Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Or Sell On Thursday, 6th July

The market traded in mixed territory on Wednesday, with the Sensex losing 0.05 per cent and closing at 65446.04 levels, the Nifty gaining 0.05 per cent intraday and closing at 19398.50 levels, and the Bank Nifty losing 0.33 per cent and ending at 45151.80 levels. Nifty PVT Bank, Nifty Fin Services, and Nifty Serv Sector closed on the downside among the sectors, while Nifty Auto, Nifty IT, and Nifty PSU Bank closed in green. The top gainers among Nifty stocks were Bajaj Auto, Divis Lab, and Hero Motocorp, while the top losers were HDFC, HDFC Bank, and Eicher Motors. The INDIA VIX closed the day 1.54 per cent higher at 11.88.

Market Outlook

Commenting on the outlook of Nifty, Sumeet Bagadia, Executive Director of Choice Broking said, "Volume profile indicates Index has a strong support around 19150-19250 zone. Coming to the OI Data, on the call side, the highest OI observed at 19500 followed by 19550 strike prices while on the put side, the highest OI is at 19300 strike price."

"On the other hand, Bank nifty has support at 44900-45000 while resistance is placed at 45500 levels," he further stated. Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas said "The Nifty witnessed a day of consolidation. It traded within the range of the previous trading session (19434 - 19300) and closed with marginal gains. On the daily charts it has formed an Inside Bar Pattern indicating consolidation.

The hourly Bollinger bands are also contracting indicating that rangebound price action. We believe that the Nifty is in the process of consolidation after a sharp runup and this consolidation form a floor for the next leg of upmove. Over the next few trading sessions, we expect the Nifty to consolidate in the range 19500 - 19300 and a dip towards the 19300 should be used as a buying opportunity. Overall, the uptrend is intact, and we expect levels of 19500. In terms of levels, 19300- 19270 shall act as a crucial support zone while 19450 - 19500 shall act as a crucial resistance zone."

On the outlook of Bank Nifty, Jatin Gedia said, "As far as Bank Nifty is concerned, the Index also witnessed subdued price action on the back of weakness in HDFC BANK. Overall, the Bank Nifty is in a consolidation mode after a sharp run up. The hourly momentum indicator has a negative crossover and negative divergence which indicates loss of momentum on the upside. Overall, the range of consolidation is likely to be 45000 - 45600."

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking, has recommended 2 stocks to buy today i.e. Thursday, 6th July.

TVS Motor

TVSMOTOR has formed a double bottom pattern in daily charts following a period of consolidation. The stock price is holding above the 40-day EMA, indicating potential support. In the larger time frame, the stock continues to form higher highs and higher lows, indicating an intact uptrend. The positive crossover on the MACD momentum indicator further confirms the bullish price action.
One can initiate a long position at cmp 1319.8 for the target price of 1360. SL can be kept as 1295.

Power Grid

Buy POWERGRID in cash @ Rs 253, stop-loss @ Rs 247, target Rs 263

POWERGRID, is presently trading at 253, having recently broken out from its previous resistance of 250 that persisted for a month and sustained that level which signifies a good buying opportunity

In addition, the Relative Strength Index (RSI) is trending upward and appears to be on the verge of a positive crossover, indicating a potential increase in buying pressure. Moreover, Power Grid price is currently positioned above its 20-50-100-200 Exponential Moving Averages (EMA), suggesting underlying strength in the stock.

The Bollinger Band is also displaying expansion, indicating an increase in volatility and potential upward momentum. Taking all these factors into consideration, Power Grid presents a favourable buying opportunity at the current price of 253, with a target price of 263. It is important to note that our views would be invalidated if the stock were to fall below the 247 level.

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.