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ABFRL
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Please add the mentioned stocks to your watchlist for Monday 4 March 2024. If you require information on buy/sell recommendations or option call/put levels, kindly reach out via WhatsApp at 9039542248.๐๐
ABFRL
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Market Performance on March 1:
Sensex surged 1.72% to 73745, while Nifty rose 1.62% to 22338.
Nifty Metal was the top gaining sector, rising nearly 2%.
Nifty Media fell the most, down 7%.
Among the biggest gainers on the Nifty were Tata Steel, L&T, JSW Steel, Titan Company, and IndusInd Bank.
Losers included Dr. Reddy's Laboratories, Sun Pharma, HCL Technologies, Infosys, and Britannia Industries.
Sector Performance:
Metal index surged 4%.
Auto, bank, capital goods, and oil & gas indices rose by 2% each.
Healthcare index declined by 1%.
The upcoming March F&O series is anticipated to witness notable volatility on Dalal Street, with a mix of bullish and bearish swings. Historically, the market has closed the March derivatives series higher and lower on five occasions each, indicating the potential for significant market movements.
FIIs Positioning:
Foreign Institutional Investors (FIIs) have commenced the month with relatively light positions, with index longs standing at 35 percent. Additionally, there have been thin rollovers observed in both the Nifty and the Nifty Bank.
Market Sentiment:
Despite the cautious start, there is a prevailing sentiment leaning towards the positive side, driven by factors such as the strong domestic GDP reading and controlled fiscal deficit. The recent recovery in Wall Street, marked by three consecutive days of gains in the Dow Jones Industrial Average, adds further support to the optimistic sentiment.
Market Expectations:
Considering past trends, there's a possibility that the market may incline towards positive territory in the March series, especially with general elections scheduled for later in the year. Historical data shows gains of approximately six percent and 6.5 percent in comparable series in 2014 and 2019, respectively, leading up to the elections.
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The Nifty started the day on a flat note and remained consolidated throughout, with a notable surge observed in the final trading hour, resulting in a positive closure with a gain of approximately 32 points. Maintaining its stance, the Nifty sustained within the crucial support range of 21900 – 21850, aligning with the 20-day moving average and the 50% Fibonacci retracement level from the recent rise of 21530 – 22249. Over the past nine trading sessions, prices have predominantly traded within the range of 21800 – 22300. However, the momentum indicators on both daily and hourly time frames are displaying mixed signals, suggesting a continuation of the range-bound movement. While the index remains cautiously optimistic, volatility is anticipated in the upcoming sessions. Key support is expected around 21860 – 21800, while immediate resistance is seen at 22230 – 22250 from a short-term perspective. On the other hand, the Bank Nifty found support within the range of 45800 – 45600 and staged a recovery. The sustainability of this rebound hinges on today’s low (45660) not being breached, with further upside targets anticipated around 46750 – 46900.
Maruti and Titan, highlighted at the top of our stock suggestion list in yesterday's post, have emerged as top gainers on NSE. For more details, please visit: https://niftytipsniftylevels.blogspot.com/2024/02/stocks-to-trade-tomorrow-on-28-feb-2024.html
Investing in the stock market for the long term requires careful consideration and research. To assist you in making informed decisions, we've curated a list of the top 10 shares to buy today for their potential long-term growth prospects.
Reliance Industries Limited (RIL):
RIL stands as a cornerstone of India's economy, with diversified interests across various sectors like energy, petrochemicals, telecommunications, and retail. Its robust business model and continuous expansion make it a compelling long-term investment choice.
HDFC Bank:
As one of India's leading private sector banks, HDFC Bank has consistently demonstrated strong financial performance and prudent management. With a widespread network and a focus on technological innovation, HDFC Bank remains well-positioned for sustained growth in the long run.
Infosys:
Infosys is a global leader in consulting, technology, and outsourcing services. With a reputation for excellence in delivery and a commitment to innovation, Infosys continues to capitalize on emerging trends in digital transformation, making it an attractive pick for long-term investors.
Tata Consultancy Services (TCS):
TCS is another frontrunner in the IT services industry, renowned for its expertise in providing cutting-edge solutions to clients worldwide. With a strong emphasis on research and development, TCS is poised to maintain its competitive edge and deliver value to shareholders over the long term.
ICICI Bank:
ICICI Bank is a prominent player in India's banking sector, offering a wide range of financial products and services to its customers. With a focus on innovation and customer-centricity, ICICI Bank is well-equipped to navigate the evolving landscape of the financial industry and deliver sustainable growth.
