Buy/Sell: 3 Swing Trading Stock Picks By VLA Ambala On Thursday, 14th March

The benchmark index Nifty had been in a wide range of 430 points, witnessing a notable downturn in momentum. During the day, both Sensex and Nifty experienced a drop, closing at 1.23% and 1.51%, respectively.

In this recent session, the selling pressure intensified during the day. As a result, the Nifty slumped below 22,000 despite having a positive start and favourable data on CPI and industrial production growth.

By the end of Wednesday, Adani Enterprises, Coal India, and Adani Ports were among the major losers, while ITC, UltraTech Cement, and HCL Technologies were among the gainers. In addition, all sectoral indices concluded the day in the red, with realty, media, and PSU banks witnessing a slump of 4-6%. However, the IT sector remained persistent.

During the session, the Nifty Smallcap 100 was the most affected index as it fell 4.8% to a 12-week low, breaching the 15,000 mark. This comes amid SEBI’s concerns related to high speculations in small-cap and mid-cap segments.

Notably, the trend of sell-off continued for three consecutive days, with major stocks in the index trading at a discounted rate of 10-45%. In this situation, traders must continue to hedge their portfolios, especially those dealing in F&O, to avoid uncalculated risks, said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder – Stock Market Today (SMT).

Review of Stock Market

The Indian markets are at an all-time high amid higher valuations and profit-booking sessions. It is likely to get more intense with the Lok Sabha elections inching closer and anti-EVM protests gaining ground. In addition, the execution of CAA by the central government, the Supreme Court’s verdict on electoral bonds, and SEBI’s new norms on small and mid-cap funds are likely to add to the concerns. In addition, cross-border concerns such as an extra 10k Troop deployment at Indo-China Border lines and India Nuclear testing at Pokhran may further aggravate investor sentiment, added the analyst.

Notably, the high rate of inflation is a factor that is bothering the entire global market. Besides this, the Indian market tends to be affected heavily by the US market, which has recently announced a surge in inflationary levels, delaying hopes for rate cuts further. It may prompt FIIs to withdraw money from the Indian markets and invest on their own to receive higher returns, which could widen the interest rate gap between the US and India. The current overbought market just needs a reason to correct, and all these concerns are enough to fuel negative sentiment among investors, VLA Ambala further stated.

Market View for 14th March 2024

For Nifty, the key support levels for the next trading session will be 21900 and 21790, whereas resistance is likely to be observed at 22080 and 22150. The banking index could find key support at 46570 and 46400, with 47950 and 47150 serving as major resistance points, commented V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder – Stock Market Today (SMT).

Stocks To Buy On 14 March 2024

ABB

ENTRY (SELL) – Rs. 5660-5590
TARGET – Rs. 5500/55400/5300
Stop Loss: Rs. 5730
SPARC-BE

ENTRY (SELL) – Rs. 360-357
TARGET – Rs. 340/330
Stop Loss – Rs. 375
SBIN

ENTRY (SELL) – Rs. 750-747
TARGET – Rs. 740/730/720
Stop Loss – Rs. 765
Note: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behavior, and technical analysis.