Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Or Sell On Wednesday, 19th July

Ahead of next week's policy meetings for the US Federal Reserve, European Central Bank, and Bank of Japan, the benchmark Indian equity indices Sensex and Nifty continued their spectacular surge on Tuesday to hit fresh all-time highs of 67,007.02 and 19,819.45, respectively. The Sensex closed the day 205 points, or 0.31 per cent, higher at 66,795.14, while the Nifty ended the day 38 points, or 0.19 per cent, higher at 19,749.25. IndusInd Bank, Axis Bank, HDFC Bank, ICICI Bank, Infosys, Hindustan Unilever, Maruti, and Asian Paints were a few of the notable gainers in the Sensex pack. On the other hand, underperformers comprised Bharti Airtel, Tech Mahindra, Titan, UltraTech Cement, Tata Consultancy Services, and Tata Steel.

Market Outlook

Commenting on the outlook of stock market today, Sumeet Bagadia, Executive Director of Choice Broking said "The volume profile analysis suggests that the Index has strong support within the range of 19,550 to 19,475. Looking at the Open Interest (OI) Data, the call side exhibits the highest OI at 20,000, followed by the 19,900 strike prices. On the put side, the highest OI is observed at the 19,600 strike price. In the Bank Nifty, support levels are identified at 45,000 to 44,900, while resistance levels are situated at 45,700 to 45,900. The global market scenario remains favorable for the bullish sentiment. The weakening of the US dollar and the resulting capital inflows into emerging markets can provide resilience to the market."

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said "Continuing its current record-breaking rally, Nifty crossed the 19,800 mark - just 200 points away from the 20k zone. We expect the gradual up move in the market to continue given the positive macro and micro factors. We suggest investors to look for buy on dips strategy as the Q1 earning season is expected to be healthy. On the global front, Investors look ahead to a busy week of earnings, including quarterly results from some of the largest U.S. banks. Today's (Tuesday) release of US retail sales and IIP data would be important from US Fed's interest rate decision perspective."

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy today on Wednesday, 19th July.

Cipla

Buy CIPLA in cash @ Rs 1030, stop loss Rs 1010, target Rs 1065

The stocks have a strong support zone around the 1020-1010 zone after rising from lower levels. Additionally, the stock has surpassed resilient levels of 1000. On weekly charts, the stock displayed a bullish candle, indicating strength. The RSI indicator is also maintaining above 63 levels, showing that there is much room available for the stock to inch higher. The stock is maintaining the 20 EMA on the daily chart, indicating further solid traction.

Therefore, one can start a long position at CMP 1030 based on the technical framework.. Closing and sustaining above 1040 will move prices in the following days towards 1055-1065 levels. SL may remain at 1010.

HCL Tech

Buy HCL Tech in cash @ Rs 1167.20, stop loss Rs 1135, target @ Rs 1220

HCL Tech, a renowned technology firm, has shown a persistent increase, remaining stable around its current market price (CMP) of 1167.20. The stock is trading above its 20-, 50-, and 200-day moving averages, indicating a positive outlook. Once broken, a small resistance at 1175 levels could function as a stimulus for additional upward movement. The Relative Strength Index (RSI) is currently at 56 and rising, indicating more purchasing activity. This makes HCL Tech an appealing investment.

However, investors should exercise care and keep a watch on the stock if it falls below 1135, as this might negate the favourable outlook. A short-term goal of 1220 is feasible.

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.