Trade Call: 2 Technical Stock Picks By Sumeet Bagadia of Choice Broking On Thursday - April 4

After overcoming its initial weakness, Nifty climbed gradually and reached an intraday high of 22,521 before profit-booking pulled the Index lower, resulting in a close 19 points lower at 22,435. The India VIX wrapped up at 11.37, down 2.40% intraday. For the third day in a row, the India VIX dropped, supporting bulls. However, the advance-decline ratio improved and mid-cap and small-cap stocks wrapped up higher. Midcap and smallcap sector stocks continued their upward trend and mixed in with the broader indices. PSU banks, the media, financial services, information technology, and real estate sectors all saw buying activity, while the FMCG, healthcare, pharmaceutical, and real estate sectors continued to face sell-off pressure.

Nifty Outlook

"From a technical standpoint, the index is facing strong resistance around the 22,530 level. Therefore, 22,530 will pose a significant hurdle for the index in the short term. If the index fails to sustain above 22,530, then the probability of profit booking cannot be ruled out. Sustaining above this level could potentially extend the rally to 22,700-22,800 levels. For the short term, support for Nifty is anticipated at 22,300 and 22,180 levels, while resistance levels are at 22,530 and 22,600," said Asit C Mehta Investment Interrmediates Ltd.

"On the daily charts we can observe that the Nifty has been witnessing consolidation since the past three trading sessions. the momentum setup on the daily and hourly tie frame is providing divergent signal and hence can lead to a consolidation in the near term. On the downside the zone of 22400 - 22350 is acting as a support zone while 22500 - 22530 is the immediate hurdle zone. A breach on the range on either side shall result in a trending move," said Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas.

Bank Nifty Outlook

"Meanwhile, Bank Nifty opened with a gap down at 47,350 on Wednesday. After initial buying interest, it traded in a narrow range throughout the day, ultimately settling on a flat to positive note at 47,624. Technically, Bank Nifty is comfortably holding above the breakout level of 47,000, indicating the potential for an extension of the rally towards 48,000-48,500 levels in the medium term. Short-term support levels for Bank Nifty are seen at 47,200 and 47,000, with resistance levels at 47,800 and 48,000," Asit C Mehta further added.

"Bank Nifty managed to close the day in the green. The zone of 47300 - 47250 acted as a crucial support zone and absorbed the selling pressure. We expect the bank nifty to continue with the up-move towards 48000 - 48160 over the next few trading sessions," commented Jatin Gedia.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, published a buy or sell recommendation for two stocks on Thursday, April 4. The following are the technical analyses of JSW Energy and Vedanta.

Vedanta

Buy VEDL in cash @ Rs 298.8, stop-loss @ Rs 288, target @ Rs 317

VEDL daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable higher high and higher low pattern, and the company's recent upward swing has effectively violated the neckline, establishing a new week high. This breakthrough indicates the possibility of a significant follow-through upward increase in the stock price.

This trend signals strong momentum in the stock. There is potential for VEDL to attain a target price of Rs 317 in the near term.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The stock formed a strong bullish candle on weekly chart signalling a potential continuation of the uptrend. Furthermore, VEDL is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend.
For traders, keeping an eye on the strong support near 288 levels is advisable, as a breach of this level could signal a shift in sentiment.

Based on the above analysis we recommend buying VEDL and the CMP of 298.8 with a stop loss of 288 for the target of 317.

JSW Energy

Buy JSWENERGY in cash @ Rs 581.35, stop-loss @ Rs 562, target @ Rs 612

JSWENERGY is exhibiting strong bullish momentum, currently trading at an all-time high of 583.9 levels. The recent breakout above the crucial resistance at 540 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, JSWENERGY 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 70.93 levels.

For traders, keeping an eye on the strong support near 562 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, JSWENERGY 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 JSWENERGY and the CMP of 581.35 with a stop loss of 562 for the target of 612.

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.