Trade Call: 2 Technical Stock Picks By Sumeet Bagadia of Choice Broking On Friday - April 5

Index benchmark Nifty reached a new high of 22,514.65, up 0.36%, at the end of the session, having gained 80 points. After a robust first-half lead and heavy selling pressure, Nifty slowly recovered in the second half. On an intraday basis, the India VIX wrapped up at 11.22, down 1.34%. Bulls' comfort levels have grown as the India VIX has now closed in the red for four straight days. Indian benchmark indices began trading on Thursday at a record high of 22592, having previously hit fresh highs of 22619. Large Cap and Small Cap stocks led the way in the broader indices' bullish closing positions. IT stocks gained throughout the trading session for the second straight day. Sector-wise, buying interest was observed in the automobile, information technology, private bank, and financial services sectors; FMCG, PSU banks, and oil and gas sectors continued to face pressure.

Nifty Outlook

"From a technical standpoint, the index was encountering resistance near the 22,530 level, struggling to surpass it. However, the index managed to breach this level today and registered a new all-time high of 22,619 levels. However, profit booking was witnessed from the high level which led to the formation of a hanging man candlestick pattern. As far as the index manages to trade below this level of 22,620, it is anticipated that a bearish momentum will prevail in the index. If the index manages to close above this level then the rally could further extend to 23,000 levels. For the day, support for Nifty exists at 22,300 and 22,200 levels, while resistance stands at 22,620 and 22,700 levels," said Asit C Mehta Investment Interrmediates Ltd.

"Strong put writing (Bulls' entry) coupled with call writers (Bears) exit was observed at the 22,500 Strike in Nifty. This led to Nifty closing above 22,500 level. The put writers now lead the call writers at the 22,500 Strike and the option activity at this strike will provide cues about Nifty's upcoming direction," said Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.

"Technically, a cup with handle pattern appears in the daily timeframe, implying a bullish setup. The Fibonacci retracement indicates solid support around the 22,400 followed by 22,300 levels. As long as this pivotal threshold remains unviolated the bullish trend in the index remains intact. Bollinger Band upholds Nifty's current position as it firmly holds the middle band, which points towards a prevailing bullish sentiment. Stock-specific actions will likely steer the market in the days ahead. The resistance is anticipated at the 22,700 level," Om Mehra, Technical Analyst, SAMCO Securities commented.

Bank Nifty Outlook

"Meanwhile, Bank Nifty opened with a gap up at 48086 on Thursday and remained firm throughout the day. Finally, the index settled the day on a positive note at 48061. Technically, Bank Nifty is comfortably holding above the breakout level of 47,000, indicating the potential for an extension of the rally towards 48,500-48,600 levels in the short to medium term. Short-term support levels for Bank Nifty are seen at 47,700 and 47,500, with resistance levels at 48,200 and 48,500," Asit C Mehta further added.

"Bank Nifty opened with a gap up and came tumbling down before rising steadily in the second half to close 437 points higher at 48,061. Call writers' (Bears) exit with put writers' (Bulls) entry was observed at the 47,500 Strike, which led the up move. However, both the call & put writers battled out at the 48,000 Strike and the option activity at this strike will set the tone for Bank Nifty's future direction," Ashwin Ramani further stated.

"Bank Nifty concluded the session at 48,060.80 with a gain of 0.92%. The index continued its ascent, maintaining higher highs and higher lows in the daily timeframe and positioning above all short-term key moving averages. Technically, Bank Nifty broke out of the symmetrical triangle pattern. The index has violated its prior resistance level of 48,161.2, indicating a strong bullish trend. Private banking stocks are showing strong support especially from the heavyweight HDFC Bank. The index has immediate support at 47,600 and has resistance at 48,500 levels," Om Mehra analysed.

Stocks To Buy Today

On Friday, April 5, Choice Broking's executive director Sumeet Bagadia released a buy or sell recommendation for two companies. The technical analyses of Anup Engineering and Cigniti Technologies are as follows.

Cigniti Technologies

Buy CIGNITITEC in cash @ Rs 1338.4, stop-loss @ Rs 1300, target @ Rs 1403

CIGNITITEC is exhibiting strong bullish momentum, currently trading at an all-time high of 1348.5 levels. This breakout has been accompanied by a consolidation of the upward movement, characterized by higher highs and higher lows, supported by robust trading volumes, reinforcing the strength of the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, CIGNITITEC 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 73.1 levels.

For traders, keeping an eye on the strong support near 1300 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, CIGNITITEC 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 CIGNITITEC and the CMP of 1338.4 with a stop loss of 1300 for the target of 1403.

Anup Engineering

Buy ANUP in cash @ Rs 3428.05, stop-loss: Rs 3320, target: Rs 3636

ANUP has recently experienced a significant breakthrough above the crucial resistance zone ranging from 3115 to 3325 on the daily chart. This breakout has been accompanied by a consolidation of the upward movement, characterized by higher highs and higher lows. 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 ANUP price action.

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

Considering the above analysis, we recommend ANUP in cash at the current market price (CMP) of 3428.05, setting a target of 3636, and implementing a stop loss at 3320.

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.