Asian Paints, Bharat Dynamics, MCX, BEL, HDFC Bank, and Aditya Infotech: A Trading Outlook for March 4.

Market Update: March 2, 2024

Equity Benchmarks Plunge 1.2%

The Indian equity market continued its downward trend on March 2, 2024, with benchmark indices plummeting 1.2%. The market breadth weakened, with about 2,501 shares declining against 474 advancing shares on the National Stock Exchange (NSE). The ongoing US-Israel-Iran conflict has weighed heavily on the market, leading to a bearish sentiment.

Short-Term Trading Ideas

Read also: Expert Portfolio Manager Raja Venkatraman Names Top Investment Picks for June 4

Bharat Dynamics (BDL)

• CMP: Rs 1,268
• Strategy: Buy
• Target: Rs 1,340, Rs 1,400
• Stop-Loss: Rs 1,230
• BDL has formed a short-term base near Rs 1,240, with signs of short covering in the futures segment. A bounce is expected above the Rs 1,300 strike, where the highest Call base is present. Buy BDL Futures in the range of Rs 1,260–1,280.

Asian Paints

• CMP: Rs 2,307.1
• Strategy: Sell
• Target: Rs 2,250, Rs 2,200
• Stop-Loss: Rs 2,340
• Asian Paints has been forming lower tops and lower bottoms, indicating a negative trend. The recent uptrend in crude oil prices due to geopolitical tensions is also negative for the stock. Sell Asian Paints Futures in the range of Rs 2,320–2,300.

Read also: MarketSmith India's 4 June Stock Recommendations

Axis Bank

• CMP: Rs 1,372.3
• Strategy: Sell
• Target: Rs 1,340, Rs 1,320
• Stop-Loss: Rs 1,400
• Axis Bank has provided a sell crossover in its short-term momentum indicator, with a clear sign of long unwinding in its futures data. Sell Axis Bank Futures in the range of Rs 1,370–1,380.

Bharat Electronics (BEL)

• CMP: Rs 454
• Strategy: Buy
• Target: Rs 485
• Stop-Loss: Rs 435
• BEL is witnessing sustained support near its 20-day DEMA, with momentum indicators remaining supportive. Traders may consider entering long positions in the Rs 455–445 zone.

Oil India

• CMP: Rs 488
• Strategy: Buy
• Target: Rs 530
• Stop-Loss: Rs 460
• OIL is witnessing sustained support near its 20-day DEMA, with momentum indicators remaining supportive. Traders may consider entering long positions in the Rs 490–480 zone.

Multi Commodity Exchange of India (MCX)

• CMP: Rs 2,501.2
• Strategy: Buy
• Target: Rs 2,700
• Stop-Loss: Rs 2,300
• MCX is currently taking support near its 20-day DEMA, maintaining a constructive technical structure. Momentum indicators further support the bullish setup, signaling positive momentum. Traders may consider entering long positions in the Rs 2,450–2,400 zone.

Aditya Infotech

• CMP: Rs 1,742.5
• Strategy: Buy
• Target: Rs 1,850
• Stop-Loss: Rs 1,700
• Aditya Infotech has exhibited a rounded cup-shaped pattern, with a breakout witnessed as the stock price recorded an all-time high close. This breakout was confirmed by a fresh bullish crossover in the MACD indicators, indicating a shift toward upward momentum. Traders may consider entering long positions in the Rs 1,750–1,720 zone.