Stocks To Buy: Day Trading Guide By Sumeet Bagadia On Monday, 12th August

For the second straight week, the Nifty50 and Sensex, the Indian benchmark indices, continued to reflect profit-booking. Sensex closed the week at 79705.91, down 1.58% from the previous week, while Nifty50 finished the week at 24367.50, down 1.42%. Due to a 1% decline in the major indices in the previous week, Dalal Street saw its second consecutive negative end. Last week, foreign institutional investors (FIIs) sold cash for Rs 19,139.76 crore, bringing their monthly selling activity to around Rs 20,360.48 crore so far this month. Domestic institutional investors (DIIs) have been purchasing money like crazy, having bought almost Rs 23,500 crore in August so far. This week alone, they have bought Rs 20,871.10 crore in cash.

Nifty Outlook

Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd said, "The Nifty is attempting to form a near-term bottom around its 50-day moving average (DMA) at 24,000. However, the 20-DMA at approximately 24,525 remains a critical resistance level. If the index manages to sustain above the 20-DMA, we could anticipate a short-covering rally towards the 24,800 level. On the flip side, failing to break above this hurdle could trigger another round of selling. Should the Nifty drop below its 50-DMA, the next support zone is likely in the range of 23,700 to 23,400."

Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd said, "Nifty index has formed a Hammer candle on the weekly charts, indicating a potential further upside move in the coming week after a contraction of a thousand points from its life highs. The next resistance level is at 24,400, and if this level breaks, we could move towards 25000. On the support side, 24000 will act as a major support area which is also near 55 days EMA, and if the index moves below this, we could see a fall towards 23500. The market structure appears strong, suggesting a buy-on-dips approach for Monday."

Bank Nifty Outlook

"Similarly, Bank Nifty is trying to establish a base around its 100-DMA at 50,000 after a period of prolonged underperformance. The 20-DMA at approximately 51,200 will be a significant challenge for any potential bounce-back. If Bank Nifty manages to break above this level, we could see a short-covering move towards 52,000. However, if the index falls below its 100-DMA, fresh selling pressure could push it down towards the 48,500 level," said Pravesh Gour.

"The Nifty Bank index has formed a Doji candle on the weekly charts, suggesting a potential reversal. It traded within a 49,600 to 50,600 range, with strong support near 49,900, backed by the 100 EMA, indicating an imminent upmove. A breach below 49,900 could lead to a drop towards 49,400. Resistance is seen at 50,400, and sustained trading above this level may push the index towards 51,000-51,200. The overall market sentiment is bullish, favoring a buy-on-dips strategy," stated Arvinder Singh.

Stocks To Buy Today

On Monday, August 12, Choice Broking's executive director, Sumeet Bagadia, suggested purchasing two technical stocks.

Eris Lifesciences

Buy ERIS in cash @ 1198.05, stop-loss @ 1155, target @ 1250

ERIS is exhibiting strong bullish momentum, currently trading at an all-time high of 1209.75 levels. The recent breakout above the crucial resistance at 1133 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, ERIS is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 73.88 levels.

For traders, keeping an eye on the strong support near 1155 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, ERIS current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying ERIS and the CMP of 1198.05 with a stop loss of 1155 for the target of 1250.

Coromandel International

Buy COROMANDEL in cash @ 1693.7, stop-loss: Rs 1635, target: Rs 1777

COROMANDEL is presently trading at 1693.7 levels. On the daily chart, the stock has formed a strong bullish momentum candle, signifying a resurgence of strength in its price action.

A robust support level is situated at 1635 levels. This confluence of support factors enhances the stock's stability and resilience.

Furthermore, COROMANDEL is trading above all the important moving averages, which underscores its overall bullish posture and trend.

The Relative Strength Index (RSI), a momentum indicator, is hovering around 67 levels. This RSI reading suggests that the stock possesses considerable strength and also signifies a healthy and sustainable uptrend.

A minor resistance level is noticeable in the vicinity of 1717 levels. Once the stocks successfully surpass this resistance, it has the potential to advance towards the target level of 1777. This could present a favourable trading opportunity for investors and traders alike.

Based on the above analysis we recommend buying COROMANDEL at a CMP of 1693.7 with a SL of 1635 for the target of 1777.

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.