The Nifty saw a modest rise of 0.17% at 22,497.90 at the close of the previous session. While Nifty Bank completed the day at 47,853.95, recording a drop of 0.75%, the index started with a gap-down but recovered from lower levels to conclude the day in positive territory. The index hit an intraday low of 47,702.90 after breaking through its previous swing low of 47,841. A modest boost in risk perception was indicated by the India VIX, the market’s fear measure, which increased by 0.63% to 14.07. However, volatility is probably going to stay constrained as long as VIX stays below the crucial 15-mark, enabling traders to have a cautiously positive perspective.

Nifty Outlook

“Nifty index is showing signs of resilience despite global headwinds and a sharp gap-down opening. A strong recovery from the 22,200-22,300-support zone has reinforced bulls’ dominance at lower levels. However, for an extended bullish momentum, the index must sustain above 22,500 and clear its previous day’s close convincingly. This demand zone, fortified by heavy put writing, has emerged as a crucial safety net for the index. However, the 22,700-22,800-resistance zone remains a major obstacle due to persistent call writing and technical barriers. Bulls need to protect the 22,200 level to create a foundation for potential upside moves. A decisive breakout beyond the 22,700-22,750 range is required to trigger a sustained rally, but continued call writing and resistance at higher levels may cap immediate upside potential. Given the market’s hesitant momentum, a ‘Range Trading’ strategy appears to be more suitable in the current market environment. As long as Nifty holds above 22,200, buying on dips could be a favourable approach, with 22,750 acting as the key resistance level that must be breached for a breakout,” said Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities.

Bank Nifty Outlook

“Nifty Bank index is teetering on the edge, hovering near a critical support zone, with negative global cues and sectoral weakness adding to the uncertainty. Despite this, bulls have managed to defend 47,800, showing resilience at lower levels. For a sustained uptrend, the index must reclaim 48,200 and build momentum above this resistance. The 47,800-48,000 zone remains a key demand area, supported by strong put writing activity, reinforcing a short-term base for the index. However, call writers have fortified the 48,500-49,000 resistance zone, signalling a tough supply area that could cap any sharp rallies. A convincing breakout above 48,200 is essential for bullish momentum to resume, while persistent call writing at higher levels remains a major hurdle for sustained upside movement. Considering the current cautious sentiment and limited directional momentum, a range-trading strategy appears optimal. As long as the index holds above 47,800, buying on dips remains a viable strategy, while 48,550 remains a key resistance ceiling for further upside potential,” commented Dhupesh Dhameja.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, recommended purchasing two stocks on Wednesday, March 12, after the Nifty’s daily RSI reached 40, signalling a dearth of positive momentum.

Action Construction Equipment

Buy ACE in Cash @ Rs 1169.30, Stop-loss @ 1128, Target @ 1251

ACE is currently trading at ₹1,169.30, demonstrating strong upward momentum. On the weekly timeframe, the stock has formed a bullish hammer pattern, while the daily timeframe shows a bullish engulfing candlestick, indicating a reversal from lower levels and a resurgence in bullish sentiment. Additionally, the stock has closed above its 20-day EMA and is approaching the 50-day and 200-day EMAs. A decisive close above these levels would further strengthen the bullish outlook.

The recent breakout above the key resistance level of ₹1,200 highlights the stock’s potential for further appreciation. If the current trend continues and additional resistance levels are breached, ACE could target ₹1,251 in the near term. On the downside, immediate support is observed at ₹1,150, providing a cushion against short-term pullbacks. The Relative Strength Index (RSI) currently stands at 49.54 and is trending upward, signaling increasing buying momentum.

Given the strong technical setup and positive market indicators, ACE presents a compelling buying opportunity. Traders may consider entering at the current price of ₹1,169.30, with a target of ₹1,251, while adhering to disciplined risk management practices. To manage risk effectively, traders are advised to set a stop-loss at ₹1,128 to safeguard against unexpected market reversals.

Carborundum Universal

Buy CARBORUNIV in Cash @ Rs 988.15, Stop-loss @ 954, Target @ 1057

CARBORUNIV is showing early signs of recovery after a prolonged downtrend and is currently trading around ₹988.15. Over the past seven trading sessions, the stock has surged from lower levels, finding strong support at ₹810 and demonstrating bullish momentum. This reversal is further reinforced by rising trading volumes and the formation of a strong bullish candlestick, indicating increased buying interest among investors.

A sustained move above the critical resistance level of ₹1,000 would serve as an ideal entry point for long positions, with a potential upside target of ₹1,057. The Relative Strength Index (RSI) stands at 51.65 and is trending upward, signaling an improving uptrend with room for further gains. Additionally, the stock has closed above its 20-day EMA and is approaching the 50-day and 200-day EMAs. A decisive close above these levels would further validate the bullish outlook.

Traders may consider entering at the current price of ₹988.15, with a stop-loss set at ₹954 to manage risk effectively and an upside target of ₹1,057. While the trade setup appears favorable, it is essential to remain cautious of short-term volatility and adhere to disciplined risk management strategies for successful trade execution.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.