Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Or Sell On Wednesday, 5th July

On Tuesday, the Indian stock market had an effortless rebound that was fueled by favourable FII inflow and strong global cues. The Sensex gained 274 points or 0.42% on Tuesday to close at 65,479.05. While the Nifty 50 reached a final level of 19,389, up 66.45 points or 0.34%. Bank Nifty gained 0.32 per cent and settled at 43954.45. The top gainers among Nifty stocks were Bajaj Finance, Bajaj Finserv, and Hero Motocorp, while the top losers were Eicher, Bharti Airtel, and Grasim.

Market Outlook

Commenting on the outlook of Nifty on Wednesday, Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas said, "The Nifty witnessed a gap-up opening for the fifth consecutive day however it could not sustain at higher levels and witnessed profit booking. It closed in the positive up ~66 points though well of the Intraday highs. The Nifty has rallied around ~800 points within a span of six trading sessions. The Hourly momentum indicator has triggered a negative crossover and could be the reason for Nifty not able to sustain at higher levels. Over the next few trading sessions, we expect the Nifty to consolidate in the range of 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 road ahead for Bank Nifty, he said "As far as Bank Nifty is concerned, the Index also witnessed profit booking at higher levels and closed well off the intraday highs. The hourly momentum indicator has a negative crossover and negative divergence which indicates a loss of momentum on the upside. Thus, after a strong up move a consolidation is likely in the short term. 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. Wednesday, 5th July.

Jindal Steel

Buy JINDALSTEL in Cash @ Rs 609.10, stop-loss: Rs 595, target price: Rs 640

JINDALSTEL has formed a bullish candle on the daily chart. The stock has successfully surpassed the important level of 605 which was a prior resistance. A small resistance is placed around 623 levels which is also a 52-day week high level. Once stock closes above the mentioned levels it can move towards 640 levels and above. The RSI indicator is trading around 69 levels indicating strength. On the weekly chart, the stock has taken support of the middle band of Bollinger band and approaching the higher band with expansion of the band.

Based on the above mentioned technical analysis we recommend buying JINDALSTEL at CMP of 609.10 levels with an SL of 595 for the target of 640.

Sun Pharma

Buy SUNPHARMA in cash @ Rs 1049, stop-loss: Rs 1028, target price: Rs 1090

Sun Pharma, is presently trading at 1049, having recently broken out from its previous range of 981-1015 that persisted for a week This breakout 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, Sun Pharma's 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, it is our professional opinion that Sun Pharma presents a favourable buying opportunity at the current price of 1049, with a target price of 1090. It is important to note that our views would be invalidated if the stock were to fall below the 1028 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.