Stocks to Watch: Analyst Sumeet Bagadia Identifies Five Promising Shares

Indian Stock Market Suffers Sharp Sell-Off

March 19, 2024

The Indian stock market experienced a sharp sell-off on Thursday, March 19, resulting in a three-day winning streak coming to an end for benchmark indices Sensex and Nifty 50. Sensex plummeted 2,497 points, or 3.26%, to settle at 74,207, while Nifty 50 dropped 776 points, or 3.26%, to close at 23,002.

Nifty 50 Outlook

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Nifty 50 maintained its downward trajectory, reflecting persistent bearish sentiment in the market. The index began the session at 23,197.75, opening sharply lower by nearly 580 points. Selling pressure intensified immediately after the opening bell, preventing any meaningful recovery. The selling momentum pushed the index to an intraday low of 22,930 before it closed at 23,002.15, marking a steep loss of 775.65 points, or 3.26%.

Technical Analysis

According to Sumeet Bagadia, Executive Director at Choice Broking, the 23,150-23,200 range is acting as immediate resistance, while a firm support zone appears to be developing between 22,850 and 22,900. The daily RSI is at 29.74, indicating that the market is in deeply oversold territory.

Bank Nifty

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The banking benchmark Nifty Bank began the trading session on a notably weak note on Thursday, opening sharply lower with a gap-down of nearly 1,860 points and continuing to face persistent selling pressure during the early hours. The index eventually closed at 53,451, recording a sharp decline of 1,875 points (-3.39%), which reflects strong downside momentum and prevailing risk-off sentiment within the banking sector.

Technical Analysis

Sumeet Bagadia further added that the 53,700-53,800 zone is emerging as an immediate resistance area, while the 53,100-53,200 range continues to act as a crucial support base for the index.

Stocks to Buy

Sumeet Bagadia recommends the following five shares to buy on Friday, March 20:

• Torrent Power: Buy at ₹1446.90, Target ₹1580, Stop Loss ₹1380
• Bharat Heavy Electricals: Buy at ₹251.75, Target ₹275, Stop Loss ₹239
• Linde India: Buy at ₹7011.50, Target ₹7500, Stop Loss ₹6700
• Fertilisers And Chemicals Travancore: Buy at ₹..., Target ₹..., Stop Loss ₹...
• Coal India: Buy at ₹..., Target ₹..., Stop Loss ₹...

Traders are advised to stay cautious and maintain proper risk management.