Trading Guide: 2 Buy Call Recommendations By Sumeet Bagadia For Monday, 18th March

The Friday trading session on the Indian stock market was marked by volatility, as the Sensex and Nifty 50 completed the day in a downward trend. The Nifty shed 123 points to close at 22,023, while the Sensex dropped 454 points to close at 72,643 at the closing bell. Modest declines were also seen in the broader markets, as the Midcap Index fell by 216 points to 46,886 and the Nifty Bank fell by 196 points to 46,594. From an economic standpoint, the announcement of interest rate decisions by major central banks worldwide, such as the US, UK, and Japan, is scheduled for next week. Market observers will be closely following the US Fed's policy decision and discussion, and as a result, the market is expected to stay turbulent.

Nifty Outlook

"Heavy call writing (Bears entry) was observed at the 22,000 & 22,100 Strike in the Index. This led to a sharp fall in the first half in Nifty. An evening star like pattern is visible on the weekly chart which is considered to be a bearish reversal signal. The option activity at the 22,000 Strike will provide cues about Nifty's future direction," said Mr. Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.

"In the daily time frame, Nifty fell below the rising trendline and the 20-day moving average (DMA). The 22,000 level remains a crucial threshold, as bulls aim to maintain this level while bears are busy attempting to push it down under 22K. US Indices appear to be in an overbought zone indicating a potential correction. Investors are mindful of this situation. The impact was felt in small and mid-cap segments affecting heavy profit booking. The next important support level for Nifty remains at 21,800 followed by the 21,700 level with resistance placed at 22,350," said Mr. Om Mehra, Technical Analyst, SAMCO Securities.

Bank Nifty Outlook

"Bank Nifty came under intense selling pressure in the first half before recovering marginally in the second half to close at 46,594, down 196 points. The Index has formed consecutive doji candles on the daily chart and closed below the 50-Day Exponential Moving Average (DEMA) of 46,604. A similar phenomenon was observed on 28th February where the price closed below the 50 DEMA and recovered sharply post that. The option activity at the 46,500 Strike will provide cues about Bank Nifty's future direction," stated Ashwin Ramani.

"Bank Nifty closed at 46,594.10, down by 2.6% in last week. Bank Nifty fell below the 20-day moving average. The level of 46,000 is now considered as an important support followed by 45,500 levels for Bank Nifty. Nifty PSU Bank index continues to underperform while Nifty Private Bank index remained flat. RSI has slipped below 50 level and this indicates ongoing weakness. If the Bank Nifty closes above the critical level of 47,000 this might resume a bullish stance once again," commented Om Mehra.

Stocks To Buy On Monday

Sumeet Bagadia, Executive Director of Choice Broking, recommended trading guide for the shares of Linde India and Dixon Technologies (India) on Monday, March 18. View the comprehensive technical analysis below, featuring stop-loss levels, entry and target prices.

Linde India

Buy LINDEINDIA in cash @ Rs 6441.10, stop-loss: Rs 6255, target: Rs 6800

LINDEINDIA is currently priced at Rs 6441.10, having recently broken out of a trading range between Rs 5370 and Rs 5900. This breakout indicates a potential continuation of the current upward trend, reflecting positive market sentiment towards the stock.

Moreover, LINDEINDIA is trading above key moving averages, including the 20-day, 50-day, 100-day, and 200-day moving averages. This demonstrates strong positive momentum and suggests the likelihood of further price appreciation. The Relative Strength Index (RSI) is also at 69.50, indicating an upward trend and increasing investor interest in the stock.

For investors contemplating a position, purchasing LINDEINDIA at the current market price of Rs 6441.10 is recommended. To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 6255. This SL level serves as a protective measure against potential losses if the market moves unfavourably.
In summary, LINDEINDIA presents a compelling buying opportunity, with a target price of Rs 6800. Investors are advised to closely monitor the stock's price movement and implement suitable risk management strategies.

Dixon Technologies (India)

Buy DIXON in cash @ Rs 6962, stop-loss: Rs 6760, target: Rs 7340

Dixon Technologies, currently trading at Rs 6962, has recently broken out of an inverted head and shoulders pattern, which is a bullish sign for the stock's future price movement.
Furthermore, Dixon Technologies is trading above important Exponential Moving Averages (EMAs), specifically the 100-day and 200-day EMAs. This suggests a strong upward momentum and indicates the potential for continued price appreciation. The Relative Strength Index (RSI) is at 56, indicating an upward trend and increasing buying interest in the stock.

For investors looking to capitalize on these bullish signals, buying Dixon Technologies in cash at the current market price of Rs 6962 is recommended. To manage risk effectively, setting a stop-loss (SL) at Rs 6760 is advisable. This SL level acts as a protective measure, safeguarding investments in case of an unexpected market downturn.
In summary, Dixon Technologies presents a compelling buying opportunity, with a target price of Rs 7340. Investors should closely monitor the stock's price movement and implement appropriate risk management strategies to protect their investments.

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.