Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Tuesday, 25th July

Indian stock market ended on a negative note on Monday amid the upcoming FOMC meeting and weak Q1 results. Sensex lost 0.45% percent and ended at 66384.78, Nifty lost 0.37 percent intraday and closed at 19672.35 levels, while Bank Nifty lost 0.33 percent and settled at 45923.05. While Nifty Metal, Nifty FMCG, and Nifty Consumption ended on a red note, Nifty Auto, Nifty Pharma, and Nifty PSE closed on a green note. The top gainers among Nifty stocks were IndusInd Bank, M&M, and DR Reddy Labs, while the top losers were ITC, Kotak Mahindra Bank, and Reliance.

Market Outlook

Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said, "The Nifty opened on a flat note and traded with a negative bias to close in the red down ~73 points. On the daily charts, we can observe that the Nifty is retracing the rise from 19303 - 19992. Currently, it is around the 50% Fibonacci retracement level and is expected to attract buying interest. The daily momentum indicator has triggered a negative crossover which is a sell signal. Both price and momentum indicators are indicating weakness. However, we are still of the opinion that this is a dip that should be bought into as the overall uptrend is still intact. In terms of levels, 19600 - 19580 shall act as a crucial support zone, and on the upside 19800 - 19840 shall act as an immediate hurdle zone."

Commenting on Bank Nifty prediction, Jatin Gedia said, "Bank Nifty closed in the red today. It witnessed selling pressure from around 46200 levels and drifted lower. We believe that Bank Nifty is in the process of retracing the rise it has witnessed from 44547 - 46370. On the downside, it can slip towards 45750 - 45670 where support is in the form of the 38.2% Fibonacci retracement level and the 40-hour moving average is placed. Overall, the trend is still positive and once this consolidation is complete, we can expect the Bank Nifty to resume its uptrend. On the upside 46500 is the expected target."

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has picked up 2 stocks to buy on Tuesday, 25th July.

Bank of Baroda

The stock is slowly holding around the 20 and 40 EMA, which act as a crucial support. The RSI has been holding steady at 52 and might continue to move higher. In an extended period of time, the stock is rising and following the HH-HL formation. Additionally, the price is holding at the middle Bollinger band in daily chart.

Based on technical parameters, one can initiate a long position at CMP 198.3 for the target price of 205 with SL of 194.

M&M

Buy M&M in Cash @ Rs 1546, stop-loss Rs 1510, target price Rs 1595

M&M, a prominent stock in the market, is currently experiencing robust trading activity, with its shares reaching a significant value of 1546. Notably, M&M has demonstrated a notable increase in trading volume, and its closing price has consistently remained above the 1515 level for the past week, indicating a favorable trend.

Moreover, the Relative Strength Index (RSI) for M&M has displayed a positive crossover, further strengthening the bullish sentiment. Currently, the RSI stands at 66 consistently maintaining levels above 60, which signifies a strong buying momentum in the stock.
The stock is currently trading above its 20, 50, 100, and 200-day Exponential Moving Averages (EMAs), implying a favorable momentum in the market for Reliance shares.

Furthermore, the Bollinger Bands, a technical indicator that measures volatility, are displaying an expansion for M&M. This suggests that the stock is experiencing increased price volatility, which can present potential trading opportunities for investors.

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.