Trade Setup | Things To Know Before Market Opening - 04 Mar 2024 Monday

Stock market today: The Indian stock market extended its rally in the special trading session on Saturday last week. The Nifty 50 index added 39 points and ended at 22,378 level, the BSE Sensex went up 60 points and closed at 73,806 mark whereas the Bank Nifty index finished 10 points higher at 47,297 level. However, mid-cap and small-cap witnessed more activity during the special trading session on Saturday as both mid-cap and small-cap indices outshined the key benchmark indices of Dalal Street.

According to stock market experts, the Nifty 50 index has breached the psychological 22,200 barrier and the 50-stock index is now well set to touch the 22,500 mark. They went on to add that the overall trend is positive and predicted that the current bull trend may pull the Nifty 50 index up to the 22,800 level. On stocks to buy today, market experts recommended four stocks to buy or sell today — Glenmark Pharmaceuticals, Data Patterns, Birlasoft, and IEX.

On the outlook for the Nifty 50 index, Vaishali Parekh said, "Nifty witnessed a strong pick-up from the morning session to gain strength as the day progressed and sustained above the 22,200 zone to hit once again the all-time high of 22,419 level to end on a strong note. The index is once again in a strong uptrend with next targets of 22,500 and 22,800 levels expected in the coming days."

On the outlook for the Bank Nifty today, Vaishali Parekh of Prabhudas Lilladher said, "Bank Nifty finally witnessed a strong bullish candle on the daily chart to recover from the 50EMA zone of 46,250 level to close on a strong note near 47,300 levels with sentiment much improved expecting for further rise. The index would have the next targets of 48,400 and 49,700 levels, respectively with near-term support maintained near the 46,200 zone," said Parekh.

"The technical set-up of the Banking stocks (IndusInd Bank- Symmetrical Triangle Breakout, Kotak Bank- Bullish Hammer Candlestick pattern at a strong support zone with a bullish divergence in RSI, SBIN- Flag and Pole Breakout) is pointing towards an extension of the existing trend. The level of 48,000 will be considered as the immediate resistance while the downside seems to be protected at 46,700. From the Auto segment, Auto components & equipment stocks look strong namely Jamna Auto (Symmetrical Triangle Breakout) and Rico Auto (Cup and Handle Breakout). Bharat Forge and Tata Motors have also given a breakout from Symmetrical and Ascending Triangle formation respectively. We retain our positive stance on TCS (Rounding Bottom Breakout) from the IT pack. A couple of stocks from the Metal sector have given a strong breakout namely Hindustan Copper (Ascending Triangle Breakout), Jindal Steel (Cup and Handle Breakout), SAIL (Symmetrical Triangle Breakout), and Tata Steel (Rounding Bottom Breakout)," said Aditya Gaggar, Director of Progressive Shares.

Speaking on the Nifty Call Put Options data, Chinmay Barve, Head of Technical and Derivative Research at Profitmart Securities said, "One of the major total Call open interest was seen at 22500 and 22800 strikes with total open interest of 83936 and 116035 contracts respectively. The strike price of 22400 saw one of the major open interest addition of 13980 contracts," adding, "One of the major total Put open interests was seen at 22200 and 22000 strikes with a total open interest of 138041 and 150439 contracts respectively. One of the major Put open interest additions was seen at 22400 strike which added 28788 contracts in open interest."

On the Bank Nifty Call Put Options data, Chinmay Barve of Profitmart Securities said, "One of the major total Call open interest was seen at 47500 and 48000 strikes with total open interest of 112362 and 136325 contracts respectively in open interest. The strike price of 47300 and 47500 saw some of the major addition of 12400 and 10156 contracts respectively in open interest," adding, "One of the major total Put open interest was seen at 47000 strikes with a total open interest of 157262 contracts. One of the major Put open interest additions was seen at 47300 strike which added 23111 contracts in open interest."

On stocks to buy today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi recommended four stocks to buy or sell today.

1] Glenmark Pharmaceuticals: Buy at ₹928.25, target ₹980, stop loss ₹897.

Glenmark share price, presently trading at 928.25 levels, demonstrates a robust technical position with a notable support base at ₹899 levels, near its 20-day Exponential Moving Average (EMA). The recent close above the initial resistance at ₹920 signals a potential breakout in the stock.

2] Data Patterns: Buy at ₹2796, target ₹2879, stop loss ₹2700.

Data patterns share price has recently exhibited a robust breakout from the critical resistance zone of ₹2680 to ₹2700 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.

3] Birlasoft: Buy at ₹785 to ₹788, target ₹810, stop loss ₹775.

In the short-term trend, Birlasoft share has a bullish reversal pattern, technically retrenchment could be possible till ₹810. So, holding the support level of ₹775 this stock can bounce toward the level ₹810 in the short term. Hence, the trader can go long with a stop loss of ₹775 for the target price of ₹810.

4] IEX: Buy at ₹152, target ₹162, stop loss ₹145.

In the short-term trend, IEX share price has a bullish reversal pattern, technically retrenchment could be possible till ₹162. So, holding the support level of ₹145 this stock can bounce toward the ₹162 level in the short term. Hence, the trader can go long with a stop loss of ₹145 for the target price of ₹162.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of PickStock. We advise investors to check with certified experts before making any investment decisions.

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