Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Today, 21st July

On Thursday the market traded in a positive direction and settled near an intraday high level, with the Sensex rising 0.74 percent and closing at 67571.90, the Nifty rising 0.74 percent throughout the day and closing at 19979.15, and the Bank Nifty rising 1.13 percent and closing at 46186.90.

ITC, Kotak Mahindra Bank, Dr. Reddy's Laboratories, ICICI Bank, and Cipla were among the top gainers on the Nifty, while Reliance Industries, Infosys, UltraTech Cement, HCL Technologies, and Bajaj Finserv were the top losers. Among the sectors, the FMCG, bank, and pharmaceutical indices all climbed by 1%, Oil & Gas index gained by 0.5 % while Nifty PSU BANK and Nifty FIN SERVICE and Nifty PVT BANK ended in green. The power index dropped 0.4 percent, IT index plummeted 0.8 percent, while Nifty IT, and Nifty Consr Durbl ended on a red note.

Market Outlook

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said "On the backdrop of consistent FIIs buying (₹16300cr month till date), sound macros and micros, and surplus monsoon so far, Nifty has rallied by 15% since 1st April'23 and 4% month till date. Nifty should most likely cross the 20k mark on Friday given the ongoing momentum and clear strength visible in the market. Strong heavy weights results are likely to further influence the market direction in the near term. Investors eagerly await Reliance Q1 results, which will be announced Friday, and management commentaries on the same along with further details on Jio's financial listing."

Nifty Prediction

Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas, said "The Nifty broke out of the two-day consolidation on the upside and closed with gains of ~146 points. On the daily charts, we can observe that the Nifty has resumed its upmove after a brief consolidation. On the upside we expect Nifty to target levels of 20200 from a short-term perspective. The daily and hourly momentum indicators are having a positive crossover and are in sync with the price action. Thus, both price and momentum indicators are suggesting a continuation of the current upmove. We shall continue to maintain a positive outlook on the index. In terms of levels, 19880 - 19850 shall act as a crucial support zone as per the principle of role reversal, and on the upside 20150 - 20200 shall act as an immediate hurdle zone and our short-term target zone."

Bank Nifty Prediction

Jatin Gedia said, "Bank Nifty witnessed a breakout from the inside bar pattern on the upside and also witnessed follow-through buying interest. The daily and the hourly momentum indicator also have a positive crossover. Thus, both price and momentum indicators are suggesting a continuation of the upmove and expect the Bank Nifty to target levels of 46500."

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy today on Friday, 21st July.

Axis Bank

Buy AXISBANK @ Rs 977.90, stop-loss Rs 950, target price Rs 1010

Currently AXISBANK is trading around 977.90 levels. The stock is continuously forming higher high higher low formation on daily charts. The stock has a strong support near 955 levels. Currently stock is trading above all important moving averages where 20 Day EMA has crossed today with decent volumes indicating strength. Momentum Indicator RSI is comfortable near 58 levels indicating positive momentum. A small resistance is placed at 990 levels. Once stock crosses the mentioned resistance which is also all-time high levels it can move further towards the target of 1010 levels and above.

Based on the above analysis we anticipate stock to move higher towards the target of 1010 and above and advise to buy at the CMP of 977.90 with a SL of 950.

Tata Steel

Buy TATASTEEL @ Rs 116.95, stop-loss Rs 114.5, target price Rs 121

TATASTEEL has formed a doji pattern yesterday and has also formed a bullish candle today on daily chart indicating reversal of the small bearish trend. The stock has overcome above all the important moving averages. We can witness a small resistance near 119.35 levels which is also the all-time high levels. Once stock surpasses the above-mentioned resistance it can move further towards the target of 121 levels and above. The stock has a strong base near 114.5 levels which is also a 20-day EMA level. On daily charts RSI is also comfortably trading near 64 levels indicating strength.

Based on the above analysis we recommend buying TATASTEEL near 116.95 levels with an SL of 114.5 for the target of 121 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.