Trade Call: 2 Stock Picks By Sumeet Bagadia of Choice Broking On Wednesday - April 3

For the second day in a row, the Nifty closed 9 points down at 22,453 after trading sideways. The India VIX wrapped up at 11.65 after falling 3.56% intraday. The PSE, Metal, Energy, and Nifty Consumer Durables sectors, on the other hand, all saw gains. Although the broader indices were mixed, there was significant buying activity in the Midcap and Smallcap sector companies. Sector-wise, there was a tremendous buying appetite for the media, automobile, metal, consumer durables, oil and gas, and real estate sectors; however, the information technology, finance, pharmaceutical, and healthcare sectors were under pressure. Ahead of the key economic data and US Fed Chair Powell's speech due on Wednesday, the global market is likely to remain volatile. The domestic market will keenly watch the RBI MPC policy which started today.

Nifty Outlook

"From a technical standpoint, the index is encountering strong resistance around the 22,530 level. Therefore, 22,530 will pose a significant hurdle for the index in the short term. Sustaining above this level could potentially extend the rally to 22,700-22,800 levels. For the short term, support for Nifty is anticipated at 22,300 and 22,130 levels, while resistance levels are at 22,530 and 22,600," said Asit C Mehta Investment Interrmediates Ltd.

Bank Nifty Outlook

"Meanwhile, Bank Nifty opened with a gap down at 47,491 on Tuesday and remained sideways throughout the day, ultimately settling on a flat to negative note at 47,545. Technically, Bank Nifty has surpassed the 47,000 level and maintained its position above it, suggesting a potential extension of the rally towards 48,000-48,500 levels in the short term. Short-term support levels for Bank Nifty are seen at 47,200 and 47,000, with resistance levels at 47,800 and 48,000," added Asit C Mehta.

Stocks To Buy Today

On Wednesday, April 3, Choice Broking's executive director Sumeet Bagadia recommended buying or selling two stocks. The technical evaluations of the stocks are as follows.

HEG

Buy HEG in cash @ Rs 2079, stop-loss: Rs 2033, target: Rs 2220

HEG 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. The current trading session reflects an up move, potentially signalling an upside breakout from a narrow range momentum. This development aligns with a positive short-term trend, further reinforced by a surge in trading volume.
Key technical indicators, such as the Relative Strength Index (RSI), underscore the stock's positive momentum.

The RSI not only exhibits positive signals but the stock is also trading above crucial moving averages-specifically, the 20-day, 50-day, and 200-day Exponential Moving Averages (EMA). This convergence suggests sustained strength in HEG price action.

Volume analysis further substantiates the credibility of the up move, with a pronounced increase accompanying the positive trend.

The comprehensive evaluation of HEG daily chart implies the existence of a broader bullish pattern in the stock price. This, in turn, presents a compelling long trading opportunity for investors seeking to capitalize on the anticipated upward trajectory.

Based on the above analysis we recommend buying HEG in cash at CMP of 2079 for the target of 2220 with a stop loss of 2033.

Dixon Technologies (India)

Buy DIXON in cash @ Rs 7915.5, stop-loss: Rs 7700, target: Rs 8277

DIXON Industries has recently exhibited a robust breakout from the critical resistance zone of 6500-7200 on the daily chart, consolidating the move with higher highs and higher lows. This breakout is supported by a notable increase in trading volume, indicating strong bullish sentiment.

Key technical indicators, particularly the Relative Strength Index (RSI), emphasize the stock's positive momentum. The RSI not only signals positive trends but also aligns with the stock trading above crucial moving averages, including the 20-day, 50-day, and 200-day Exponential Moving Averages (EMA). This convergence underscores the sustained strength in DIXON Industries price action.

In summary, the decisive breakout, coupled with favourable volume and a positive alignment of key technical indicators, suggests a bullish outlook for DIXON Industries. Traders and investors may find this analysis indicative of potential continued upward momentum in the stock.

Based on the above analysis we recommend buying DIXON Industries in cash at CMP of 7915.5 for the target of 8277 with a stop loss of 7700.

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.