Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Tuesday, 8th Aug

The market responded well on Monday despite mixed global cues, with the Sensex rising 0.35 percent and closing at 65953.48, the Nifty rising 0.41 percent intraday and closing at 19597.30, and the Bank Nifty declining 0.09 percent and ending the day at 44837.50.
Nifty Metal, PSU Bank, and Media ended on the red note, while Nifty AUTO, IT, and PHARMA ended in the green. Divis Lab, M&M, and SBI Life Insurance were the leading gainers among Nifty stocks, while SBI, Britannia, and Tata Motors were the top losers. The intraday gain for the India VIX was 5.01 percent, and it ended the day at 11.10.

Nifty Prediction

Commenting on the outlook of Nifty, Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said, "The Nifty has been in a counter-trend pullback since the last couple of trading sessions. It closed in positive for the second consecutive trading session up ~80 points. On the daily charts, we can observe that the nifty has overlapped the swing low of 19563 and as a result, the fall is no longer impulsive in nature.

The pullback still appears corrective in nature and this is unlikely to sustain at higher levels. It has reached the 61.82% Fibonacci retracement level (19605) of the fall from 19795 - 19296 which is likely to provide resistance. Also, the hourly momentum indicator has reached the equilibrium line indicating that the pullback has matured and can start a new cycle. Overall, we still shall continue to maintain our negative stance on the Nifty, and we expect levels of 19100 from a short-term perspective."

Bank Nifty Prediction

Commenting on the outlook of Bank Nifty, Jatin Gedia said, "Bank Nifty traded within the range of the previous trading session and closed in the red. It has thus formed an Inside Bar pattern on the daily charts which makes the extremes of the pattern i.e. 451118 and 44520 crucial levels from a short-term perspective. A breach of these levels on either side shall lead to a move in that direction. Considering the price and momentum setup, we expect the index to trade with a negative bias and target levels of 44000 from a short-term perspective."

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy on Tuesday, 8th August.

Siemens

SIEMENS has revealed a gradual upward movement in the larger time frame, indicating a persistent bullish trend. However, over the past week, the stock has experienced consolidation suggesting a temporary pause. ADX at a level of 26 indicates that the stock is currently in a moderate trend. RSI is positively skewed, indicating a favourable price action among investors potentially supporting the continuation of the upward trend. Furthermore, the increasing delivery volume indicates higher participation and interest from market participants.

One can initiate a long position at cmp 3834.1 for the target price of 3960. SL can be kept as 3760.

Biocon

For the past few weeks, the stock has been trading in a narrow range. Seems the stock has taken a pause after the decent rally. Considerably we can say that can be an accumulation phase as there is a lesser movement in the short time frame. According to Fibonacci retrenchment, the price action is still resilient and sustaining above 0.618 percent. The RSI is gradually trending higher, indicating increasing buying interest. Additionally, the price is sustaining the middle Bollinger Band as well.

One can initiate a long position at cmp 261.4 for the target price of 271. SL can be kept as 254.

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.