Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Monday, 24th July

On Friday, the Indian stock market broke a six-day streak of peaks and ended on a red note. While the BSE Sensex plunged 887 points and ended at 66,684 levels, the NSE Nifty dropped 234 points and settled at 19,745 levels. The Bank Nifty index dropped 111 points to conclude the day at 46,075. On the Nifty pack, Infosys, Tech Mahindra, HCL Technologies, HUL, and Reliance Industries were the most notable losers for the day, while L&T, ONGC, NTPC, SBI, and BPCL were the top gainers.

Market Outlook

Commenting on the market outlook for the next week, Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd said, "We expect the markets will take further cues from ongoing Q1FY24 results, domestic and global macroeconomic data, global market trends, crude oil prices, FII/DII activities. Ongoing quarterly earnings season will be in focus, as many major companies will be announcing their quarterly numbers in the coming week such as Canara Bank, Federal Bank, Tata Steel, Asian Paints, Bajaj Auto, L&T, SBI Life, Tata Motors, Axis Bank, BPCL, Cipla, Dr. Reddy, Tech Mahindra, BEL, Nestle, Marico and many more."

Commenting on the Nifty prediction, Arvinder Singh Nanda said, "The Nifty index extended its winning streak for the fourth consecutive week to form a fresh all-time high at 19991.85. The significant surge in prices has been attributed to substantial buying activity by FIIs, who injected 4766.40 crore rupees into the cash segment, and improved global sentiments. The Nifty prices seem poised to continue their upward trajectory toward the levels of 20100 and 20300. In the event of any correctional fall, approximately around the 19550 mark, it may present an opportunity to initiate fresh long positions. It is worth noting that a short-term reversal in the bullish trend will only occur if prices drop below the crucial support level of 19480, which is in the vicinity of rising trend line support on the hourly chart."

On the Bank Nifty prediction, Arvinder Singh Nanda said, "Bank nifty prices are comparatively looking stronger than nifty. Prices increased by nearly 2.80% to hit a fresh all-time high at 46369.50. Prices are currently trading above their short-term moving averages, while the MACD indicator has also generated a bullish crossover. We expect prices to trade further higher towards 46500 and 46800. We believe any fall close to 45500 may provide an opportunity to establish fresh long positions."

Nifty Prediction

Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said, "On the daily charts, we can observe that the nifty has held on to the zone of 19680 - 19700 where support in the form of the 50% Fibonacci retracement level(19677) of the rise from 19361 - 19992 and the 40-hour moving average is placed. During the current up-move, the 40-hour average has always absorbed the selling pressure and held on to start a fresh leg of up-move. We believe that there can be some consolidation considering the sharp rise it has witnessed in the last few trading sessions. Overall, the uptrend is still intact, and we believe that this dip is a pullback and not a trend reversal. In terms of levels, 19677 - 19700 shall act as a crucial support zone, and on the upside 19880 - 19900 shall act as an immediate hurdle zone."

Bank Nifty Prediction

"Bank Nifty witnessed a volatile trade today. Though it was volatile it traded in a range and closed down ~110 points. The hourly momentum indicator has triggered a negative crossover which can lead to consolidation in the short term, however, the overall uptrend is still intact and we believe that this dip is a pullback in the overall up move and not a trend reversal. On the upside we expect the Bank Nifty to target levels of 46500 in the short term," said Jatin Gedia.

Stocks To Buy On Monday

Sumeet Bagadia, Executive Director of Choice Broking has picked up 2 stocks to buy on Monday, 24th July.

Piramal Enterprises Ltd

Buy PEL in cash @ Rs 995.05, stop loss Rs 970, target price Rs 1050

PEL is presently trading at 995.05 and has exhibited a noteworthy performance. Notably, the stock has surpassed all of its short, medium, and long-term exponential moving averages, including the 20, 50, 100, and 200 EMAs. Additionally, it has experienced a breakout above the key level of 982, demonstrating the stock's ability to sustain this level for a week or more. Furthermore, the Relative Strength Index (RSI) has remained above 65 near to 68 and continues to display an upward slope, indicating a strong market sentiment for PEL.

Based on our analysis, we anticipate a favorable upward movement for the stock, with a potential target range of 1050. However, it is important to note that our bullish outlook would be invalidated if the stock drops below 970.

Tata Consumer Products

Buy TATACONSUM in cash @ Rs 852, stop loss Rs 838, target price Rs 885

TATACONSUM is currently trading near 852. It has managed to hold crucial levels of 840.

The Strength is shown by the RSI indicator's current trading range of 60 levels. The stock is currently trading above all of the key moving averages. The Bollinger band continues to expand on the daily chart, with the price trading above the band's centre line, indicating the stock's strength. A small resistance is placed near 875 levels; if the stock surpasses this level, it may move towards 890 levels and higher which are also all-time high levels.

With a short-term target price of 885, we advise purchasing TATACONSUM at the CMP of 582. If the price closes below 838, our analysis will be regarded as invalid.

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.