Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Friday, 28th July

The Nifty closed on Thursday at 19659.90, down 118 points or 0.60 percent, and the Sensex ended at 66266.82, down 0.66 percent amid hawkish commentary from the US Fed. Bank Nifty ended the session at 45679.30, a 0.83 percent loss. The Nifty Midcap and Small Cap also ended on a red note. M&M, Tech Mahindra, Tata Consumer Products, Nestle India, and Britannia Industries were the top Nifty losers, while Cipla, Sun Pharma, Divis Labs, Apollo Hospitals, and Bharti Airtel were the top gainers. On a sectoral level, the pharma index climbed by 3% while the real estate index climbed by 2%. The auto, oil & gas, bank, and FMCG indices all fell by 0.5 to 1% apiece.

Nifty Prediction

Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said, "The Nifty witnessed selling pressure throughout the day and closed in the negative down ~120 points on Thursday. On the daily charts, we can observe that the Nifty has faced resistance from the 61.82% Fibonacci retracement level (19850) and started the next leg of the fall.The daily as well as hourly momentum indicator has a negative crossover which is a sell signal.

Thus, both price and momentum indicators are suggesting that there could be some weakness in the short term. The daily Bollinger bands are also contracting, which points towards consolidation in the short term and thus we change our short-term stance from positive to sideways and the range of consolidation is likely to be 19900 - 19500. In terms of levels, 19550 - 19500 shall act as a crucial support zone, and on the upside 19850 - 19900 shall act as an immediate hurdle zone."

Bank Nifty Prediction

"Bank Nifty also witnessed a correction from the resistance zone 46300 - 46400 where the previous swing highs were placed. The daily momentum indicator has triggered a fresh negative crossover which is a sell signal. Thus, until the bank Nifty does not manage to sustain above the 46300 - 46400 zone we can expect it to slip down to 45330 - 45300 levels where support in the form of the 20-day moving average is placed," said Jatin Gedia.

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy today i.e. Friday, 28th July.

Bank of Baroda

The stock is trading in a broad-based channel with an accumulation phase. Higher High- Higher Low formation is witnessed in the weekly charts. Positive crossover in MACD is observed while RSI is sustaining above 55 levels. In the last couple of days, delivery volume has increased significantly. Price is sustaining above 20 EMA confirming a bullish trend.

One can initiate a long position at cmp 199.2 for the target price of 206. SL can be kept as 195.

United Spirits

Buy MCDOWELL_N in cash @ Rs 996.95, SL @ Rs 975, target price Rs 1050

MCDOWELL_N has bounced back from the support of 976 levels which was prior a resistance. Currently, the stock is trading around 996.95 levels. The stock is trading above all important moving averages indicating strength. The RSI indicator is also trading near 63 levels which will help the stock to move upwards. A small resistance is placed at 1000 levels. Once stock closes above the mentioned resistance level it can move towards the new all-time high level of 1050 and above.

Based on the above analysis MCDOWELL_N can be purchased at a CMP of 996.95 with a SL of 975 levels for the target of 1050 levels.

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.