Swing Trading Guide: 2 Buy/Sell Stock Recommendations By VLA Ambala On Thursday, 16th May

According to V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) the fourth phase of the General Assembly election has concluded and its heat can be felt across the stock market. During this election season, the benchmark index Nifty corrected nearly 4.5% from its all-time high and is currently trading at a 2.70% discounted price from its recent high. Amid recent developments, most sectors managed to outperform. Judging by the current momentum they are likely to remain in focus as and when dip opportunities emerge.

Technical Analysis

"The benchmark index Nifty is currently trading with a Relative Strength Index of 58 on the weekly and 70 on the monthly timeframe. This indicates that there is still a possibility of correction. At present, the 21,800 mark is acting as Nifty's key support level. If the index breaches this level this month, the move could trigger more sell-off in the market, pushing the price lower. We must note that the index has delivered around 20% returns in a year, and could continue to do so despite a temporary slowdown," VLA Ambala stated.

"Currently, Nifty is trading close to its 20-day exponential moving average (EMA) on the weekly timeframe. Notably, this level is around 8% away from its 20-day exponential moving average (EMA) on the monthly timeframe. This divergence may hint at a potential conflict between short-term and long-term trends. However, the gap is likely to be filled over time," the analyst further added.

Market View for 16 May 2024

"For the Nifty index, the key support levels for today's trading session will be around 22000 and 21830, whereas resistance will likely be noticed between 22300 and 22370. On the other hand, the Banking Index could find key support at 47100 and 46800, and witness 47800 and 47950, acting as their major resistance points," VLA Ambala predicted.

Stocks To Buy/Sell Today

V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) has recommended 2 swing trading stocks to buy or sell on Thursday, 16th May.

Sanghvi Movers

• TRADE TITLE: SWING
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 1440 - 1450
• TARGET 1: Rs. 1525
• TARGET 2: Rs. 1600
• TARGET 3: Rs. 1650
• TIME PERIOD: 5-15 Days
• STOP LOSS: Rs. 1370

Honda India Power Products

• TRADE TITLE: SWING
• TRADE TYPE: BUY
• ENTRY PRICE RANGE: Rs. 2640 - 2650
• TARGET 1: Rs. 2800
• TARGET 2: Rs. 3000
• TARGET 3: Rs. 3100
• TIME PERIOD: 15-30 Days
• STOP LOSS: Rs. 2550

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.