Trade Call: 2-Day Trading Stock Picks By Sumeet Bagadia of Choice Broking On Friday, 3rd May

On Thursday, domestic benchmark indices saw a little rise after the US Federal Reserve's decision to hold interest rates steady. In addition, ahead of the general election, the India VIX, or Volatility Index, climbed by 4.46%. The Nifty50 benchmark index closed its weekly expiration with a meagre gain of 0.19 per cent, having spent the whole day in a narrow range of 140 points or so. Bank Nifty began the day stronger but struggled to maintain a bullish phase, which led to a close on a negative closing price of 49231.

Market Outlook

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "We are in a bull market. Nifty has tripled from the 2020 March lows. Explosive growth in the number of demat accounts from around 4 crores in March 2020 to above 15 crores now indicates the arrival of the retail investors. Indian retail investors, HNIs and DIIs are calling the shots in this bull market and FIIs are consistently losing the tug of war going on in the market. The rally is fundamentally supported by impressive GDP growth and decent corporate earnings. In such a scenario, old trends and sayings like "sell in May and go away" do not hold good.

The market has already discounted the NDA/BJP in the elections. Therefore, the election outcome is unlikely to influence the market beyond a point. However, the market is likely to react to the Budget which the prime minister has already indicated will be 'transformational'. Investors may adopt a multi-asset investment strategy, going forward, with investment in equity, fixed income and gold. The highest weightage should certainly be for equity."

Sunil Damania, Chief Investment Officer, MojoPMS said, "The adage "Sell in May and Go Away" originated from the practices of British brokers on the London Stock Exchange, who historically took extended summer vacations. However, contemporary market dynamics have rendered this notion obsolete, as trading activity remains robust year-round with no significant impact on volume or liquidity during the summer months. Examining market trends over the past decade reveals a pattern of positive returns in nine out of ten instances for the three-month period ending in July. This suggests that holding investments from April to July typically yields favourable results, with the sole exception occurring in 2019, coinciding with an election year."

"Given the current electoral landscape, there exists a likelihood of profit booking in anticipation of market shifts. Presently, market sentiment reflects confidence in the Modi government's continuity, with positive expectations already factored into pricing. While the short-term outlook may appear subdued, our assessment of the equity market for the medium to long term is notably bullish. We maintain a strong conviction that the Indian equity market is poised for significant growth, potentially doubling from the current election cycle to the subsequent one. Therefore, investors facing short-term uncertainties are encouraged to adopt a perspective focused on long-term gains," he further added.

Stocks To Buy Today

The executive director of Choice Broking, Sumeet Bagadia, provided recommendations for two intraday stock picks on Friday, May 3.

Amrutanjan Health Care

Buy AMRUTANJAN in Cash @ Rs 783.55, stop-loss: Rs 757, target: Rs 833

The stock is currently trading at 783.55 levels. Currently stock is trading above all the important moving averages. On daily charts the stock has formed a strong green candle which indicates bullishness in the stock. Now any dip in the stock around 775 levels will be a buying opportunity. A small resistance can be witnessed near 799 levels, and once stock crosses the mentioned level AMRUTANJAN can now further move towards 833 levels and higher.
According to the aforementioned technical analysis, we advise buying AMRUTANJAN at a CMP of 783.55 for the target of 833. If the stock closes below 757, our analysis will be invalid.

HPL Electric & Power Ltd

Buy HPL in cash @ Rs 402.9, stop-loss: Rs 388, target: Rs 425

HPL daily chart analysis reveals a notable shift in market dynamics, transitioning from a period of minor declines and sideways consolidation to a promising upside bounce. This breakout has been accompanied by a consolidation of the upward movement, characterized by Higher High and Higher Low Pattern. The strong bullish sentiment is further validated by a noticeable surge in trading volume.

Key technical indicators, particularly the Relative Strength Index (RSI), highlight the positive momentum in the stock. The RSI not only indicates favourable trends but also aligns with the stock trading above important moving averages, including the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). This convergence underscores the continued strength in HPL price action.

In summary, the decisive breakout, along with encouraging volume and the positive alignment of key technical indicators, suggests a bullish outlook for HPL. Traders and investors may interpret this analysis as indicative of potential sustained upward momentum in the stock.

Considering the above analysis, we recommend HPL in cash at the current market price (CMP) of 402.9, setting a target of 425, and implementing a stop loss at 388.

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.