Buy/Sell: 4 Swing Trading Stock Picks By VLA Ambala On Tuesday, 12th March

Since price tends to react before the news circulates in the market, it becomes crucial to closely observe price at a crucial level inducing vital support ranges and all-time high levels. During the day, Nifty, which is trading at nearly its all-time high formed the 'Hanging Man' candlestick pattern at the daily and weekly timeframes. Such development hints at a potential selling due to profit booking. The Nifty also declined nearly 0.72%, while the bank nifty plunged 1.05% in intraday on Monday, 11th March.

Judging by the levels, price may continue to display bearish momentum, but traders and investors must not take them as a reversal. Whether you are trading in the market with a short-term view or engaging in F&O, I would suggest hedging your capital to safeguard it and capitalize on potential opportunities, said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Review of Stock Market

During the day, selling pressure was observed in the global market as concerns over rate cuts continue to impact the domestic market sentiments as well. Valuation-wise, the current market is at the overbought level and may remain in the zone for some time. The global market has already reacted negatively to the US non-farm payroll data. Now, it remains to be seen how US inflation data, which could be the next major trigger point, impacts the interest rate cut decisions and the market conditions, stated VLA Ambala.

Given the way, 'gold' is rising in the global market, it seems the inflation data could demotivate the stock market. This is why the broader stock market's ongoing underperformance can be attributed to its valuation concerns, encouraging many to rebalance their investment portfolio by incorporating safe-haven assets such as gold and silver. I would suggest maintaining a diversified and balanced portfolio to spread out risks, the analyst further added.

Technical Chart Analysis

During the day, the Nifty formed a 'Bearish Belt-hold' and 'Evening Star' candlestick pattern in a daily time frame. The Relative Strength Index (RSI) stands at 57 on the daily and 70 on the weekly timeframe, indicating that the price continues to be in the overbought zone and might undergo correction in the next 2-4 days, commented V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Market View for 12th March 2024

In this case, the major support level for the index would be at 22050 and 22000. For the next trading session, the key support levels for Nifty will be 22220 and 22110, whereas resistance will be observed at 22350 and 22380. The banking index could find key support between 47100 and 46900, with 47300 and 47390 acting as major resistance, she further stated.

Stocks to Check Out on March 12, 2024

TORNTPOWER

• ENTRY - Rs.1040-1100
• TARGETS - Rs.1140/1180/1230/1280/1350/1400
• STOPLOSS - Rs.970
• VIEW- SWING

CAMS

• ENTRY - Rs. 3050
• TARGETS - Rs.3200/3270/3350/3500
• STOPLOSS - Rs. 2940
• VIEW - SWING

LINDEINDIA

• ENTRY - Rs. 5890
• TARGETS - Rs. 6000/6100/6220/6500
• STOPLOSS - Rs. 5550
• VIEW - SWING

Bala Mines

• ENTRY - Rs. 2150-2200
• TARGETS - Rs. 2450/2515/2550/2600/2650/2700
• STOPLOSS - Rs. 1860
• VIEW - SWING

Note: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behavior, 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.