Stocks To Buy Today For Intraday: Day Trading Picks By Sumeet Bagadia of Choice Broking On Tuesday, 4th June

Monday's opening gap-up session saw Nifty reach a new high of 23,338 levels before closing near the day's high at 23263 levels by adding 733 points or 3.3% on the back of the Lok Sabha election exit poll results. Bank Nifty had an amazing day, rising 4.07% to close at 50,979.95. After plunging 14.10%, the India VIX wrapped up at 21.13. In anticipation of the BJP regaining power, the broad market witnessed a bullish phase after the general election exit poll. With gains of five to seven per cent in capital goods, PSU banks, oil and gas, power and real estate, all sectoral indices ended the day higher.

Market Outlook

"Technically, Nifty index has formed a hanging man candlestick pattern on top, which requires further confirmation. The index has crossed the barrier of previous high of 23,110 and has managed to stay above it, indicating strength; however, tomorrow comes a major event, the outcome of the general election, which may cause market volatility. Thus, in the immediate term, 23,500-23,800 will serve as resistance points. On the downside, the recent breakout peak of 23,110 will act as first key support for the index, followed by 21 DEMA (Days Exponential Moving Average) 22620," said Neeraj Sharma, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

"The Bank Nifty produced a hanging man candlestick pattern on top, which awaits further confirmation. The index has broken over the 49,975 barrier and continues climbing to new highs. As long as the Bank nifty remains above its breakthrough level, the bull runs might extend to 52,000-52,700. On the downside, trend line support is nearing 50600 levels, with the recent breakout point at 49,975," he further added.

Stocks To Buy Today

Choice Broking's executive director, Sumeet Bagadia, offered recommendations on Tuesday, June 4, addressing buying or selling of stocks for the intraday session.

Union Bank of India

Buy UNIONBANK in cash @ Rs 170, stop-loss: Rs 164.5, target: Rs 181

UNIONBANK is currently trading at Rs 170. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of Rs 161.5 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching Rs 181 levels. On the downside, substantial support is evident near Rs 164.5.

Furthermore, UNIONBANK is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 69.26, signalling an upward trajectory and confirming an increase in buying momentum.

In summary, considering the technical analysis and prevailing market conditions, UNIONBANK appears to present a promising buying opportunity for those targeting a Rs 181 price objective, contingent upon the implementation of prudent risk management measures.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 164.5 to protect the investment in case of an unexpected market reversal.

Thermax

Buy THERMAX in cash @ Rs 5658.6, stop-loss: Rs 5480, target: Rs 5959

The analysis of THERMAX on the daily chart indicates a bullish trend, with the stock exhibiting a higher high and higher low pattern. The recent breakout above the neckline, supported by increased trading volume, suggests a potential upward movement. The Relative Strength Index (RSI) at 76.08 further confirms positive momentum. Importantly, THERMAX is trading above its critical 20-day, 50-day, and 200-day Exponential Moving Average (EMA) levels, reinforcing the bullish sentiment.

In light of this analysis, we recommend a long trading position in THERMAX. Investors are advised to buy THERMAX in the cash segment at the current market price (CMP) of 5658.6. The target for this trade is set at 5959, with a suggested stop loss at 5480 to manage potential risks. This recommendation is based on the anticipated continuation of the bullish trend indicated by the technical chart patterns and indicators.

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.