Trade Call: 5 Stock Picks By VLA Ambala on Monday, 5th Feb

On Friday, February 2, 2024, Nifty achieved a new record high, reaching approximately 22,126, surpassing its previous peak of 22,124. However, the price could not sustain at this level and experienced a decline of nearly 300 points from the all-time high. Despite the selling pressure, Nifty closed positively. Notably, a bearish Candlestick pattern called "Shooting Star" formed at the daily timeframe, while a "Bullish Belt Hold" emerged at the weekly timeframe. The current price is trading at 21,853, with the RSI at 70 weekly and 58 daily. A flat opening might find support at the previous day's low, but failure to do so could lead to continued selling sentiment. Major support has shifted to the 21,410-21,220 range at the weekly timeframe.

The FinTech stock Paytm witnessed a significant 40% decline in just two days. Paytm is facing strong opposition due to strict actions from the RBI, causing its fundamentals to weaken. Those still holding the stock should consider planning their exit around the 400 range, identified as the last support.

Taking everything into consideration, the market closed in an "Extreme Fear Condition" with a Market Mood Index suggesting 39.96. India VIX closed at 14.70. A cautious approach is advised, and investors are recommended to pick quality and stable stocks. Diversification in the portfolio, even for short-term investments, is emphasized.

In light of high inflation, the Federal Reserve has maintained steady interest rates, but there is a possibility of a rate reduction in the next financial year. The FOMC policy makers have kept the benchmark interest rate between 5.25% and 5.5%. The final announcement from the FOMC about no change in interest rates negatively impacted banking stocks. Nifty Bank fell nearly 2% from its day high levels, closing at minus 0.47% compared to the previous day.

Key Levels to Watch on February 5, 2024:

NIFTY

• Support: 21,740 and 21,600
• Resistance: 21,900 and 21,980

BANK NIFTY

• Support: 45,700 and 45,350
• Resistance: 45,950 and 46,180

Stocks to Watch for Intraday and Swing Trading on February 5, 2024:

1. JINDALSTEL

• Buy: 775
• Target: 810 to 900
• SL: 720

2. TATAMETALI

• Buy: 1090
• Target: 1050 to 1250
• SL: 1000

3. TFCILTD

• Buy: 1090
• Target: 1050 to 1250
• SL: 1000

4. URSUGAR

• Buy: 15
• Target: 17 to 40
• SL: 12

5. MILLENNIUM

• Buy: 2.20
• Target: 2.50 to 3.15
• SL: 1.85

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.