Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Or Sell On Tuesday, 11th July

The market opened flat on Monday but ended on a positive note, with Sensex gaining 0.10 per cent to close at 65344.17, the Nifty rising 0.12 per cent intraday to end at 19355.90, and the Bank Nifty falling 0.14 per cent to end at 44860.85. While Nifty IT, Nifty Fin Services, and Nifty Auto closed on a red note, Nifty Metal, Nifty Energy, and Nifty Infra ended on a green note. Reliance, Tata Steel, and JSW Steel were the top gainers among Nifty stocks, while Titan Company, HCL Tech, and TCS were the top losers.

Market Outlook

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said "Nifty traded sideways throughout the session to close with marginal gains of 36 points at 19368 levels. The broader market underperformed with Nifty midcap and smallcap down -0.4% and -0.6% respectively. Except for Metals and Oil & Gas, all sectors ended in red. After a one-way move, the market is witnessing some consolidation and profit booking at higher levels amid weak global cues. Investor sentiments were dampened after the latest data suggested China is on the brink of deflation. With Q1 result season starting this week, we expect stock-specific action in the market, starting with the technology sector. Also, monsoon-related stocks are likely to remain in momentum after a rainfall deficit of 10% turned into a surplus of 2% within 8 days."

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas said "The Nifty witnessed a range-bound trading session and consolidated within the range (19524 - 19303) of the previous trading session. It closed in the green by ~24 points. Today the nifty opened in the green however it was unable to sustain at higher levels. It faced resistance in the zone 19430 - 19450 where the 20-hour moving average is placed. On the daily charts, we can observe that the Nifty is in the process of retracing the rise it has witnessed in the previous couple of weeks.

The crucial Fibonacci retracement level and gap area coincide around 19200 - 19180 which could act as a support zone from a short-term perspective and on the upside 19520 - 19550 shall act as an immediate hurdle zone from a short-term perspective. The daily momentum indicator has a positive crossover and thus this dip should be bought into."

Commenting on the outlook of Bank Nifty, Jatin Gedia said "As far as Bank Nifty is concerned, the Index continued to trade with a negative bias. It witnessed follow-through selling pressure and filled the gap area between 44800 - 44900 created on the 3rd of July, 2023. The Bank Nifty is in the process of retracing the rise it witnessed in the last couple of weeks and there are multiple supports in the form of Fibonacci retracement levels around 44840 - 44587 which could arrest the downside. The correction is providing an opportunity for an entry and this is a dip that should be bought into."

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy on Tuesday, 11th July.

Bharat Forge

In the daily chart, the stock has been consistently following a Higher High-Higher Low formation. As the stock has recovered from its previous support zone and remains over 850, it may continue its primary trend. Price is also holding above the 20 and 40 EMAs. The RSI indicator, which is currently at 63, indicates bullishness in the stock.

One can initiate a long position at cmp 851.2 for the target price of 880. SL can be kept as 833.

Escorts Kubota

Buy ESCORTS in cash @ Rs 2285.85, stop loss Rs 2225, target price Rs 2400

ESCORTS have bounced back from the strong support of 2200, which is also a 20 Day EMA and has given a breakout above a crucial resistance of 2230 levels. ESCORTS can climb upwards towards higher levels near 2400 levels as the current breakout is backed by strong volumes. The fact that the RSI indicator is comfortably trading near 63 levels suggests that the present rebound can continue and that the stock may continue to rise.

With a medium-term goal price of 2400, we advise purchasing ESCORTS at the current market price of 2285.85. If the price closes below 2225, our analysis will be regarded as invalid.

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.