Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Or Sell On Thursday, 20th July

On Wednesday, the Indian stock market closed on a higher note for the fifth straight session. Bank Nifty index ended 258 points higher at 45,669 levels, NSE Nifty ended 83 points higher at 19,833 levels, and BSE Sensex rose 302 points to settle at 67,097 levels. The top five Nifty gainers were Hindalco Industries, Bajaj Auto, Hero MotoCorp, TCS, and Maruti Suzuki, while the top losers were Bajaj Finance, IndusInd Bank, UltraTech Cement, and Bajaj Finserv. All sectoral indices ended higher, with PSU Bank up 2%, power, healthcare and oil & gas up 0.5 %. The BSE smallcap index and midcap index both climbed by 0.6 percent.

Market Outlook

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said, "Banking stock continues to remain in the limelight after Indusind Bank & Bank of Maharashtra reported healthy Q1 results. Cable and wiring stocks witnessed a smart rally after Polycab reported strong volume growth in the June quarter. Domestic market has been hitting record highs daily over the last few sessions driven by sustained foreign inflow, surplus monsoon, and a good start to earning season. We expect this momentum to continue in the near term given buoyant domestic cues and receding global concerns. Tomorrow, markets would react to the weekly option expiry and results of index heavyweight Infosys and HUL."

Sumeet Bagadia, Executive Director of Choice Broking said, "The Indian Benchmark Indices are on the verge of breaching the 20,000 mark. If we look at the last three weeks, it has climbed more than 5%, which is considered a great rally. We believe the Nifty will reach 20k by the end of the month or over a longer period of time. Overall, the sectors are performing rotationally, which has contributed to the Index's rise from 17000 to 19700 levels. For the time being, extended FII buying is acting as a catalyst for investors to remain bullish over a period of time."

Nifty Prediction

Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said "The Nifty witnessed consolidation for the most part of the day. It was during the final hour of trade that the action picked up and the nifty closed with a handsome gain of ~84 points. On the daily chart, we can observe that the Nifty has consolidated between 19700 - 19850 in the past couple of trading sessions. Today it tested the lower end of that range and witnessed buying interest indicating that it is a strong support, and the floor is set for the next leg of up move. The up move can target levels of 19964 - 20000. The daily and the hourly momentum indicator is providing divergent signals which could lead to a short-term consolidation however, the overall structure seems to be turning in the favor of the bulls and hence we shall continue to maintain a positive outlook on the index. In terms of levels, 19740 - 19700 shall act as a crucial support zone while 19964 - 20000 shall act as an immediate hurdle zone."

Bank Nifty Prediction

"Bank Nifty consolidated within the range of the previous trading session (45906 - 45281) and has thus formed an Inside bar pattern which makes the extremes of the range crucial levels from a short-term perspective. A breach of the extremes shall lead to a move in that particular direction. We expect the breakout to be on the upside and expect the Nifty to target levels of 46500," said Jatin Gedia.

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy today on Thursday, 20th July.

BPCL

The stock is slowly holding around the 20 and 40 EMA, which act as a crucial support. The RSI has been holding steady at 57 and might continue to do so. In an extended period of time, the stock is rising and following the HH-HL formation. Additionally, the price is holding above the middle Bollinger band in the daily chart.
Based on technical parameters, one can initiate a long position at CMP 384.5 for the target price of 395 with SL of 379.

Bajaj Finance

Buy BAJFINANCE in cash @ Rs 7584, stop-loss (SL) Rs 7450, target price Rs 7850

BAJFINANCE is currently quoting at 7584 and has recently experienced a favorable rally. After reaching a support level of 7380, the stock rebounded, indicating a strong level of support. Furthermore, it has consistently maintained a positive trajectory in relation to its 20-day Exponential Moving Average (EMA), further reinforcing its bullish stance.

The Relative Strength Index (RSI) for BAJFINANCE is currently at 63, signaling positive momentum, with an upward slope. This suggests that the stock is displaying favorable strength in its current trend.

Considering the aforementioned factors, it appears to be an opportune time to consider BAJFINANCE as a potential investment. A recommended strategy would be to initiate a buy position with a target price of 7850. To manage risk, a Stop Loss (SL) should be placed at 7450 to protect against potential downside movement.

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.