Bharti Airtel:
Bharti Airtel is a leading telecommunications company with a strong presence in India and other emerging markets. With the proliferation of digital connectivity and increasing demand for data services, Bharti Airtel is positioned for long-term growth, driven by its robust network infrastructure and innovative offerings.
Axis Bank:
Axis Bank is a prominent player in India's banking and financial services sector, known for its customer-centric approach and robust risk management practices. With a focus on expanding its digital capabilities and enhancing operational efficiency, Axis Bank is poised for long-term success.
Larsen & Toubro (L&T):
L&T is a diversified conglomerate with interests in engineering, construction, and infrastructure projects. With a proven track record of executing large-scale projects and a strong order book, L&T is well-positioned to benefit from India's infrastructure development and industrial growth over the long term.
State Bank of India (SBI):
SBI is the largest public sector bank in India, offering a comprehensive range of banking and financial services to its customers. With its extensive network and focus on digital transformation, SBI is poised to capitalize on India's economic growth and deliver value to its shareholders in the long run.
Hindustan Unilever Limited (HUL):
HUL is a leading fast-moving consumer goods (FMCG) company in India, with a diverse portfolio of household and personal care products. With a strong brand presence and a focus on innovation, HUL is well-positioned to capitalize on India's growing consumer market and deliver sustainable long-term growth.
By considering these top picks and conducting further research, investors can build a well-diversified portfolio with the potential to generate attractive returns over the long term. However, it's essential to remember that investing in the stock market carries inherent risks, and thorough due diligence is crucial before making any investment decisions.
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The Nifty experienced another session of volatility, ultimately closing marginally higher around the level of 22,198. Despite a flat start, the index oscillated within a range throughout the day. The mixed trend across sectors saw realty, IT, and auto sectors gaining ground, while financials and energy sectors faced pressure. The broader market performance remained muted, with both ending nearly flat.
Technical Analysis:
The recent price action suggests that bulls are consolidating their positions at record-high levels, awaiting fresh triggers. Buoyancy in the global market, particularly in the US, is encouraging, but alignment in heavyweight sectors, especially banking majors, is awaited for fresh momentum.
The Nifty has been consolidating within a broad range of 21,900 to 22,300 over the past few trading sessions. Bollinger bands contraction indicates range-bound price action. The index held onto the support zone of 22,100 – 22,070, where the 40-hour average was situated. An hourly momentum indicator has triggered a positive crossover, signaling a buy, thus intraday dips are likely to be bought into.
Support and Resistance Levels:
Support: 21,900
Resistance: 22,300
Bank Nifty Overview:
The Bank Nifty underwent correction from its recent peak, finding support at the 21-day Exponential Moving Average (21EMA) on the daily timeframe. The index has been trading in a range between 46,300 to 47,400. In today’s session, it held onto the 40-day average (46,300) and bounced back.
Technical Analysis:
The battle between bulls and bears may persist for a few more days or until a decisive breakout from the range of 46,500-47,000 on a closing basis. A significant decline below 46,500 could lead the index towards 45,500 in the short term. Conversely, a sustained trade above 47,000 might propel the index towards 47,700.
Support and Resistance Levels:
Support: 46,300
Resistance: 47,000
Conclusion:
Both Nifty and Bank Nifty experienced volatility but managed to end the day with marginal gains. Nifty remains range-bound with support at 21,900 and resistance at 22,300, while Bank Nifty shows signs of positive momentum with support at 46,300 and resistance at 47,000. Traders are advised to adopt a "buy on dips" approach with a focus on stock selection amid ongoing consolidation in the markets.
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The domestic market experienced a
momentary pause on Friday after hitting another record high earlier in the day,
driven by positive signals from global markets. Notably, strength was observed
in the capital goods and industrial sectors, supported by advancements in
manufacturing and services. Despite nearing the end of the earnings season, the
market remains buoyant, riding on pre-election momentum. However, concerns
persist over rising crude oil prices, surging US bond yields, and stretched
valuations, which may continue to prompt selling by Foreign Institutional
Investors (FIIs).
Key
Highlights:
The Nifty opened with gains and
consolidated throughout the day to close marginally in the red, down
approximately 4 points.
After reaching an all-time high of 22,297
in early trade, weakness in banking stocks weighed on the benchmark, closing at
22,212 on February 23.
Sensex also closed flat at 73,142, while
broader indices Nifty Midcap 100 and Nifty Smallcap 100 gained each, outperforming benchmarks.
Nifty ended flat but above the 22,200
level, forming a higher high and higher low series on both daily and weekly
charts.
