Buy/Sell: 5 Technical Stock Picks By VLA Ambala On Friday, 16th Feb

The stock market opened on a flat note on Thursday and ended the day with a sideways to positive bias. While the index closed above its previous day's high, the stock market observed the formation of a bearish candlestick pattern - 'Hanging Man.' However, when we factor it in relation to the overall price momentum and its formation above the 200-day exponential moving average (EMA), it could be considered a potential 'Hammer' candlestick pattern for dip buying for mid and long-term investors. This price action also suggests that the stock market may continue to be bullish above this pattern.

During the day, the Nifty showed a lower price rejection, which confirms that the bulls are unwilling to let go of their control in the market when the price is trading within the 21530 to 21470 range. Notably, the technical charts suggest this range is crucial as it represents the market's last hope.

Meanwhile, the ongoing Kisaan protest, the Electoral Bonds Scheme verdict, and the soaring inflation level are among the major factors triggering the market dynamics ahead of the assembly elections. As uncertainty looms over the current government's continuation in power, the market faces doubts and confusion. These events might influence the market significantly in the short term.

Review of the Market Sentiment

The stock market sentiment remains stable despite the delay in awaited Repo rate cuts. However, the high inflation level continues to be a pressing matter in the days leading to the assembly elections. This is why investors are hoping for Repo rate adjustments to witness some relief in food prices amid inflationary pressure.

Notably, India is working actively on domestic semiconductor manufacturing, and in this regard, Peru has a key role that can support our country's economy. Peru, situated within the lithium triangle alongside Argentina, Bolivia, and Chile, is a key producer of zinc, lithium, gold, lead, copper, and silver. Additionally, India and Peru are continuously exploring ways to reduce or eliminate customs duties on various traded goods and working to simplify trade norms in services after a 5-year hiatus. Notably, the seventh round of the India-Peru trade agreement negotiations has been scheduled for April 2024.

The MSME sector, the backbone of India's economy, has been going through a crisis. A recent report disclosed that over 35000 MSMEs were shut down post-pandemic, and most of them were based in Gujarat, Maharashtra, and Tamil Nadu. On top of that, the high inflation level and soaring borrowing rates are making it challenging for the MSMEs to survive. This calls for urgent actions on the part of the regulatory bodies to address the situation. On the upside, the PFI's investment rose by 13% to $738 billion in the December quarter, up from the September quarter of $651 billion.

Technical Overview of the Market

The India VIX concluded the day around the 15.24 level, signalling a prevalent sense of volatility in the stock market. Notably, Nifty saw a lower price rejection and closed the day above its 5-day trading range and 20-day exponential moving average (EMA). In this situation, the range between 21530 and 21470 serves as a strong support range, whereas 21730 to 21650 is the nearest support on the weekly time frame.

Key Levels to Watch on February 16th, 2024

The Nifty is anticipated to find support within the 21840 and 217600 range. On the other hand, the index's major resistance point for intraday trading could be between the 22030 and 22135 range. For the Bank Nifty, the intraday support levels are expected to be within the 46200 and 45950 range, with resistance between the 46480 and 46800 levels.

Stocks To Buy Buy or Sell Today

Stocks to Buy or Sell Today: VLA Ambala (SEBI Regd. Research Analyst) recommends checking out these five stocks on - February 16, 2024. According to her analysis, HINDOILEXP, COFFEEDAY, HDFCBANK, SFL, and RECLTD have ample growth potential.

Stocks to Check Out for Intraday and Swing Trading on February 16, 2024

HINDOILEXP

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 205 - Rs. 207
• TARGET 1: Rs. 218
• TARGET 2: Rs. 240
• TIME PERIOD: 15-20 Days
• STOP LOSS: Rs. 185

COFFEEDAY

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 64 - Rs. 65
• TARGET 1: Rs. 68
• TARGET 2: Rs. 70
• TIME PERIOD: 12-15 Days
• STOP LOSS: Rs. 60

HDFCBANK

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 1410 - Rs. 1415
• TARGET 1: Rs. 1440
• TARGET 2: Rs. 75
• TIME PERIOD: 8-40 Days
• STOP LOSS: Rs. 1380

SFL

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 1090 - Rs. 1095
• TARGET 1: Rs. 1115
• TARGET 2: Rs. 1150
• TARGET 3: Rs. 1200
• TARGET 4: Rs. 1250
• TIME PERIOD: 8-90 Days
• STOP LOSS: Rs. 1030

RECLTD

• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 480 - Rs. 485
• TARGET 1: Rs. 500
• TARGET 2: Rs. 515
• TARGET 3: Rs. 530
• TARGET 4: Rs. 570
• TIME PERIOD: 8-70 Days
• STOP LOSS: Rs. 450

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.