Stocks To Buy: Day Trading Guide By Sumeet Bagadia On Wednesday, 7th August

Tuesday saw a rise in domestic benchmark indices as the global market recovered. The Nifty had a strong start but lost all of its gains when it could not maintain its positive pace. Nevertheless, it closed at 23,993, close to the psychological hurdle of 24,000, and the day ended poorly. The INDIA VIX, an indicator of volatility, dropped by 8% and settled at levels close to 18.74. Heavy profit booking resulted from the Bank Nifty index's failure to maintain its upward momentum after it started off well. At 49,748 levels, Bank Nifty ultimately ended the day lower than it started. Market observers will be keenly observing this week's RBI monetary policy and the ongoing results season, which might lead to market volatility.

Market Prediction Today

Rajesh Bhosale, Equity Technical Analyst, Angel One said, "Technically, there hasn't been a significant change in price levels, but from the morning highs, the momentum is clearly with the bears, who are using any bounces as opportunities to sell. On the daily chart, prices remained within the range of the previous candle, which now serves as a key trading range. The lower end of Monday's candle aligns with the 50 EMA, while the upper end coincides with the 20 EMA and a bearish gap. Although the momentum favors the bears, the hourly indicators are in the oversold zone, suggesting a possibility of intermittent rebounds cannot be ruled out. Therefore, any such bounces, similar to today, should ideally be viewed as selling opportunities."

"As for key levels, 24250 appears to be immediate resistance, while the 24350 - 24400 range remains a challenging barrier for the bulls. Only a close above this range could potentially revive some positive momentum in the market. On the downside, immediate support is seen at 23900 - 23850, below which the Nifty may slip towards the 23600 - 23550 levels. Traders are advised to monitor these levels closely and adjust their trades accordingly, while also keeping an eye on global developments, as our markets are particularly influenced by global momentum," he further added.

Stocks To Buy Today

On Wednesday, August 7, Sumeet Bagadia, executive director of Choice Broking, encouraged buying two technical stocks.

Jubilant FoodWorks

Buy JUBLFOOD in cash @ 597.75, stop-loss: 580, target: Rs 640.

The stock is currently trading at 597.75 and has exhibited some encouraging signs for potential investors. It successfully breached the 592 level on a closing basis, a key technical level and did so with robust trading volumes, suggesting underlying strength in the stock.

Furthermore, the stock is currently trading above its 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs). This indicates a positive trend in the short, medium, and long-term, respectively.

There is a minor resistance level at 615 which is also close to its all-time high levels, but if the stock can overcome this barrier, it may have the potential to reach 640 and potentially higher. This breakout could signify a bullish move in the stock.

Additionally, the Relative Strength Index (RSI), a momentum indicator, is hovering around 59.24. This suggests that there is strength in the stock's current trend.

With a short to medium term outlook one can buy JUBLFOOD at CMP of 597.75 with a SL of 580 for a target price of 555.

Colgate-Palmolive (India)

Buy COLPAL in cash @ 3390.65, stop-loss @ 3255, target: Rs 3660

Colgate-Palmolive (COLPAL) has exhibited a noteworthy rebound from the support level of 3300, currently trading at approximately 3390.65 levels. The stock's positioning above its 20 - Day, 50-Day, and 200-Day Exponential Moving Averages (EMA) signals a positive trend, reflecting strength in its current trajectory. The momentum indicator, Relative Strength Index (RSI), comfortably rising to 79.33 levels, underscores the stock's robust performance.

A minor resistance is observed at 3425 levels. A successful breach of this level could propel COLPAL towards the target of 3660 and beyond, suggesting further potential upside.

Investors and traders may find this technical analysis valuable for assessing COLPAL's current strength and potential future movements. However, it's essential to consider broader market conditions and conduct thorough research before making investment decisions.

Based on the above analysis we expect COLPAL to move higher towards 3660 and hence we recommend buying COLPAL at CMP of 3390.65 with a SL of 3255.

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.