Trade Call: 2 Technical Stock Picks By Sumeet Bagadia of Choice Broking On Monday, 29th April

Due to a lacklustre set of global cues, the domestic market ended its five-day winning run on Friday. On the first day of the May series, the Nifty began the day higher but ended the day down at 22,420. The small- and mid-cap indices set new all-time highs with a strong surge in the broader market.

The Nifty Bank index had a strong start to the day but was unable to maintain its gains, ending the day down at 48,201. In the week following ease in Middle East tensions, an upturn in oil prices, and strong PMI data, the US Federal Reserve's upcoming policy and US nonfarm payroll data will determine the direction of the global market. Meanwhile, the ongoing Q4 earnings reports will likely impact the trends of the domestic market.

Market Outlook

Alex Volkov, Market Analyst at VT Markets said, "In the week, several key economic events will unfold. China's manufacturing sector will be under the spotlight with the release of the NBS and Caixin Manufacturing PMIs, alongside first-quarter GDP data from Germany and the Eurozone. These indicators will provide insights into the pace of economic recovery in these regions, with particular attention on China's PMIs due to its global economic significance. Positive readings could bolster investor confidence, especially in manufacturing and export-dependent sectors, while contractions may raise concerns about global growth and supply chains. Additionally, the US will release its ISM Manufacturing PMI and JOLTS Job Openings, offering further clarity on the manufacturing sector and job market."

"Simultaneously, the Federal Open Market Committee (FOMC) will announce its interest rate decision, which is expected to remain unchanged amidst inflation worries. Any unexpected rate adjustments could impact the USD and stock prices accordingly. Finally, the US Non-Farm Payrolls data will be closely watched as an indicator of economic health, potentially influencing future Federal Reserve policy. Strong job growth may lead to monetary tightening, strengthening the USD and impacting bond yields, while weak growth could signal economic stagnation, affecting Treasury yields and the dollar. Market fluctuations are anticipated, with traders advised to closely monitor releases and central bank activities for insights into future monetary policies, particularly in the US," Alex Volkov further added.

Nifty & Bank Nifty Outlook

"On the technical front, Both Nifty and Bank Nifty faced resistance at crucial levels. Nifty couldn't hold above 22,530, leaving the 22,400-22,200 zone as immediate support. A major support level lies at the 100-day moving average (DMA) around 21,900. If Nifty surpasses 22,620, the May series high, a potential rally towards 23,000 becomes possible. Otherwise, expect continued volatility within the 21,800-22,500 range. Bank Nifty, though relatively stronger, also struggled to stay above 48,600. A sustained breakout above this level could trigger a move towards 50,000. Immediate support sits at 47,800, with a crucial support level at 47,200 below that," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Stocks To Buy Today

On Monday, April 29, Choice Broking's executive director, Sumeet Bagadia, recommended buying or selling two stocks.

TD Power Systems

Buy TDPOWERSYS in cash @ Rs 350.05, stop-loss @ Rs 339, target @ Rs 370

TDPOWERSYS is exhibiting strong bullish momentum, currently trading at an all-time high of 361 levels. The recent breakout above the crucial resistance at 336 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, TDPOWERSYS 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 76.04 levels.

For traders, keeping an eye on the strong support near 339 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, TDPOWERSYS 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 TDPOWERSYS and the CMP of 350.05 with a stop loss of 339 for the target of 370.

Sterling and Wilson Renewable Energy

Buy SWSOLAR in cash @ Rs 682.55, stop-loss: Rs 661, target: Rs 717

SWSOLAR is currently trading at Rs 682.55. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of Rs 643 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching Rs 717 levels. On the downside, substantial support is evident near Rs 661.

Furthermore, SWSOLAR is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 78.5, signalling an upward trajectory and confirming an increase in buying momentum.

In summary, considering the technical analysis and prevailing market conditions, SWSOLAR appears to present a promising buying opportunity for those targeting a Rs 717 price objective, contingent upon the implementation of prudent risk management measures.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 661 to protect the investment in case of an unexpected market reversal.

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.