Trade Call: 2 Stock Picks By Sumeet Bagadia of Choice Broking On Thursday - March 28

Wednesday saw a robust comeback on the Indian stock market, which had suffered declines on Tuesday. The Nifty climbed by 119 points to close at 22,124, while the Sensex had an impressive rise of 526 points to close at 72,996. The upward trend was also seen in the Nifty Bank index, which climbed by 186 points to reach 46,786. The Midcap Index closed at 47,837, up 30 points from the previous close. Bulls felt at ease when the fear gauge, the India VIX, dropped by 0.92% to 12.70 from 12.82 the previous day.

Nifty Outlook

"Heavy put writing (Bulls' entry) was observed at the 22,000 & 22,100 Strike in Nifty. Call writers (bears) made an exit from the 22,000 Strike, which aided the strong Intraday movement in the Index. The put writers have further strengthened their position at the 22,100 Strike. This level is likely to act as a strong support for Nifty. The option activity at the 22,200 Strike will provide cues about Nifty's Intraday direction ahead of the monthly expiry on Thursday," said Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.

"Technically, Nifty has formed a bullish candlestick on the daily timeframe. The RSI remains neutral around the 50 level. Sectors are dynamically contributing on a rotational basis while market breadth has improved this week. Volume profile indicates support is placed at 21,950 and resistance at 22,220 followed by the 21,300 level," said Om Mehra, Technical Analyst, SAMCO Securities.

Bank Nifty Outlook

"Bank Nifty opened with a gap up and rose steadily, making an Intraday high of 46,947 before profit booking dragged the Index down to 46,786, closing 186 points higher. The call writers (Bears) built significant positions at the 46,800 Strike in Bank Nifty. This led to profit booking in the Index. Bank Nifty has made a shooting star candle on the daily chart. This candle pattern is usually considered to be a bearish reversal candle. The option activity at the 47,000 Strike will provide cues about Bank Nifty's future direction," added Ashwin Ramani.

"Bank Nifty closed the session at 46,785.95 after gaining 0.40% and has formed a bullish candle on the daily chart. The Index rebound from the 20-Day moving average (DMA) but faced resistance around the 47,000 zone. Fibonacci retracement reveals support at 46,350 levels and resistance at 47,300 levels," added Om Mehra.

Stocks To Buy Today

Choice Broking's executive director Sumeet Bagadia recommended buying or selling two stocks on March 28 - Thursday.

Voltamp Transformers

Buy VOLTAMP in cash @ Rs 9698, stop-loss @ Rs 9411, target @ Rs 10250

VOLTAMP is exhibiting strong bullish momentum, currently trading at an all-time high of 9799.9 levels. The recent breakout above the crucial resistance at 9150 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, VOLTAMP is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 68.95 levels.

For traders, keeping an eye on the strong support near 9411 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, VOLTAMP current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying VOLTAMP and the CMP of 9698 with a stop loss of 9411 for the target of 10250.

Godrej Consumer Products

Buy GODREJCP in cash @ Rs 1235.05, stop-loss: Rs 1190, target: Rs 1310

Godrej Consumer Products Limited (GODREJCP) appears to have exhibited a notable resurgence in its stock price. It recently rebounded from a support level at 1190 which is also close to its 50 Day EMA levels and is presently trading at around 1235.05. The fact that the stock is trading above all the important Exponential Moving Averages (EMA) suggests that there's significant strength.

Additionally, the Relative Strength Index (RSI) indicator, which hovers around the 52.52 level, indicates a balanced market sentiment, potentially poised for an upward move.

There's a minor resistance level at 1260, which the stock needs to breach. If it successfully closes above this level, it may have the potential to advance towards 1310 and beyond.

Based on the above analysis we recommend buying GODREJCP at CMP of 1235.05 with a SL of 1190 for the target of 1310.

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.