Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Or Sell On Wednesday, 12th July

The Nifty ended Tuesday's trading day at 19439.40, up 83.50 points, Bank Nifty ended at 44745, down 115.80 points and Sensex ended 0.42% higher at 65,617.84 level. Each of the Nifty Auto, Consumer Durables, FMCG, Healthcare, and Pharma indices climbed by more than 1%. However, Nifty Financial Services, Nifty Bank, Metal, and PSU Bank, on the other hand, ended on a red note. Due to the fact that TCS and HCL Tech will reveal their Q1FY24 on Wednesday and that investors will be keeping an eye on the announcement of inflation statistics for the US and India on the same day, the market is expected to stay turbulent.

Market Outlook

Commenting on the outlook of Nifty, Sumeet Bagadia, Executive Director of Choice Broking said, "Nifty has demonstrated resilience by successfully holding the 19400 levels twice since the beginning of July. Conversely, Bank Nifty has been forming lower lows over the past week, indicating its weakness compared to Nifty. Looking ahead, it is crucial for Nifty to maintain the significant support level of 19400, considering the observable weakness in Bank Nifty. Additionally, Nifty faces resistance in the range of 19480-19550. On the options front, Nifty has support at 19400 and resistance at 19500."

"For Bank Nifty, support is found at 44500-44200, with the 44500 level coinciding with the 20-day exponential moving average (ema). On the upside, resistance is expected around 45300-45500. In summary, the benchmarks are currently displaying a sideways to negative bias, and investors should exercise caution," he said.

Commenting on the market outlook on Wednesday, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said "Nifty has been trading between 19400-19500 range for the last 6 trading sessions and has shown strength at lower levels. Even today Nifty held on to its gains despite profit booking in several banking and Financial heavyweights. Going forward, we expect the positive momentum to continue on the back of healthy earnings, consistent FII inflows, and improving monsoon. Technology sector is likely to remain in action as TCS and HCL Tech will announce their results on Wednesday. Investors would also watch for India and US's inflation data to be released Wednesday."

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy today i.e. Wednesday, 12th July.

BPCL

Buy BPCL in Cash @ Rs 390.90, stop loss Rs 380, target Rs 410

BPCL is currently trading at 390.90 levels, comfortably above the key moving averages including the 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages (EMA). The stock has been consolidating within the range of 385-398.5 levels over the past four days. Moreover, a bullish candlestick pattern has formed on the daily charts, indicating a positive sentiment for the stock. A minor resistance level is observed near the upper end of the range at 98.5 levels. If the stock manages to break above this resistance level, it is expected to move towards the target of 410 levels and potentially higher.

Based on this analysis, one may consider buying BPCL at the CMP of 390.90, setting a stop loss at 380, and aiming for a target of 410.

Tech Mahindra

Buy TECHM in cash @ Rs 1161, stop loss Rs 1135, target Rs 1210

TECHM, has exhibited a consolidation phase over the past four days, maintaining its position around the 1145 levels. Presently, the stock is trading at 1161 levels. A notable aspect is that the stock is trading above its crucial moving averages of 20, 50, and 100, indicating a bullish sentiment in the market.

There is a minor resistance level at 1183, and a successful breach of this level could serve as a catalyst for further upward movement in the stock's price. It is worth noting that the Relative Strength Index (RSI) currently stands at 62 and is trending upwards, which reflects a growing buying interest in TECHM. Considering these factors, TECHM appears to be an attractive buy opportunity.
However, it is prudent for investors to exercise caution and closely monitor the stock's performance in case it drops below the 1135 level. Such a decline might negate the favourable outlook previously mentioned. Setting a short-term goal of 1210 seems feasible given the current market conditions.

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.