Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Today, 3rd Aug

In light of unfavourable economic statistics and a downgrade in the US sovereign credit rating, domestic equities came under a bear market on Wednesday, following weak global cues. The Bank Nifty index ended 596 points lower at 44,995 levels, the NSE Nifty index finished 207 points lower at 19,526 levels, and the BSE Sensex plunged 676 points and closed at 65,782 levels. With the Nifty midcap 100 and small-cap 100 down more than 1%, the broader market also suffered. PSU Bank, Metals, and Auto were the top losers collectively as all sectors closed in the red.

Nifty Prediction

Commenting on the outlook of Nifty today, Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said, "On the daily charts, we can observe that the Nifty has closed below the 20-day moving average (19,622) which was holding on as support since the up move started in April 2023 which is a sign of short-term weakness.The daily momentum indicator has a negative crossover which is a sell signal, and the indicator is still away from the equilibrium line indicating that the weakness can continue.

On the hourly charts, the nifty has witnessed a bounce back from the lower end of the falling channel, however, it is unlikely to result in a trend reversal. We expect Nifty to continue with the weakness and on the downside, we expect it to target levels of 19,100 from a short-term perspective. Crucial support levels to keep handy are 19,420 - 19,400 and on the upside, 19,600 - 19,630 is the immediate hurdle zone."

Bank Nifty Prediction

"Bank Nifty has also witnessed a sharp decline and it has decisively closed below the 20-day moving average (45,400) which is a sign of weakness. With the daily momentum indicator also having a negative crossover which is a sell signal, thus, both the price and momentum indicator is suggesting a further correction. On the way down 44,000 is the short-term target with a reversal placed at 45,800," said Jatin Gedia.

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy today, 3rd August.

Voltas

VOLTAS has revealed a gradual upward movement in the larger time frame after decent consolidation. ADX remains at a level of 24 indicating that the stock currently remains moderately bullish. RSI is positively skewed, indicating favorable price action among investors potentially supporting the continuation of the upward trend. Furthermore, the increasing delivery volume indicates higher participation and interest from market participants.

One can initiate a long position at a CMP of Rs 801.1 for the target price of Rs 827. SL can be kept as Rs 785.

Marico

Buy MARICO in Cash @ Rs 562.80, SL: Rs 550, Target: Rs 585

The stock is currently trading at 562.80 levels. The stock has bounced back from the strong support of 554.55 levels. The stock has strongly moved on the higher side and hence we can witness a breakout on charts. This breakout is supported by good volumes which indicates strength. Now any dip in the stock around 555 levels will be a buying opportunity. A small resistance can be witnessed near 567 levels, and once stock crosses the mentioned level MARICO can now further move towards 585 levels and higher. The investors holding from lower levels should keep trailing stop loss.

According to the aforementioned technical analysis, we advise buying MARICO at a CMP of 562.80 for the target of 585. If the stock closes below 550, our analysis will be 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.