Trade Call: Technical Stock Picks By VLA Ambala On Monday, 12th August

During Friday's session, the benchmark index Nifty recorded a gap-up opening of nearly 1% and traded within a narrow range. However, the index eventually closed below the day's opening level, forming a small Doji candlestick pattern on the daily timeline.

V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) said, currently, Nifty 50 is trading between its 20-day and 50-day EMAs, approximately 3% below its all-time high. For instance, the RSI reading in the weekly frame was 68, whereas in the monthly frame, it was 75. These developments indicate the possibility of a corrective move in 4-7 days. Additionally, the Nifty formed a Hanging Man candlestick pattern on the weekly time frame. On Friday, India VIX slumped by nearly 8% intraday, while sectors such as PSU, IT, and Media surged the most.

Market Outlook Today

"This week, all focus will be on the global markets as we can see the extension of weakness after a long period of stability. The Indian equity market could also witness some bit of levelling off next week as investors process recent gains and contend with high prices. Geopolitical tensions are also escalating, but markets are not reacting significantly, which is reflected in the declining crude oil prices," said Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.

"On the domestic front, the last batch of Q1 earnings will drive stock-specific movements. HEROMOTOCO, HINDALCO, APOLLOHOSP are some of the big earnings in the next week. Additionally, institutional flows will play a crucial role in market dynamics," he further added.

Market Overview For 12 August, Monday

"For the Nifty index, the key support levels for today's trading session will be between 24,320 and 24,260, whereas resistance will likely be between 24,440 and 24,530. On the other hand, the Bank Nifty Index could find key support between 50,250, 50,010, or 49,850 levels and witness acting 59,850 and 51,200 as their major resistance points," VLA Ambala added.

Stocks To Checkout On 12 August, Monday

BSOFT

• Buy: Rs. 581
• Target: Rs. 595-645
• Stop Loss: Rs. 550
• Holding Period: 2-10 Days

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.