Trade Call: 2 Stock Picks By Sumeet Bagadia of Choice Broking On Friday - March 22

Nifty had a strong opening gap up but spent much of the day trading flat, closing at 22,012, up 173 points. The fear gauge, the India VIX, dropped 7.13% to 12.51 intraday, providing some solace to bulls. With support from global trends, the Indian market made a bold comeback on Thursday. The INDIA VIX dropped by 7% and closed at 12.51. The broader sentiment among investors is probably going to be optimistic as long as it stays below the 14 level. The core inflation rate data for Japan, which reached a 4-month high of 2.8% YoY in February 2024 and may cause the domestic market to remain consolidated, will be the centre of investors' attention today.

Nifty Outlook

"The put writers (Bulls) made a solid comeback at the 22,000 Strike in Nifty today. They successfully dethroned the call writers from the 22,000 Strike. The put open interest (OI) at the 22,000 Strike is 1,45,553 contracts compared to 1,03,620 contracts on the call side. This level will act as a strong support for Nifty. The index also closed above the 50-Day Exponential Moving Average (DEMA) of 21,869 today after closing below it in the previous two trading sessions. The option activity at the 22,000 Strike will provide cues about Nifty's future direction," said Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.

"Technically, Nifty's daily chart now holds above 50 DMA (Daily Moving Average). The Fibonacci retracement indicates solid support around the 21,890 level, as long as this pivotal threshold remains unviolated, the index is expected to remain bullish. The Donchian Channels, signals both bullish and bearish extremes, affirming Nifty's current position to remain with neutral to positive bias. Stock-specific actions will likely steer the market in the days ahead. The crucial resistance is placed around the 22,222 level," said Om Mehra, Technical Analyst, SAMCO Securities.

Bank Nifty Outlook

"Bank Nifty consolidated in a range throughout the day to close 374 points higher at 46,685. Bank Nifty closed in green for the first time after nine consecutive trading sessions of closing in red. However, Bank Nifty has formed yet another doji candle for the sixth consecutive day. Doji candle signals indecision. Call writers (Bears) exiting and put writers' (Bulls) entry was observed at the 46,500 Strike. The option activity at 46,500 Strike will provide cues about Bank Nifty's future direction," added Ashwin Ramani.

"Bank Nifty halted the losing streak and concluded the session at 46,684.90 with a gain of 374 points, up 0.81%. The Index opened with a decent gap up and gained momentum but witnessed selling pressure in the second session. RSI is slowly gearing up and marked to end near 50 levels, indicating there is enough headroom available for further rally. Bank Nifty was supported by the participation of both Private and PSU banking stocks together, which had seen decent sell-off in past trading sessions. The index has immediate support at 46,300 and faces resistance around 47,300 levels," added Om Mehra.

Stocks To Buy Today

The executive director of Choice Broking, Sumeet Bagadia, proposed a trading strategy for shares of ABB India and Hitachi Energy India on Friday, March 22.

Hitachi Energy India

Buy POWERINDIA in cash @ Rs 7242, SL @ Rs 6989, TGT @ Rs 7681

POWERINDIA is exhibiting strong bullish momentum, currently trading at an all-time high of 7450 levels. The recent breakout above the crucial resistance at 6800 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, POWERINDIA is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 74.23 levels.

For traders, keeping an eye on the strong support near 6989 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, POWERINDIA current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying POWERINDIA and the CMP of 7242 with a stop loss of 6989 for the target of 7681.

ABB India

Buy ABB in cash @ Rs 5864.90, SL: Rs 5700, TGT: Rs 6200

ABB, currently trading at Rs 5864.90, is displaying a double bottom pattern and has successfully broken out of the range between Rs 5600 and Rs 5780, sustaining its position above this range. This breakout phase was characterized by a bullish candle and significant trading volume, indicating a strong potential for further upward movement.

Furthermore, ABB is trading above its key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong positive momentum in the stock, hinting at the possibility of continued price growth. The Relative Strength Index (RSI) at 68 further supports this uptrend, indicating an increase in buying pressure.

For investors looking to enter the market, buying ABB at Rs 5864.90 is recommended. To manage risk effectively, setting a stop-loss (SL) at Rs 5700 is advisable. This SL level acts as a protective measure, guarding against potential losses in case of a market reversal.

In conclusion, ABB presents a compelling buying opportunity, with a target price of Rs 6200. However, investors should exercise caution and implement risk management strategies, such as setting a stop-loss, to safeguard 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.