Trade Call: 2 Stock Picks By Sumeet Bagadia On Tuesday, 5th March

Monday saw the Nifty maintain its momentum, ending the day 0.12% higher at 22,405.60 due to the robust global market. The Indian index continues to reach record territory as a result of global indices that were trading solid to mixed. Nifty experienced positive trading throughout the day, reaching new highs and wrapping up with gains of 27 points at 22,405 while the Sensex, which had opened at 73,903.09, gained ground during the day to reach a high of 73,990.13 before giving up some of the gains to close slightly higher by 66.14 points, or 0.09%, at 73,872.29.

Market Outlook

Mr. Om Mehra, Technical Analyst, SAMCO Securities said, "Technically, the Nifty has maintained its Higher Highs and Higher Lows trajectory. All short-term moving averages, particularly the 20-day moving average, served as immediate support. The Bollinger Bands are expanding in the daily chart, with 22,500 being a psychological level that the Nifty may attempt to test. Strong support levels are identified at 22,200, followed by 22,500 and 22,700.

Bank Nifty has started to ascend following a strong move on Friday, concluding at 47,456.10, marking a 0.34% increase. The RSI ended at 61 levels, indicating the positive momentum remains intact for the index. Private banking stocks are exhibiting strong support after a decent correction. The index has immediate support at the 47,000 level with resistance around the 48,000-48,200 zone."

Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities said, "The Nifty commenced the week with a consolidated move, resulting in the formation of a Doji candle on the daily chart. Despite this, the overall sentiment remains bullish. A decisive break above 22,440 is anticipated to intensify the momentum, targeting 22,700 on the upside. On the downside, support is established at 22,200, presenting buying opportunities on any pullbacks towards this level."

Bank Nifty Outlook

"The Bank Nifty index demonstrated resilience by maintaining strength and holding above the crucial support level of 47,000, where substantial open interest is concentrated on the put side. The index remains in a buy mode, with a potential to surpass its all-time high levels in the near term. Immediate resistance is positioned at 47,500, and a breakthrough above this level is anticipated to accelerate the momentum towards new lifetime highs," stated Kunal Shah.

Stocks To Buy Today

Choice Broking's Executive Director Sumeet Bagadia made a recommendation on Tuesday, March 5th, regarding buying or selling two stocks. The full technical analysis of Max Financial Services and Indraprastha Gas can be seen here.

Indraprastha Gas

Buy IGL in cash @ Rs 446.60, stop-loss: Rs 433, target: Rs 471

IGL is currently trading at Rs 446.60 and is exhibiting a symmetrical triangle pattern, a bullish chart pattern. Additionally, the stock is displaying a bullish candle near the breakout point, adding to the bullish setup for IGL.

Furthermore, IGL is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This indicates a strong positive momentum in the stock, suggesting the potential for further price appreciation. The Relative Strength Index (RSI) is at 58, supporting the uptrend and indicating an increase in buying pressure.

For investors looking to enter the market, buying IGL at Rs 446.60 is recommended. To manage risk effectively, setting a stop-loss (SL) at Rs 433 is advisable. This SL level serves as a protective measure against potential losses in case the market reverses its current trend.

In conclusion, IGL presents a compelling buying opportunity, with a target price of Rs 471. However, investors should exercise caution and employ risk management strategies, such as setting a stop-loss, to protect their investments.

Max Financial Services

Buy MFSL in cash @ Rs 1000, stop-loss: Rs 956, target: Rs 1080

MFSL is currently trading at Rs 1000, exhibiting a notable price breakout of a rounding bottom pattern, accompanied by robust volume, indicating a bullish momentum in the stock. Furthermore, the stock is trading above crucial Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, reinforcing its bullish stance and suggesting the potential for further upward price movement.

The Relative Strength Index (RSI) is presently at 62.2 and is on an upward trajectory, signaling a growing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has demonstrated a positive crossover from the oversold region, adding to the bullish sentiment. This confluence of technical indicators suggests that MFSL may have the potential to reach a target price of Rs 1080 in the near term.

To effectively manage risk, it is advisable to implement a stop-loss (SL) at Rs 956 to safeguard investments in the event of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, MFSL appears to present an attractive buying opportunity for those targeting a Rs 1080 price objective, provided that prudent risk management measures are in place.

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.