Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Tuesday, 1 Aug

Domestic equities regained their rising trend on Monday after a two-day break. BSE Sensex rose 367 points and ended at 66,527, while NSE Nifty climbed 107 points to close at 19,753 levels. All industries except for FMCG and healthcare saw positive outcomes in the end. Gains of over 1% were recorded in the following sectors: metals, IT, automobiles, oil & gas, and consumer durables. Gains of 1% were recorded in the broader market.

Nifty Prediction

On the outlook for Nifty today, Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said, "The Nifty opened on a flat note and traded with a positive bias throughout the day to close in the green up by ~95 points on Monday. On the daily charts, we can observe that the Nifty has bounced from the 20-day moving average of 19,600.

The bounce back has overlapping in nature and hence we believe that there is more room for consolidation. A study of the hourly Bollinger bands suggests contraction of range and further points towards range-bound price action. The daily and hourly momentum indicators provide divergent signals which also suggest the absence of trending moves. Considering all the above parameters, we shall continue to maintain that nifty is likely to remain range bound between 19,500 - 20,000. Crucial support levels to keep handy are 19,630 - 19,600 and on the upside, 19,800 - 19,860 is the immediate hurdle zone."

Bank Nifty Prediction

On the outlook for Bank Nifty Today, Jatin Gedia said, "Bank Nifty also opened on a positive note and witnessed a range-bound price action. It managed to hold on the 20-day moving average (45392) and witnessed a bounce from that support. The Bollinger bands are contracting which indicates contraction of range and also range-bound price action over the next few trading sessions. Divergent signals from the daily and hourly momentum indicators further support our sideways outlook for Bank Nifty. Overall, we expect the bank Nifty to consolidate between 46,500 - 45,000."

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy on Tuesday, 1st August.

Reliance

Buy RELIANCE in cash @ Rs 2549.25, stop-loss @ Rs 2480, target price @ Rs 2630

RELIANCE is currently trading at 2549.25 levels. The stock has strong support at 2487 levels which is also a 20-day EMA level. We can also witness small resistance near 2575 levels. Once stock maintains a higher level than 2575, it may advance upward and approach the 2630 levels which is also close to all-time high levels. Also, the stock is trading above all the important moving averages. The RSI indicator is comfortably trading at 62 levels which indicates that the stock has the potential to move upwards.

Based on the above technical analysis we recommend buying RELIANCE at CMP of 2549.25 for a medium-term outlook with a stop loss of 2480 for targets of 2630.

Ashok Leyland

Buy ASHOKLEY in cash @ Rs 184, SL @ Rs 178, TGT @ Rs 192

The stock has corrected from a new all-time high level. The stock has corrected from the new all-time high level of 186.5 but has shown a bounce from the initial support itself. ASHOKLEY has formed strong support at 178 levels. Currently, the stock is trading around 184 levels. A smaller resistance is visible on the charts near 186.5 levels which is also an all-time high level. Once the stock overcomes the previously mentioned resistance, it will be able to move closer to the target price of 192 and higher. The stock is trading above all important moving averages. RSI is also trading comfortably at 73 levels indicating strength.

Based on the above analysis we recommend buying ASHOKLEY at a CMP of 184 with a medium-term target price of 192. Our analysis will be deemed void if the price closes below 178 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.