Trade Call: Day Trading Guide By Sumeet Bagadia On Friday, 26th July

Weak global cues caused the domestic stock market to open badly on Thursday. Following this, the Nifty opened lower and hit a low of 24,210. Nonetheless, there was a lot of buying activity in the index, which enabled the Nifty to end F&O expiry day flat at 24,406. Throughout the day, the Bank Nifty index was under pressure, having opened lower than usual. Consequently, Bank Nifty ended the day at 50,889, down from where it started. As the firms release their Q1 results today, investors' attention will be focused on Power Grid, Interglobe Aviation, Cipla, Cholamandalam Investment and Finance Company, IndusInd Bank, Shriram Finance, and SBI Cards & Payment Services.

Nifty Outlook

"Technically, the index on a daily scale has formed a bullish candle near the 21-DEMA support and managed to defend the 24,200 level. Thus, 24,200 and 24,000 will serve as short-term support for the Nifty. On the upside, the index is facing resistance near the 24,620, followed by 24,860," said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bank Nifty Outlook

"Technically, the index on a daily scale has formed a tiny green candle but failed to close above the 51,100 level, indicating weakness. As long as the index holds below 51,100, weakness is likely to continue. On the downside, 50,500 and 50,000 will act as support levels," commented Hrishikesh Yedve.

Stocks To Buy Today

Executive director of Choice Broking Sumeet Bagadia suggested purchasing two stocks on Friday, July 26.

BASF India

Buy BASF in cash @ 6172.95, SL @ 5950, TGT @ 6464

BASF is exhibiting strong bullish momentum, currently trading at an all-time high of 6200 levels. The recent breakout above the crucial resistance at 5900 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, BASF 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 74.45 levels.

For traders, keeping an eye on the strong support near 5950 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, BASF 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 BASF and the CMP of 6172.95 with a stop loss of 5950 for the target of 6464.

Electrosteel Castings

Buy ELECTCAST in cash @ 211.03, SL 204, TGT 222

ELECTCAST daily chart analysis reveals a notable shift in market dynamics, transitioning from a period of minor declines and sideways consolidation to a promising upside bounce. The current trading session reflects an up move, potentially signalling an upside breakout forming a triple breakout pattern in the chart indicates strong bullish momentum, with multiple resistance levels being breached consecutively. This development aligns with a positive short-term trend, further reinforced by a surge in trading volume.

Key technical indicators, such as the Relative Strength Index (RSI) at 64.63, underscore the stock's positive momentum. The RSI not only exhibits positive signals but the stock is also trading above crucial moving averages-specifically, the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). This convergence suggests sustained strength in ELECTCAST price action.

Based on the above analysis we recommend buying ELECTCAST in cash at CMP of 211.03 for the target of 222 with a stop loss of 204.

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.