Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Today, 9th Aug

On August 8 amid mixed global cues, the Indian stock market closed down. The Nifty was down 26.50 points, or 0.14 percent, at 19,570.80 at closure, and the Sensex was down 106.98 points, or 0.16 percent, at 65,846.50. The top Nifty losers were Hero MotoCorp, SBI Life Insurance, Cipla, Tech Mahindra, and Wipro, while gainers were Power Grid Corporation, Hindalco Industries, M&M, and Divis Labs. While other sectoral indices closed in red, the PSU bank index climbed by 3.3 percent and the pharma index by 0.6 percent. Small- and mid-cap BSE indices finished slightly higher.

Nifty Prediction

"The Nifty opened on a positive note on Tuesday, however, could not capitalize on the gains. It slipped during the day and closed in the negative. On the daily charts, we can observe that the Nifty has witnessed a counter-trend pullback in the past three trading sessions. It has faced resistance around the 20-day moving average (19645) and the 61.82% Fibonacci retracement level (19605) of the fall from 19795 - 19296. The rise of the past three trading sessions is overlapping and thus we are of the opinion that the Index is undergoing a complex correction and the pullback was an "X" wave pullback.

The hourly momentum indicator has a negative crossover which is a sell signal and with the daily momentum indicator already in the sell mode further supports our bearish outlook on the index. Overall, we still shall continue to maintain our negative stance on the Nifty, and we expect levels of 19100 from a short-term perspective," said Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas.

Bank Nifty Prediction

"Bank Nifty traded closed in the positive however it could not surpass the 40-hour moving average indicating selling pressure. It traded within the range of the penultimate trading session (44520 - 45120). Until the extreme of the range are not breached on either side we can expect the consolidation to continue. The daily momentum indicator has a negative crossover which is a sell signal. Thus, this pullback should be used as a selling opportunity. On the downside, we expect 44000 from a short-term perspective," said Jatin Gedia.

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy on Wednesday, 9th August.

Ashok Leyland

Buy ASHOKLEY in cash @ Rs 183.7, SL @ Rs 178, TGT @ Rs 192

The stock has corrected from the new all-time high level of 186.5 but has shown a bounce from the initial support itself which is around 178.30 levels. ASHOKLEY has formed strong support at 178.30 levels which is also 20 Day EMA. Currently, the stock is trading around 183.7 levels. A smaller resistance is visible on the charts near 186.5 levels which is also all-time high level. Once the stock overcomes the previously mentioned resistance, it will be able to move closer to the target price of 192 and higher. The stock is trading above all important moving averages. RSI is also trading comfortably at 68 levels indicating strength.

Based on the above analysis we recommend buying ASHOKLEY at a CMP of 183.7 with a medium-term target price of 192. Our analysis will be deemed void if the price closes below 178 levels.

Tata Consumer Products

Price was consolidating in defined range but has given a breakout and sustained above 840 levels. Positive crossover is shown by the 10 EMA crossing the 20 EMA. Price is also sustaining above the middle Bollinger band indicating bullishness in price action. RSI stands at 52 levels.

One can initiate a long position at Cmp 847.4 for the target price of 872. SL can be kept as 830.

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.