Trade Call: Day Trading Guide By Sumeet Bagadia On Friday, 25th July

The post-budget effect caused the Indian benchmark indexes to close on a negative note on Wednesday, which was sparked by clashing global cues. The Sensex ended 280.16 down at 80,148.88, and the Nifty 50 index lost 66 points before closing at 24415. At the 11.76 zone, the India Vix fell 7.8% further. The oil and gas, consumer durables, pharmaceutical, and real estate sectors had strong buying pressure, while the banking, financial services, and FMCG sectors saw strong selling pressure. Market observers will be focussing on Adani Green Energy, Nestle India, DLF, Tech Mahindra, Adani Energy Solutions, Canara Bank, Ashok Leyland, and Mphasis today as these companies release their Q1 earnings.

Nifty Outlook

"On the daily timeframe, Nifty formed a Doji with a longer lower tail, indicating an indecisive trend. The high of 24,504.25 was made during the opening session, but bulls failed to maintain these levels throughout the day. The India VIX, the fear gauge, dropped significantly by 7.7% to 11.78 and this substantial decrease could reverse and rise if the index falls below the crucial support of 24,330. On the flip side, crossing the 24,600 level would likely resume the uptrend," said Om Mehra, Technical Analyst, SAMCO Securities.

Bank Nifty Outlook

"The index has moved below its short-term 10 and 20-day moving averages (DMA). The 50-day moving average, around 50,600, serves as an important support zone for the next session. The daily RSI stands at 45, significantly below the neutral 50 level, indicating a diminishing bullish momentum. The 51,800-51,850 would be an ideal range to sell for the short term. Bank Nifty is likely to remain weak unless it crosses the 52,100 mark," Om Mehra commented.

Stocks To Buy Today

On Thursday, July 25, Choice Broking's executive director Sumeet Bagadia recommended buying two stocks.

Ashoka Buildcon

Buy ASHOKA in cash @ Rs 259.8, STOP-LOSS: Rs 250, TARGET: Rs 272

ASHOKA is currently trading at Rs 259.8. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of Rs 245 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching Rs 272 levels. On the downside, substantial support is evident near Rs 250.

Furthermore, ASHOKA is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 68, signalling an upward trajectory and confirming an increase in buying momentum.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 250 to protect the investment in case of an unexpected market reversal.

In summary, considering the technical analysis and prevailing market conditions, ASHOKA appears to present a promising buying opportunity for those targeting a Rs 272 price objective, contingent upon the implementation of prudent risk management measures.

Doms Industries

Buy DOMS in cash @ Rs 2494, STOP-LOSS @ 2410, Target @ 2626

DOMS is exhibiting strong bullish momentum, currently trading at an all-time high of 2539.45 levels. The recent breakout above the crucial resistance at 2350 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, DOMS is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 76.22 levels.

For traders, keeping an eye on the strong support near 2410 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, DOMS current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying DOMS and the CMP of 2494 with a stop loss of 2410 for the target of 2626.

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.