Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Or Sell On Monday, 10th July

While the BSE Sensex lost 505 points and ended at 65,280 on Friday, the NSE Nifty closed 165 points down at 19,331 levels amid weak global cues. Bank Nifty fell below 45,000 points and closed at 44,925 points. Broader market too ended in red with the Nifty midcap 100 dropped 0.8% while the Nifty smallcap 100 slipped 0.4%. All industries saw a negative ending except PSU bank and auto. Among the top losers were private banks, FMCG, and real estate.

Market Outlook Next Week

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas believes "The Nifty witnessed profit booking after rallying for seven consecutive days. It closed in the negative down ~165 points. On the daily charts we can observe that the Nifty could not continue with the positive momentum. After a sharp run up the nifty is now undergoing a consolidation phase which could result in retracement of the rise it has witnessed from 18646 to 19524.Crucial Fibonacci retracement level and gap area coincide around 19200 - 19180 which could act as a support zone from short term perspective and on the upside 19520 - 19550 shall act as an immediate hurdle zone from short term perspective. The daily momentum indicator has a positive crossover and thus this dip should be bought into."

On the outlook of Bank Nifty he said "As far as Bank Nifty is concerned, the Index has retraced 38.2% of the entire rise and has reached a crucial Fibonacci support level of 44800. So the Bank Nifty seems to be around support zone and we do not expect further downside. The daily momentum indicator has a positive crossover and thus this dip should be used as a buying opportunity. On the upside we expect it to target levels of 45500.'

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said "Globally, sentiments turned sour after strong US private jobs data raised the probability of interest rate hikes by the Fed in its upcoming meeting. Investors look ahead to the release of the latest U.S. nonfarm payrolls late Friday to provide further clues into the Federal Reserve's policy outlook. On the domestic front, markets are witnessing profit booking at a higher level after seeing a run-up of more than 4% in the last eight trading sessions. Going forward, markets are likely to sustain the current momentum, as stock-specific action will pick up with the onset of the Q1FY24 earning season. India's retail Inflation data to be released next week would also provide some cues. The technology sector is likely to remain in focus with TCS and HCL Tech announcing their result on Wednesday followed by Wipro on Thursday'."

Stocks To Buy On Monday

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy on Monday, 10th July.

SBI

Buy SBIN in cash @ 593.60, stop loss @ 580, target price @ 618

SBIN has a strong support at 582 levels. Currently, the stock is trading around 593.60. A smaller resistance is visible on the charts at 596 levels. The stock is trading above all important moving averages indicating strength. Once the stock overcomes the previously mentioned resistance level, it will be able to move closer to the target price of 618 and higher. The RSI is trading comfortably at 65 levels indicating strength.

Based on the above technical analysis we recommend buying SBIN at CMP of 593.60 with a SL of 580 for the target of 618.

Sona Blw Precision Forgings

Price was consolidating in defined range but has given breakout above 525 and is sustaining the same. Positive crossover is shown by the 20 EMA crossing the 40 EMA. Price is also sustaining above middle Bollinger band indicates bullishness in price action. RSI stands at 60 levels. One can initiate long position at Cmp 535.3 for the target price of 554. SL can be kept as 524.

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.