Trade Call: Technical Stock Picks By VLA Ambala On Monday, 19th August

Nifty formed a green candlestick pattern with a long lower shadow in the previous week as the index traded within a 500-point range. However, the benchmark index breached its eight days of consolidation on Friday, closing above its 50-day EMA after gaining support at the 20-day EMA, said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Meanwhile, the volatility indicator, India VIX, witnessed a slump of over 6% in intraday, suggesting a decline in market volatility. The day saw buying activity in major sectors, with Realty, IT, and Auto surging 2% in intraday. Amid these developments, valuation should remain our core focus, especially when planning any fresh investment.

"Nifty's current RSI readings of 55 on the daily, 69 on the weekly, and 77 on the monthly timeframe indicate overvaluation on the higher frame. In this scenario, it would be best to select quality stocks for short-term trading. Notably, stocks that are consolidating at or below their sector valuations could yield attractive returns in the near term," VLA Ambala added.

Market Overview for 19 August 2024, Monday

"For the Nifty index, the key support levels for today's trading session will be around 24,470 and 24,350, whereas resistance will likely be between 24,630 and 24,745. On the other hand, the Bank Nifty Index could find key support around 50,400 and 50,250 and witness 50,850 and 51,150, acting as their major resistance points," VLA Ambala predicted.

Key Triggers To Watch This Week

"This week, there are fewer cues on the macro and micro fronts, as the Q1 earnings season has concluded. However, important global economic data, such as Japan's inflation numbers and the minutes from the U.S. Federal Open Market Committee (FOMC) meeting, will be closely watched. The uncertain geopolitical situation remains the primary near-term risk for the market. Traders will also closely monitor institutional flows and crude oil price movements," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

"On the technical charts, Nifty has finally broken out of the consolidation range between the 50-DMA and 20-DMA, closing above the 20-DMA. This breakout could lead to further bullish momentum, with the 24,800-25,000 zone serving as a key resistance area. On the downside, the 20-DMA around 24,477 will act as immediate support, while the 24,200-24,000 zone remains a critical support area," added Santosh Meena.

Stocks to Checkout on 19 August 2024, Monday

Amid market volatility, VLA Ambala suggested 2 stocks to buy or sell on Monday. Check entry price, stop-loss and target levels below.

SUPREMEIND

• Buy: Rs. 5,160-5,235
• Target: Rs. 5,300/5,350/5,400/5,500
• Stop Loss: Rs. 5,050
• Holding Period: 5-35 Days

SJVN

• Buy: Rs. 140/141
• Target: Rs. 144/147/150/152/155/160
• Stop Loss: Rs. 138
• Holding Period: 5-35 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.