Intraday Guide: 2 Buy Calls By Sumeet Bagadia of Choice Broking On Tuesday - March 26

The Nifty surged from lower points and ended the week at 22,096.75, up 0.33% for the week. While the gain was backed by the sectoral surge, Nifty IT had a dramatic 6% fall. The record highs in the US market, which raised confidence in the home market, drove the rally. Ahead of the long weekend, the domestic market also saw a significant amount of short covering of positions since Indian markets will be closed on Monday in observance of "Rang Panchami." Due to the monthly expiry of the derivatives, the US GDP report, and other key economic data that may keep market observers busy on D-Street, next week will be volatile.

Weekly Market Outlook

Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd said, "The key benchmark indices witnessed a roller-coaster move before closing the week in positive territory. Initially, prices declined to a five-week low amid escalating concerns about froth building in the midcap and smallcap segments. Nifty and Sensex prices settled the week at 22096.75 & 72831.94 up 0.33% and 0.26% respectively. However, the market saw a rebound as bargain hunters stepped in following the announcement from U.S. monetary authorities indicating a potential series of interest rate cuts throughout the year.

Policymakers intend to reduce interest rates three times this year, aligning with the quarterly forecasts from December. Investor sentiment was further buoyed by optimistic forecasts of robust manufacturing and service sector activities in India for March. Additionally, the U.S. 10-year bond yield retreated from a nearly three-month high, reflecting increasing expectations of a reduction in the key benchmark rate."

Commenting on the outlook of Nifty, Arvinder Singh Nanda said, "In Nifty, the prices are expected to be in the range of 21,750-22,350 levels and if the index decisively closes below 21,800 then 21,650 may be the next support for the Nifty 50, while the immediate resistance is likely to be 22200 and then 22,300. Sustaining above 22000 could pull Nifty towards the crucial overhead resistance around 22,200-22,400 levels in the short term. Any decline from 21850 could drag the Nifty down to 21,700 level again in the near term."

On Bank Nifty projection he further added that "In Banknifty, strong support is currently placed at the 46000 level. The Bank Nifty index persists in a "buy on decline" stance until the support below 45800 is convincingly surpassed on a closing basis. In upcoming levels, we can expect R1 to be placed at 47000 levels and S1 to be placed at 46200 levels. Over the short term, the index could move towards 47,500; a decisive move beyond 47,200 might propel it towards 48000."

Nifty Prediction

"Technically, Nifty bounced back from the lower Bollinger band, closed above the 50-day moving average and surpassed the crucial 22,000 level. The Relative Strength Index (RSI) recovered to around 50 level indicating a balanced stance. A drop in India VIX, which ended at 12.12, also boosted the bullish sentiment. Major Nifty support remains at 21,800 while resistance is placed around the 22,350 level for the next week," said Om Mehra, Technical Analyst, SAMCO Securities.

Bank Nifty Prediction

"Bank Nifty exhibited a tough performance and registered a modest uptick of 0.58 percent settling at 46,863.75 in last week. Bank Nifty has bounced back from 100 EMA (Exponential Moving Average) and is now placed above 40-day EMA. The key technical indicators such as MACD and RSI indicate a neutral stance. Interestingly, the volume profile highlights the 46,000 level as a key support zone. As long as the Index remains above this pivot level, the prevailing indication remains for an upward trajectory in the near term," Om Mehra further added.

Stocks To Buy On Tuesday

The Indian stock market will be closed on Monday, March 25, 2024, in observance of the Holi festival, according to the list of stock market holidays that can be found on the BSE/NSE website. The market will open on Tuesday, March 26. For the intraday session, Choice Broking's executive director, Sumeet Bagadia, has suggested buying or selling two stocks.

JSW Energy

Buy JSWENERGY in cash @ Rs 515.45, stop-loss @ Rs 500, target @ 550

JSWENERGY, currently trading at Rs 515.45, has recently formed a cup and handle pattern after a period of consolidation and profit booking. This pattern is well-known for signalling a potential uptrend in stock prices. The pattern is further validated by a bullish candle accompanied by increasing trading volume, indicating strong buying interest in JSWENERGY.

Furthermore, JSWENERGY is trading above its key Exponential Moving Averages (EMAs) - including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a robust positive momentum, implying a sustained upward price trend. The Relative Strength Index (RSI) at 57 further supports this uptrend, indicating an increase in buying pressure.

For investors looking to enter the market, buying JSWENERGY at Rs 515.45 is recommended. To manage risk effectively, setting a stop-loss (SL) at Rs 500 is advisable. This SL level acts as a protective measure, helping to limit potential losses in case the market reverses.

In conclusion, JSWENERGY presents a compelling buying opportunity, with a target price of Rs 550. However, investors should exercise caution and implement risk management strategies, such as setting a stop-loss, to protect their investments.

Sona Blw Precision Forgings Ltd

Buy SONACOMS in cash @ Rs 691.45, stop-loss @ 670, target @ 736

SONACOMS, currently trading at Rs 691.45, is exhibiting a rising channel pattern and has formed a rounding bottom pattern on the four-hourly chart, indicating a potential uptrend. This pattern is supported by a bullish candle with increasing trading volume, suggesting strong buying interest in SONACOMS.

Furthermore, SONACOMS is trading above its key Exponential Moving Averages (EMAs) - including the 20-day, 50-day, 100-day, and 200-day EMAs. This indicates a strong positive momentum, suggesting a sustained upward price trend. The Relative Strength Index (RSI) at 58 further supports this uptrend, indicating an increase in buying pressure.

For investors considering entry, buying SONACOMS at Rs 691.45 is recommended. To manage risk effectively, setting a stop-loss (SL) at Rs 670 is advisable. This SL level acts as a protective measure, helping to limit potential losses in case of a market reversal.

In conclusion, SONACOMS offers a compelling buying opportunity, with a target price of Rs 736. However, investors should exercise caution and implement risk management strategies, such as setting a stop-loss, to protect their investments.

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.