Fair today: Amid a volatile trading session on Monday, the benchmark Nifty 50 struggled to hold on to gains as it closed 0.03% lower at 24,141.30. The S&P BSE Sensex also ended almost flat at 79,496.15. Bank Nifty gained 0.61% to end at 51,876.75, sheltering the market decline that was well supported by IT stocks. All other sectoral indices declined, with metals and pharmaceuticals seeing sharp declines. Broader indices were also corrected for small caps, with deeper corrections than midcaps.
Trading setup for Tuesday
The Nifty daily chart indicates that bulls could not sustain the upward bounce, although there was no sharp downward momentum either. This market action could give bulls hope for a comeback from the lows. Deepak Jasani, Head of Retail Research at HDFC Securities, said the underlying trend of Nifty remains choppy with a weak bias. Nifty is moving in a wider high-low range of 24300/24600-23800 levels.
Bank Nifty is now likely to continue the positive momentum towards the 52500 – 52850 zone in the coming trading sessions, and on the other hand, 51300 – 51200 will act as a crucial support zone, said Jatin Gedia, technical research analyst at Sharekhan.
Global Market Outlook and Second Quarter Results Today
European markets gained, but Asian markets remained mixed. In an effort to support economic growth, China approved the refinancing of local government debt worth $839 billion. However, this fell below expectations and failed to enthuse global markets. FIIs have been selling shares for the last 29 days in a row. Based on mixed global factors and subdued quarterly results, markets are expected to remain sideways. The stock-specific action could continue due to the latest set of second-quarter earnings announced this week. Top performers on Tuesday include BSE, Motherson, Zydus Life and Hyundai Motors.
Stocks to buy today
Sumeet Bagadia, executive director at Choice Broking, recommended two stock picks for today. Ganesh Dongre, senior manager of technical research at Anand Rathi, has suggested three stock ideas.
Sumeet Bagadia’s Stocks to Buy Today
1.Coforge Ltd- Bagadia recommends purchasing Coforge at ₹8006.9 Maintain stop loss ₹7777 for a target of ₹8500
Coforge is showing strong bullish momentum and is currently trading at an all-time high of 8079.95. The recent break above the crucial resistance at 7750 levels is a major technical development, supported by robust trading volumes, reinforcing the stock’s strength. The breakthrough signals a possible continuation of the upward trend and provides an optimistic outlook for investors.
2. Ramco Industries Ltd – Bagadia recommends buying Ramco Industries at ₹Maintain 290.5 stop loss ₹280 for a target price of ₹310
Ramco Industries’ daily chart analysis provides a favorable outlook for the coming week, indicating a steady move higher. Notably, the stock has produced a notable higher high and higher low pattern, and the company’s recent upward move has effectively breached the neckline, with a significant break above the key resistance level around 270. This break signals the possibility of significant follow-through . upward rise in stock price.
Ganesh Dongre’s Stocks to Buy Today
3.HDFC Bank Ltd– Dongre recommends buying HDFC Bank at ₹1764 Keep stop loss ₹1730 for a target price of ₹1810
The stock has a substantial support at Rs.1730, marking a crucial moment in recent trading. Currently at Rs.1763, the stock has seen a definitive reversal in price action, indicating a possible continuation of its upward momentum. Traders eager to take advantage of this opportunity should consider buying and holding the stock, setting a prudent stop-loss ₹1730. The expected target for this trade is Rs.1810, which represents the next significant resistance level. This strategy positions traders favorably to benefit from the stock’s expected rally in the coming weeks
4. IndusInd Bank Ltd- Dongre recommends buying IndusInd Bank at ₹1058 with stop loss at ₹1030 for a target price of ₹1610.
The stock’s recent short-term trend analysis has revealed a notable bullish reversal pattern. This technical pattern suggests the possibility of a temporary retracement in the stock’s price, which could potentially reach around Rs. 1610. Currently, the stock is maintaining a crucial support level at Rs.1030. Considering the current market price of ₹1058, a buying opportunity presents itself. This suggests that investors could consider buying the stock at the current price, anticipating an increase towards the identified target of Rs. 1610
5. GAIL (India) Ltd– Dongre recommends purchasing GAIL from ₹203 Keep stop loss ₹195 for a target price of ₹220
On the daily chart of this stock, there is a breakout at Rs. A price level has been observed, indicating a potential upward trend. Complementing this breakout, the Relative Strength Index (RSI) is still rising, indicating increasing buying momentum. Given these technical indicators, traders may consider buying on dips and getting into the stock at a lower price. To manage risk, a stop loss of Rs.195 is recommended. The price target for this strategy is Rs.220 in the coming weeks, which indicates a potential gain as the stock continues its upward trajectory.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms, and not of Mint. We recommend that investors consult certified experts before making any investment decisions
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