Trade Call: 2 Stock Picks By Sumeet Bagadia On Thursday, 7th March

The Indian stock market showed tenacity and produced an impressive comeback, setting new highs as the Sensex surged to an intraday high of 74,151 and the Nifty got closer to the key 22,500 barrier for the first time on Wednesday. Nifty began the day down and maintained its downward trajectory in the first half of trading. However, in the second half, it put on an incredible comeback, closing at 22,474, up 118 points. To get to 74,086 on the Sensex, 409 points were gained. A key industry indicator, Nifty Bank, had a significant increase of 384 points, finishing at 47,965. Midcaps, on the other hand, performed rather poorly, falling 258 points to finish at 48,857.

Nifty Outlook

Rupak De, Senior Technical Analyst, LKP Securities said, "The index exhibited volatility throughout the session but ultimately closed on a strong note. The short-term trend appears positive, as the index concluded the day above the 21EMA on the daily chart. Additionally, the momentum indicator RSI shows a bullish crossover, indicating a positive momentum for the short term. The bulls are likely to maintain control as long as the index stays above 22,350. Looking ahead, there is potential for the Nifty to reach levels between 22,600 and 22,700 on the higher end."

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "The Bank Nifty index remains under the influence of a bullish trend, approaching its all-time high levels with a marginal gap of 600 points. The ongoing bullish sentiment is evident, backed by a robust support zone established at 47500-47400, serving as a defensive line for the index. Anticipated to surpass its historical highs in the next few trading sessions, the Bank Nifty sets its sights on upside potential targets at 49000/50000 in the near term."

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking, offered recommendations for trading for two stocks on March 7. Here is where you can view the comprehensive technical analysis of Tata Consumer Products and SRF.

SRF

Buy SRF in cash @ Rs 2411.70, stop-loss: Rs 2340, target: Rs 2535

SRF, currently trading at Rs 2411.70, is displaying a consolidation phase within the range of Rs 2360 to Rs 2410. This pattern is indicative of a brief period of indecision in the market, often preceding a potential bullish breakout. The recent price action, supported by a bullish candle and notable trading volume, suggests a growing bullish sentiment among investors.

Adding to the positive outlook, SRF is trading above key Exponential Moving Averages (EMAs), including the 50-day, 100-day, and 200-day EMAs. This alignment indicates a strong bullish momentum, signalling a sustained uptrend in the stock's price. The Relative Strength Index (RSI) further reinforces this perspective, currently at 58, illustrating an upward trajectory and heightened buying momentum.

For investors seeking entry opportunities, purchasing SRF at Rs 2411.70 is advised, considering the stock's favourable positioning. To effectively manage risk, establishing a stop-loss (SL) at Rs 2340 is recommended. This precautionary measure is essential for protecting against potential losses in the event of an unexpected market reversal.

In conclusion, SRF presents an appealing prospect for investors, with a target price set at Rs 2535. However, it is crucial for investors to proceed cautiously and implement effective risk management strategies, such as setting a stop-loss, to safeguard their investments.

Tata Consumer Products

Buy TATACONSUM in cash @ Rs 1220, stop-loss: Rs 1183, target: Rs 1295

TATACONSUM is presently trading at a record high of Rs 1220, indicating a bullish trend on the daily chart marked by higher highs and higher lows, accompanied by significant trading volume. This pattern suggests strong bullish momentum in the stock. It is advisable to consider buying on market corrections at levels around Rs 1207 and Rs 1197.

Additionally, the stock is positioned above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This alignment above crucial EMAs reinforces the bullish sentiment, pointing towards the potential for sustained upward price movement.

The Relative Strength Index (RSI) is currently at 70.53 and trending upwards, reflecting an increase in buying momentum. The convergence of these technical indicators indicates that TATACONSUM may have the potential to achieve a target price of Rs 1295 in the near term.

To manage risk effectively, it is recommended to implement a stop-loss (SL) at Rs 1183. This precautionary measure is crucial to safeguard your investment in case of an unexpected market reversal.

In summary, considering the technical analysis and prevailing market conditions, TATACONSUM appears to present an appealing buying opportunity for those aiming for a Rs 1295 price objective, provided prudent risk management measures are in place.

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.