Trade Call: Day Trading Guide By Sumeet Bagadia On Tuesday, 30th July

Monday's opening gap for domestic benchmark indices was positive due to encouraging global signs. Because of this, the Nifty reached a new all-time high of 24,999.75 before profit booking occurred and the day ended flat at 24,836 levels. The Banknifty index had buying activity in the first half and began positively, reaching a high of 52,340. But there was an immense profit booking on the index, which led to Banknifty levelling out at 51,406 points. Market watchers will concentrate on Q1 results and follow global cues with an eye on certain sectors like banking and financial services as this week's attention will be on the Central Bank's policy meeting globally, as the US Federal Reserve, BOE, and BOJ will publish their rate decision.

Market Outlook Today

Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One Ltd said, "The positive global trends and strong bullish sentiment from the previous session resulted in a strong start for our markets. The benchmark index Nifty50 opened with a gap up and continued its rally during the first half of the session. However, it fell short of reaching the milestone of 25000 and retreated to lower levels due to a sell-off in the latter half. As a result, the Nifty50 ended the session on a subdued note, with a negligible gain of 0.01%. The current price movement may seem insignificant for the benchmark, but the overall tone indicates a positive trend, with the bulls decisively leading in the advance-decline ratio. Additionally, the mid and small-cap stocks exhibit strong performance, outperforming the major indices and contributing to robust market sentiment."

"For the Nifty50, the intermediate support is seen around 24600, followed by sacrosanct demand around the 24500 zone in the comparable period. On the higher end, 25000 is very much in the vicinity now, and a decisive breakthrough could lead the next leg of the rally toward the 161.8% retracement of the previous week's swing at 25340 on an intermediate basis. Looking forward, we maintain a positive outlook and believe any downward movement toward the support zone mentioned will favor the Bulls on the D-Street. Meanwhile, increased participation from the broader markets is expected to provide momentum, and it is crucial to adopt a stock-centric approach for superior performance. We must also keep a close watch on global developments, as they are anticipated to act as catalysts for the immediate trend setup of our markets," Osho Krishan further added.

Stocks To Buy Today

Executive director of Choice Broking Sumeet Bagadia recommended buying two stocks on Tuesday, July 30.

Larsen and Toubro

Buy LT in Cash @ 3775, stop-loss @ Rs 3620, target @ 4060

LT is currently trading at 3775 and has recently given a notable range breakout, forming a significant bullish candle on the daily chart. This breakout follows a consolidation period near its demand zone. The move is further validated by increased trading volumes, which highlight the strength and potential durability of the bullish trend. If the price manages to sustain this breakout, it could further advance towards an upward target of 4060.

The Relative Strength Index (RSI) is at 62.36 and is trending upward, further supporting the bullish momentum. Additionally, LT has witnessed a bounce from its key moving averages, including the short-term (20 Day) and medium-term (50 Day) EMA levels, which confirms the strength of the current uptrend.

In summary, based on the favorable technical setup and key indicators (RSI and moving averages), buying LT at CMP of Rs 3775, with a stop loss at Rs 3620 and a target price of Rs 4060, presents a compelling opportunity for potential gains.

Coromandel International

Buy COROMANDEL in Cash @ 1679, stop-loss @ 1620, target @ 1800

COROMANDEL has undergone a consolidation phase after hitting a all-time high and is now trading above this range, making a new all-time high levels. This breakout is supported by significant trading volumes, which reinforce the strength and sustainability of the bullish trend. The price has to sustain above 1680 levels, to continue its upward trajectory toward a target of 1800.

The RSI is at 71.04 levels, with a positive crossover, indicating increase in the buying momentum. However, COROMANDEL is trading above its key moving averages, including the short-term (20-Day) EMA and medium-term (50-Day) EMA, indicating strength in the bullish trend.

Based on this analysis, a recommendation would be to buy COROMANDEL in cash at 1679 with a stop loss (SL) at 1620 and a target (TGT) at 1800. This trade setup aligns with the bullish technical indicators observed in the stock.

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.