Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Today, 4th Aug

On Thursday, the Sensex and Nifty 50 ended lower for the third straight day. The S&P BSE Sensex had a 0.82% drop, closing at 65,240.68, while the Nifty 50 index saw a 0.74% slump, ending at 19,381.65. All major sectoral indices closed in the red, with the exception of the pharmaceutical, healthcare, and media sectors. Titan, ONGC, Bajaj FinServ, ICICI Bank, and Nestle were among the Nifty50 pack's top poor performers. Contrarily, among the winners were Adani Enterprises, Adani Ports, Eicher Motors, Divis Labs, and Hindalco.

Nifty Prediction

Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said, "The Nifty opened a gap down on Thursday and continued to drift lower throughout the day to close in the negative down ~145 points. On the daily charts, we can observe that the Nifty has witnessed follow-through selling pressure and closed in the negative for the second consecutive session. On the downside, it has drifted towards a 40-day moving average (19285) which can act as an immediate support zone to watch out for. On the upside, the key hourly moving average placed in the range 19560 - 19590 shall act as an immediate hurdle zone from a short-term perspective. Considering the sharp fall in the last couple of trading sessions we can expect a pullback/consolidation over the next few trading sessions. Overall, the trend is still negative, and we expect levels of 19100 from a short-term perspective."

Bank Nifty Prediction

Commenting on the outlook of Bank Nifty today, Jatin Gedia said, "Bank Nifty has also witnessed a continuation of the fall. It has closed below the 40-day moving average (44861) which is a sign of weakness. On the downside, the fall appears overstretched and hence a pullback cannot be ruled out. It can bounce till 45000 - 45200 where the key hourly moving averages are placed. Overall, the trend is still negative and we expect it to drift lower to 44000 in the short term."

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy today, 4th August.

Aditya Birla Fashion and Retail

Buy ABFRL in cash @ Rs 220.95, Stop-loss: Rs 215, Target: Rs 230.

The stock has bounced from the strong support of 216.50 levels which is also 20 EMA levels. Currently stock is moving above 20 and 50-Day EMA. The stock has a small resistance close to 223.7 levels. Any dip in the stock can be a buying opportunity. Once stock crosses the above-mentioned resistance stock can move towards 230 levels and higher. Momentum indicator RSI is currently around 59 levels indicating strength.

With a medium-term outlook, one can buy ABFRL at a CMP of 220.95 with a SL of 215 for a target price of 230.

Ajanta Pharma

Buy AJANTPHARM in cash @ Rs 1721, SL: Rs 1685, Target: Rs 1805

Ajanta Pharma, currently trading at 1721, has exhibited favourable market conditions that indicate a potential mid-term upward trend. Notably, the stock recently experienced a 2-month breakout with substantial volumes at 1550, underlining increasing market interest and confidence in the company's performance.

The stock's strong performance on weekly charts is noteworthy, as it comfortably trades above its moving averages. This indicates positive momentum and suggests a robust underlying trend in the company's stock price. Furthermore, the Relative Strength Index (RSI) on the weekly charts, at 80, indicates strength and implies the potential for further upward movement in the near future.
Additionally, on weekly charts the Bollinger Band has shown signs of expansion, signaling an increase in market volatility. Such conditions often precede significant price movements, and with the stock currently exhibiting good volume and strength, a promising uptrend is anticipated.

Based on the above technical analysis, Ajanta Pharma is projected to reach a Short-term target range of 1805. Investors and traders may find this an opportune time to consider the stock for potential gains, given the favourable market indicators and the company's positive performance outlook.

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.