Trade Call: 2 Stock Picks By Sumeet Bagadia of Choice Broking On Monday - April 1

The Nifty climbed 230.15 points (1.04%) to 22,326.90 at the weekly finish, while the Sensex gained 819.41 points (1.13%) to 73,651.35. On the day of expiry, Nifty came extremely close to hitting the previous all-time high of over 22,500 and concluded the week just above 22,300. The primary domestic and international economic statistics, automobile sales in India, the purchasing managers' indices (PMI) for manufacturing in the US and India, factory orders, U.S. non-farm payrolls, job openings in the US, and the unemployment rate will all impact the market's perspective which will be also guided by the Monetary Policy Committee of the Reserve Bank of India will determine policy rates during its meeting on April 3-5, 2024.

Market Outlook

Mr. Aditya Gaggar, Director of Progressive Shares said "On the last day of the week/month and financial year, the Index gave a much-needed Inverted Head & Shoulder formation and ended the session at 22,327. A hidden bullish divergence in RSI will provide room to inch higher to achieve the target of 22,640. The immediate resistance is placed at 22,450 while the downside is protected at 22,200. From the Banking space, Bank Baroda (Reversal from the lower end of the rising channel with a hidden bullish divergence), IndusInd Bank (On the verge of consolidation breakout), and Kotak Bank (Inverted Head & Shoulder Breakout) look strong.

Secular uptrend continued in the Auto sector with a higher top higher bottom formation Ashok Leyland- DOJI at strong support as well as at a lower end of the rising channel, Hero Motocorp- about to give an Ascending Triangle Breakout, and Motherson Sumi- Cup and Handle Breakout). One should keep an eye on Nestle India (cusp of a Symmetrical Triangle Formation breakout) from the FMCG segment. The Metal sector has given a fresh breakout indicating continuation of the existing uptrend (NALCO- Consolidation breakout/pullback, Tata Steel- Rounding Bottom Breakout)."

Stocks To Buy Today

On Monday, April 1st, Choice Broking's executive director Sumeet Bagadia recommended buying or selling of two stocks.

IFB Industries

Buy IFBIND in cash @ 1505.95 SL 1470 TGT 1600

IFBIND Industries has recently exhibited a robust breakout from the critical resistance zone of 1450-1300 on the daily chart, consolidating the move with higher highs and higher lows. This breakout is supported by a notable increase in trading volume, indicating strong bullish sentiment.

Key technical indicators, particularly the Relative Strength Index (RSI), emphasize the stock's positive momentum. The RSI not only signals positive trends but also aligns with the stock trading above crucial moving averages, including the 20-day, 50-day, and 200-day Exponential Moving Averages (EMA). This convergence underscores the sustained strength in IFBIND Industries price action.

In summary, the decisive breakout, coupled with favourable volume and a positive alignment of key technical indicators, suggests a bullish outlook for IFBIND Industries. Traders and investors may find this analysis indicative of potential continued upward momentum in the stock.

Based on the above analysis we recommend buying IFBIND Industries in cash at CMP of 1505.95 for the target of 1600 with a stop loss of 1470.

IPCA Laboratories

Buy IPCALAB in cash @ 1237.40 SL @ 1200 TGT @ 1320

IPCALAB, currently priced at Rs 1237.40, has formed a double bottom pattern on the daily chart, followed by a bullish candle with emerging volume. This setup indicates IPCALAB's potential for further upward movement. The pattern, along with bullish candles and increasing trading volume, suggests a potential uptrend in the stock.

Additionally, IPCALAB is trading above its key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This signifies a strong positive momentum, implying a sustained upward price trend. The Relative Strength Index (RSI) at 63 further confirms this uptrend, indicating a growing buying pressure.

For investors considering entry, buying IPCALAB at Rs 1237.40 is recommended. To manage risk effectively, setting a stop-loss (SL) at Rs 1200 is advisable. This SL level acts as a protective measure, guarding against potential losses in case of a market reversal.

In conclusion, IPCALAB presents a promising buying opportunity, with a target price of Rs 1320. 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.