGET 1: Rs. 1740
• TARGET 2: Rs. 1720
• TARGET 3: Rs. 1690
• TIME PERIOD: 1 Day
• STOP LOSS: Rs. 1850

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.