Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Thursday, 27th July

The benchmark NSE Nifty 50 and BSE Sensex both ended on Wednesday in positive territory. Nifty 50 gained 50 points and settled at 19,778.30. In contrast, the Sensex gained 350 points to close at 66,707.2. Ahead of the major U.S. Federal Reserve monetary policy announcement, Indian market displayed a rally on Wednesday, powered by substantial upside in major companies like ITC, Britannia, Reliance Industries, Larsen & Toubro (L&T), and Sun Pharma.

Market Outlook

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services said, "After three days of consolidation, the market is witnessing buying at lower levels. Further, a lower VIX is also supporting the bullish sentiments. Now all eyes will be on the US FOMC meeting, where another rate increase is expected. Fed's commentary will also be important, as this would provide some cues towards the Fed's stance going forward. Domestically, monthly F&O expiry along with a slew of corporate earnings, could keep the market a bit volatile."

Nifty Prediction

Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said, "The Nifty opened on a positive note on Wednesday and traded with a positive bias and closed with gains of ~90 points. On the daily charts, we can observe that the Nifty managed to bounce from the Fibonacci support level (19,650) however, the upside got restricted by the hourly upper Bollinger band which was placed around 19,830. The daily and the hourly momentum setup is providing divergent signals which can lead to a consolidation in the short term. The daily Bollinger bands are also contracting which points towards a consolidation in the short term. In terms of levels, 19,615 - 19,560 shall act as a crucial support zone, and on the upside 19,830 - 19,850 shall act as an immediate hurdle zone."

Bank Nifty Prediction

"Bank Nifty also witnessed a bounce from the cluster of 45,670 - 45,700 where support parameters in the form of the 38.2% Fibonacci retracement level and the 40-hour moving average were placed. The fall as well as the rise on the hourly time frame are overlapping in nature which gives us a sense that the Bank Nifty is undergoing a corrective phase that is not over yet. Once this consolidation phase is over, we can expect the uptrend to resume and expect it to target levels of 46,500," said Jatin Gedia.

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy today i.e. Thursday, 27th July.

Escorts Kubota

Buy ESCORTS in cash @ Rs 2430.35, SL Rs 2370, target price Rs 2520

ESCORTS have bounced back from the strong support of 2315, which is also close to 20 Day EMA and has given a breakout above a crucial resistance of 2395 levels which was also an all-time high level for the stock. ESCORTS can climb upwards towards higher levels near to 2520 levels as the current breakout is backed by the strong volumes. The fact that the RSI indicator is comfortably trading near 73 levels suggests that the present rebound can continue and that the stock may continue to rise.

With a medium-term goal price of 2520, we advise purchasing ESCORTS at the current market price of 2430.35. If the price closes below 2370, our analysis will be regarded as invalid.

IndusInd Bank

Buy INDUSINDBK in cash @ Rs 1427, SL @ Rs 1400, target price Rs 1472

Currently, INDUSINDBK is trading around 1427 levels. The stock is continuously forming higher high higher low formations on weekly charts. The stock has strong support near 1405 levels. Currently stock is trading above all important moving averages.

The important support of 1405 was prior resistance and stock sustaining above these levels indicates strength. The momentum indicator RSI is around 65 levels and slopping upwards indicating strength. A small resistance is placed around 1444 levels which is also a recent high, once stock surpasses the above-mentioned level it can lead towards the target of 1472 and above.

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.