The consolidation phase, lasting over a
month, may soon see a breakout or breakdown, with the former being more likely.
However, for a significant rally, Nifty
needs to give a decisive breakout above 22,250.
The range of 22300- 22400 is now
identified as the demand zone, and a slide below this range could push Nifty
back towards the 22,000 levels.
Technical
Analysis:
Nifty closed marginally in the red,
exhibiting consolidation around all-time highs on the daily charts.
Formation of a higher high and higher low
series on both daily and weekly charts suggests underlying bullish sentiment.
A decisive breakout above 22,250 is
crucial for sustaining upward momentum and triggering a significant rally.
The identified demand zone of 22150-
22050 serves as a critical support level, with a breach potentially leading to
a downward movement towards the 22,000 mark.
Conclusion:
The Nifty market continues to show resilience despite temporary pauses, with bullish sentiment prevailing amid global market cues and pre-election momentum. Investors are closely monitoring developments, particularly regarding potential catalysts for a breakout from the current consolidation phase. While uncertainties regarding crude oil prices, US bond yields, and valuations persist, the market remains cautiously optimistic. A decisive move above 22300 could signal a further upward trend, while maintaining support above the 22,100 - 22200 range is crucial for sustaining current momentum.
This report aims to provide insights into the recent performance of the Nifty market and key factors influencing its trajectory, aiding investors in making informed decisions in the current market environment.
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In a volatile trading session, the Indian benchmark indices closed positively, with the Nifty surpassing the 22200 mark. The Sensex concluded up by 535 points at 73158, while the Nifty rose by 162 points to reach 22217. Market fluctuations were pronounced, but ultimately ended the session with a nearly one percent gain. Initially starting flat, the Nifty dipped lower following Wednesday's decline, testing the support zone of the 20-day exponential moving average (DEMA). However, sentiments shifted dramatically in the latter half, witnessing a sharp recovery in heavyweight stocks across various sectors. Consequently, the Nifty not only recovered losses but also reached a new record high. Key gainers included IT, auto, and metal sectors, while banking stocks remained largely unchanged. The broader indices also saw relief, recording gains in the range of 0.7% to 1.06%. The upward momentum suggests bullish control, advocating for a "buy on dips" strategy until the Nifty decisively breaks below the 21,800 level. Nonetheless, mixed trends persist within sectors, urging caution in stock selection and a preference for counters demonstrating higher relative strength.
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Introduction:
The Nifty, India's benchmark stock index, has shown resilience and strength in recent trading sessions, with the index consistently trading above the crucial 22,000 mark. As we look ahead to the upcoming week, it's essential to assess the current market sentiment, key factors influencing the Nifty's movement, and potential scenarios for traders and investors.
Current Market Sentiment:
The market sentiment remains cautiously optimistic, buoyed by the Nifty's sustained gains over the past four consecutive sessions. Positive momentum has been observed across various sectors, including banking, IT, auto, and realty. However, investors are also mindful of potential bouts of intra-day volatility, particularly with global events such as the US Federal Reserve's decisions on interest rates being closely monitored.
Technical Analysis:
Support and Resistance Levels: The Nifty has shown strength in reclaiming the 22,000 mark, with further upside potential towards the 22,500+ zone. However, sustainability above 22,150 is crucial to signal the end of consolidation and resume the upward momentum. On the downside, support levels are identified at 22,150 and 22,750.
Moving Averages: The Nifty has consistently closed above the 21EMA in recent days, indicating a positive trend. This suggests continued bullish sentiment in the market.
RSI Indicator: The momentum indicator RSI has experienced a bullish crossover, signaling potential further upward movement. In the short term, the index may target 22,200, with a potential move towards 22,600 upon surpassing this level.
Key Factors to Watch:
Global Indices: The performance of global indices, especially the US market, will remain a key factor influencing the Nifty's movement. Positive cues from global markets could provide further support to Indian equities.
US Federal Reserve Decisions: Investors will closely monitor the US Federal Reserve's decisions on interest rates, as this could impact market sentiment and investor confidence.
Sectoral Performance: Traders should keep a close watch on sectoral performance, particularly in banking, IT, auto, and realty sectors, which have shown strength in recent sessions. Any sector-specific developments or news could influence market dynamics.
Conclusion:
In conclusion, the Nifty's performance in the upcoming week is likely to be influenced by a combination of global factors, sectoral performance, and technical indicators. While maintaining a positive yet cautious stance, traders and investors should closely monitor key support and resistance levels, as well as global market developments, to make informed decisions in the dynamic market environment.
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