Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Or Sell On Monday, 17th July

The Indian stock market ended the day higher on Friday. NSE Nifty gained 150 points and ended the day at 19,564 while BSE Sensex soared by 502 points and closed the day at 66,060. The Bank Nifty index gained 154 points to reach a high of 44,819 points. On the weekly chart, the Bank Nifty Index reached a high of 45184.30 and ended the session at 44819.30, down 0.24 percent from the previous week's closing. On the other hand, the Nifty index began the week positively with a gap up at 19,400 and traded in a range of 19,520 to 19,370.

Nifty Prediction

Sumeet Bagadia, Executive Director of Choice Broking said, "The Nifty index exhibited a remarkable performance in Friday's session, closing approximately 151 points higher and comfortably surpassing the resistance zone at the 19,500 mark. This resulted in the formation of a long bull candle on the daily chart, characterized by a minor lower shadow. Analysts interpret this chart pattern as an indication of a decisive breakout attempt towards the upside after a period of narrow range movement between the 19,300 and 19,500 levels over the past few sessions."

"The Indian market continued its record-breaking run, extending gains for the third consecutive week, buoyed by positive domestic and global data. The consistent buying by foreign institutional investors (FIIs), along with favorable progress in the monsoon season and strong quarterly earnings, further supported the ongoing rally that concluded on July 14," he further added.

"During the week, the 30-stock Sensex index advanced by 1.19 percent, or 780.45 points, reaching a closing value of 66,060.90. Similarly, the broader Nifty index registered a gain of 1.20 percent, or 232.7 points, closing at 19,564.50. Both benchmarks achieved new all-time highs throughout the week, with the Sensex reaching 66,159.79 and the Nifty touching 19,595.35," said Sumeet Bagadia.
"The market sentiment was also bolstered by the substantial buying activity from foreign institutional investors, who acquired shares worth Rs 5,417.78 crore, while domestic institutional investors sold equities worth Rs 1,251.29 crore.So far this month, FIIs have invested Rs 14,582.63 crore in equities, while DIIs have divested Rs 8,129.50 crore worth of shares," Sumeet Bagadia stated.

"Starting the week on a positive note, the Nifty index opened with a gap up at 19,400 and traded within a range of 19,520 to 19,370. Despite testing the crucial 19,500 level multiple times, it encountered selling pressure. However, on Friday, the Nifty opened with a gap up and displayed a strong bullish movement, gaining 150 points and successfully breaching the significant resistance at 19,500. It concluded the week at 19,564, maintaining its higher high and higher low formation, with the previous candle's low remaining unbroken on the weekly timeframe. The Relative Strength Index (RSI) values for the daily, weekly, and monthly charts are all above 60 levels, indicating a bullish momentum in the market. Presently, the Nifty is trading in uncharted territory, with the 19,400-19300 levels serving as a support on the downside. Notably, the highest Call Option (CE) writers are positioned at the 19,700 level, while the highest Put Option (PE) writers are positioned at the 19,500 level which will act as crucial support and resistance levels in near term," added Sumeet Bagadia.

Bank Nifty Prediction

"The Index achieved a high of 45184.30 on the weekly chart and closed the session at 44819.30, down 0.24 percent from the previous week's close. On the weekly chart, the index has formed a doji candle with a minor difference of 139.35 points between the open and end of the week. This doji candle suggests market indecision, but the overall trend is optimistic, therefore expects the index to rise in the next weeks. Currently, the RSI momentum indicator is trading around 65 levels. If the index rises, we predict ICICIBANK to outperform the bank nifty index, as it has closed at all-time high levels. AXISBANK may also be a front-runner in private banking. While PSU banks SBIN and BANK OF BARODA are projected to rise and give a healthy gain in the coming week," said Sumeet Bagadia.

"The Bank Nifty JULY futures are trading at an 83.35 point premium to the Bank Nifty spot. The Bank Nifty Put option OI distribution shows that 44500 have the biggest concentration, which may operate as support for the current expiry. Bank Nifty Call strikes 45000 and 45200 experienced substantial OI concentrations and may serve as resistance for the current expiry. A breakout above 45200 levels, Bank nifty can further move towards all-time high levels of 45655.50 levels. Strong support is located around 44300-44500 levels; if the Index closes below the mentioned support, momentum will shift to downside. It is recommended that traders and investors should buy the dips in bank nifty with proper SL below supports mentioned," the analyst further added.

Stocks To Buy On Monday

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy on Monday, 17th July.

United Spirits

Buy MCDOWELL_N in cash @ Rs 944.80, stop loss Rs 920, target price Rs 990

MCDOWELL_N has bounced back from the support of 920 levels which was prior a resistance. Currently, the stock is trading around 944.80 levels. The stock is trading above all important moving averages indicating strength. The correction was from the upper band of the Bollinger band and also the bounce back is from the middle band which indicates strength. The RSI indicator is also trading near to 58 levels which will help stock to move upwards.

Based on the above analysis MCDOWELL_N can be purchased at CMP of 944.80 with a SL of 920 levels for the target of 990 levels and above.

HCL

Buy HCL Tech in cash @ Rs 1150, stop loss Rs 1115, target price Rs 1208

HCL Tech, a leading technology company, has displayed a consistent uptrend, holding steady around its current market price (CMP) of 1100. The stock is trading above its crucial moving averages of 20, 50, and 100, indicating a bullish sentiment. A minor resistance at 1160 levels, when once taken out, could act as a catalyst for further upward movement. The Relative Strength Index (RSI) is currently at 52 and trending upwards, reflecting growing buying interest. This makes HCL Tech an attractive buy.

However, caution is advised, with a close eye on the stock falling below 1115, as it could negate the positive outlook. A short-term target of 1208 is plausible.

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.