Trading Guide: 2 Buy Call Recommendations By Sumeet Bagadia On Friday, 15th March

After rising steadily throughout the first half, Nifty saw a slight dip but ended the day 149 points up at 22,147. The India VIX index dropped 5.61% intraday to 13.62, providing solace to the bulls. With a 0.68% rise for the session, the Nifty closed the day at 22,146.65. Bank Nifty recovered from its early weakness and gained gradually until falling to end the day at 46,790, 191 points lower in the second half.

Nifty Outlook

"Heavy put writing (bulls' entry) was observed at all strikes from 21,800 until 22,000. This led the steady rise in the Index after it saw a severe fall in previous session. The 22,000 Strike price saw call writers (Bears) exiting and put writers' (Bulls) entry, indicating support getting stronger. The Bulls built significant positions at the 22,000 Strike in Nifty today. Unless Bulls exit from the 22,000 Strike, the fall is unlikely to extend further," said Mr. Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.

"On the daily charts we can observe that the Nifty has held on to the support zone of 21900 - 21860 where support parameters in the form of the 40 day average and the previous swing low is placed. On the upside the key hourly averages placed in the zone of 22200 - 22240 acted as a resistance and restricted further upside. In the current bounce back if the Nifty manages to overlap with level of 22256 then the current fall shall turn out to be a corrective fall. Thus, it's crucial how the structure pans out over the next few trading sessions," commented Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas.

Bank Nifty Outlook

"Bank Nifty held on to the 40-day average (46700) and the 61.82% fibonacci retracement level (46616) and managed to close above that. We believe that the selling pressure is being absorbed and we expect a recovery over the next few trading sessions in the case of Bank Nifty as well. In terms of levels, 46600 - 46500 is the crucial support while 47200- 47300 is the immediate hurdle," added Jatin Gedia.

"Both the call & put writers fought fiercely at the 47,000 Strike in the Index. Bank Nifty has formed a doji candle on the daily chart and has taken support from the 50-day exponential moving (DEMA) of 46,604. The option activity at 47,000 Strike will provide cues about Bank Nifty's future direction," stated Ashwin Ramani.

"Hourly charts indicate weakness, with a downside level of around 46,200, if it falls below 46,500. Despite the MACD showing a slight negative skew, sustaining above 47,100 could reignite buying interest in the Bank Nifty," said Om Mehra, Technical Analyst, SAMCO Securities.

Stocks To Buy Today

On March 15, Choice Broking's Executive Director Sumeet Bagadia recommended trading Cigniti Technologies and IFB Industries. Check the detailed technical analysis below, which includes entry and target prices along with stop-loss levels.

Cigniti Technologies

Buy CIGNITITEC in cash @ Rs 1205.15, stop-loss @ Rs 1188, target @ Rs 1246

CIGNITITEC is exhibiting strong bullish momentum, currently trading at an all-time high of 1213.5 levels. The recent breakout above the crucial resistance at 1200 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, 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 66.36 levels.

For traders, keeping an eye on the strong support near 1188 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 1205.15 with a stop loss of 1188 for the target of 1246.

IFB Industries

Buy IFBIND in cash @ Rs 1384.10, stop-loss: Rs 1340, target: Rs 1470

IFBIND , currently priced at Rs 1384.10, has recently broken out of a range between Rs 1336 and Rs 1397. This breakout was confirmed by a bullish engulfing candlestick pattern, indicating a potential continuation of its upward trend.

Additionally, IFBIND is trading above key Exponential Moving Averages (EMAs), specifically the 100-day and 200-day EMAs. This suggests a strong upward momentum and hints at a possible continuation of the uptrend. The Relative Strength Index (RSI) is at 55.50, showing bullish divergence and signalling an upward trend with increasing buying interest.

For investors looking to take advantage of this potential bullish momentum, it is advisable to consider buying IFBIND at the current market price of Rs 1384.10. To manage risk effectively, setting a stop-loss (SL) at Rs 1340 is recommended. This stop-loss level acts as a protective measure, safeguarding investments in case the market moves against the trade.

In summary, IFBIND presents a favourable buying opportunity, with a target price of Rs 1470. Investors should carefully monitor the stock's price movement and implement appropriate risk management strategies to protect their investments.

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.