Buy/Sell: 4 Swing Trading Stock Picks By VLA Ambala For 18th March, Monday

The day on Friday marked another day for the stock market in the red territory, with rampant selling trends seen in almost all major sectors. At the end of another week, the Nifty formed a bearish candlestick pattern, 'Bearish Belt Hold,' on the weekly timeframe.

The benchmark index's current relative strength index (RSI) points at 64 on the weekly timeframe, signalling a possibility of the market inching closer to the overbought territory. Judging by the current momentum, the Nifty might continue to record a decline in the upcoming 2-4 days, said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

The market sentiment is already quite cautious, especially with the Lok Sabha election date drawing closer. In addition, the feeling of uncertainty, restrictions, and scrutiny of the SEBI small-mid cap funds and ongoing cross-border unrest are adding to the selling pressure.

It is expected these situations could lead to a dip, which might present traders with some lucrative buying opportunities. Those who previously missed to join the uptrend could get chances to tap into the momentum again. However, they must diversify their portfolio to hedge the risks and protect their capital. Amid these developments, the Nifty's key support levels for the next session are likely to be between 22000 and 21920, with resistance levels expected at 22080 and 22170, further added VLA Ambala.

Technical Chart Review

During the day, the Nifty formed the 'Doji Candlestick' pattern in the daily time frame and the 'Bearish Belt Hold' candlestick pattern in the weekly timeframe, which could be seen as a warning sign of a potential trend reversal. The benchmark index was trading within its 20 and 50-day Exponential Moving Average (EMA). In such a situation, I believe the price may consolidate for another day or two before a new big movement is noticed in the range. The index's current Relative Strength Index (RSI) on the daily timeframe is 46, and on the weekly timeframe is 64, indicating a scope of price correction at the higher timeframe, which could continue for another two or four days, commented V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Market View for 18th March 2024

For the Nifty index, the key support levels for the next trading session will be 22000 and 21920, with resistance likely to be observed at 22080 and 22170. The banking index could find key support at 46400 and 46050, with 46950 and 47150 acting as major resistance points.

Stocks To Buy On Monday

V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT), has recommended 4 stocks to buy or sell on Monday, 18th March.

BSOFT

• SELL - Rs. 748
• TARGETS - Rs. 730/720/700
• STOPLOSS - Rs. 669

CAMS

• ENTRY - Rs. 3010/3020
• TARGETS - Rs. 3100/3150/3200/3270/3350/3500
• STOPLOSS - Rs. 2860

BATAINDIA

• ENTRY - Rs. 1410
• TARGETS - Rs. 1435/1450/1470/1500/1515/1550
• STOPLOSS - Rs. 1362

TATASTEEL

• ENTRY - Rs. 143
• TARGETS - Rs. 150/152/154/157/160
• STOPLOSS - Rs. 135

Note: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behaviour, and technical analysis.

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.