Trade Call: 2 Technical Stock Picks By Sumeet Bagadia On Wednesday, 13th March

The Nifty barely gained 3 points, closing at 22,336, while the Sensex managed to gain 165 points to end at 73,668 on an extremely volatile day of trading in the markets. The NSE Advance-Decline Ratio was 1:6, indicating a strong bias in favour of declines across all markets. Top Nifty gainers were Adani Enterprises, Cipla, Grasim Industries, Adani Ports, and SBI; top losers were HDFC Bank, TCS, LTIMindtree, Maruti Suzuki, and Infosys. All other sectoral indices finished down, with the exception of the IT index, while the BSE Midcap index fell 1.3 percent and the Smallcap index dropped 2 percent on the broader market front.

Nifty Outlook

"Heavy put writing (Bear activity) was observed at the 22,300 Strike in Nifty. This is also the strike where maximum put open interest is placed. The call writers (Bears) gave serious fight to the bulls at the 22,400 & 22,500 Strike in the Index. The Bears further consolidated their position at the 22,500 Strike. The level of 22,500 continues to remain as a strong resistance level for Nifty. Nifty is unlikely to fall unless put writers (Bulls) exit from the 22,300 Strike," said Mr. Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.

"On Tuesday, Nifty experienced a significant movement of rise and fall, keeping a tighter grip both on bulls and bears, but failed to establish a clear trend at the end of the day. Despite the volatility, Nifty concluded the day at 22,335.70 registering a marginal gain. Notably, major sectors consecutively closed in the red with only the IT sector managing to close in the green. The market breadth also exhibited weakness. The market displayed an unreliable pattern, with small candles rising and larger candles falling, raising concerns for the coming days. Nifty managed to finish just above the psychological support of the 20 SMA. While RSI remained below the 60 level, indicating a lack of strong bullish momentum. However, large-cap participation helped to support the index during the downturn," said Mr. Om Mehra, Technical Analyst, SAMCO Securities.

Bank Nifty Outlook

"Bank Nifty remained volatile throughout the day to close at 47,282, down 45 points. Bank Nifty has formed a long legged doji candle on the daily chart, which signals indecision. Heavy put writing (Bulls' entry) was observed at all strikes from 47,000 to 47,500. Both the call & put writers have sizeable positions at the 47,500 Strike in Bank Nifty and the option activity at this strike will provide cues about Bank Nifty's future direction," said Mr. Ashwin Ramani.
"Bank Nifty remained fragile, closing at 47,282.40, marking a 0.10% decline and extending its lower trend for the third consecutive day. The PSU Bank sector also exhibited weakness although heavyweight HDFC played a supportive role. Bank Nifty is currently holding on to the middle Bollinger band, and a dip below 46,800 would imply weakness. The next support level is anticipated at 46,200 while resistance is placed at 47,800," Om Mehra further stated.

Stocks To Buy Tomorrow

On March 13, Choice Broking's Executive Director Sumeet Bagadia recommended trading two stocks. Below is an entry to the thorough technical analysis of Linde India and Ingersoll-Rand (India).

Linde India

Buy LINDEINDIA in cash @ Rs 6320.25, stop-loss: Rs 6244, target: Rs 6641

LINDEINDIA is currently trading at Rs 6320.25. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of Rs 6300 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching Rs 6641 levels. On the downside, substantial support is evident near Rs 6244.

Furthermore, LINDEINDIA 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 73.50, signalling an upward trajectory and confirming an increase in buying momentum.

In summary, considering the technical analysis and prevailing market conditions, LINDEINDIA appears to present a promising buying opportunity for those targeting a Rs 6641 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 6244 to protect the investment in case of an unexpected market reversal.

Ingersoll-Rand (India)

Buy INGERRAND in cash @ Rs 3699.35, stop-loss: Rs 3605, target: Rs 3936

INGERRAND daily chart analysis reveals a notable shift in market dynamics, transitioning from a period of minor declines and sideways consolidation to a promising upside bounce. This breakout has been accompanied by a consolidation of the upward movement, characterized by Bullish Engulfing Pattern. 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 INGERRAND price action.

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

Considering the above analysis, we recommend INGERRAND in cash at the current market price (CMP) of 3699.35, setting a target of 3936, and implementing a stop loss at 3605.

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.