Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Or Sell On Tuesday, 4th July

The Bank Nifty index wrapped up at 45,158.10, up 410.75 points, while the Nifty index closed at 19,322.55, up 133.50 points. BSE Sensex surpassed the 65,000 mark for the first time ever and closed 486.49 points (0.75%) higher at 65,205.05 level. Top-performing sectors were oil and gas and banking, with strong gains also seen in FMCG, metals, consumer durables, and energy companies. The top losers, though, were capital goods, IT, healthcare, and auto sectors. HDFC, HDFC Bank, Mahindra & Mahindra, UltraTech Cement, Tata Steel, Bajaj Finance, State Bank of India, Reliance Industries, Bajaj Finserv, and ICICI Bank were among the top gainers in the Sensex index. On the other hand, poor performers included Power Grid, Maruti, Tech Mahindra, IndusInd Bank, HCL Technologies, and Axis Bank.

The market rally on Monday was witnessed amid positive global cues and strong FII inflows. By making an investment of roughly Rs 1,996 crore in Indian stocks, foreign institutional investors (FIIs) made a positive start for the month of July. Domestic institutional investors (DIIs), on the other hand, were net sellers. According to NSE statistics, the total buying value for FIIs on July 3 was Rs 7,533.91 crore, while the total selling value was Rs 5,537.99 crore. As a result, they made a total inflow of Rs 1,995.92 crore in Indian stocks. On the other hand, DIIs made investments in stocks of Rs 7,031.90 crore but sold them for Rs 7,369.70 crore, resulting in a net outflow of Rs 337.80 crore. During the month of June FIIs were the net buyers of Rs 27,250.01 crore in Indian stocks while according to statistics from Stock Edge, DIIs ended the month as buyers, bringing in a total of Rs 4,458.23 crore.

Market Outlook

Commenting on the outlook of Nifty, Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas said "The Nifty witnessed a gap up opening for the fourth consecutive day and continued to inch higher throughout the day to close with gains of ~130 points. On the daily charts we can observe that the Nifty has witnessed a perpendicular rally in the last five trading sessions. it has rallied around 675 points without a meaningful pullback. The hourly momentum indicator has triggered a negative crossover which indicates loss of momentum however we shall await evidence on the price front to forecast a consolidation. A break of today's low (19234) shall be the first signs to look for a consolidation to set in and until then the strategy to trade would be to hold on to the long positions with a trailing stop-loss mechanism. Overall, the uptrend is intact, and we expect levels of 19500. In terms of levels, 19230- 19200 shall act as a crucial support zone while 19380 - 19400 shall act as a crucial resistance zone.'

Commenting on the outlook of Bank Nifty, Jatin Gedia said "As far as Bank Nifty is concerned, the Index has witnessed follow through buying interest and is hitting New All time highs along with the Nifty which is a bullish sign. The daily Bollinger bands are expanding and the prices are moving along the upper band indicating that the positive momentum is likely to continue. The daily momentum indicator has triggered a fresh positive crossover which is a buy signal. Thus, both price and momentum indicators are suggesting a further upside in the Bank Nifty. On the upside we expect it to target levels of 45500."

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking, has recommended 2 stocks to buy today i.e. Tuesday, 4th July.

Indraprastha Gas Limited

The stock is trading in a broad-based channel with double-bottom pattern support in the daily chart. Positive crossover in MACD is observed and RSI is sustaining above 62 levels. In the last one week delivery volume has increased significantly. Price is sustaining above 20 EMA confirming a bullish trend. One can initiate a long position at cmp 482.7 for the target price of 497. SL can be kept as 475.

Eicher Motors

Buy EICHERMOT in cash @ Rs 3630, stop-loss Rs 3500, target price Rs 3850

EICHERMOT, currently trading at 3630, has recently experienced a breakout above its 20-day Exponential Moving Average (EMA) after encountering resistance for approximately two weeks. Furthermore, it is currently trading above all its crucial EMAs, including the 50-day, 100-day, and 200-day EMAs. It is worth noting that the stock has a significant support level at 3500, and if this level is breached, our analysis may prove to be incorrect.

Additionally, the Relative Strength Index (RSI) has demonstrated a positive crossover and currently stands at 58.
Considering the aforementioned technical indicators, it appears to be a favourable opportunity to consider purchasing EICHERMOT at its current price of 3630. The potential target for this trade is 3850, while it is recommended to set a stop-loss order at 3500 to manage risk effectively.

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.