Day Trading Guide For Monday: From Tata Steel To Vodafone, 3 Stocks To Buy/Sell On 4th September

NSE Nifty climbed by 181 points and concluded the day at 19,435 levels, BSE Sensex climbed by 555 points and reached 65,387 levels, and Bank Nifty increased by 446 points and reached 44,436 levels on Friday. All sectors rallied, with the exception of Pharma, and the broader market also ended in the green, up over 1%. Metals, Oil & Gas, PSU Bank, and Automobiles all had significant gains. Due to mixed market trends on the domestic and international fronts, the week was very turbulent.

Market Outlook

"Investor sentiments were mostly cloudy due to mixed market trends on the global and domestic fronts. Concerns about the progress of US policy measures weighed on both domestic and global markets after the Fed Chair expressed his commitment to managing inflation within target bounds. Additionally, lacklustre economic data from Europe contributed to the downturns in the domestic market, though domestically focused small and mid-caps remained resilient. As the week progressed, investors regained optimism regarding a policy rate hike pause following the arrival of subdued economic data. However, the impact of the same on the domestic market was limited as investors awaited domestic GDP data," said Vinod Nair, Head of Research at Geojit Financial services.

"Several weak economic indicators from the US, including softer labour market data, a moderated GDP figure, and US PCE inflation aligning with expectations, increased the likelihood of the Fed pausing its rate tightening. The domestic market witnessed a significant rally at the end of the week, driven by higher-than-expected domestic manufacturing PMI and positive GDP growth data, reflecting a robust economic outlook. Favourable global cues also played a role in this upturn. Notably, there was heavy buying in metal stocks in anticipation of further stimulus measures from the Chinese government. Auto stocks also performed well, buoyed by strong sales figures. In the absence of any major triggers from the domestic market, sentiments will be driven by global cues, including the release of US payroll and PMI data," Vinod Nair further stated.

Nifty Outlook

Rupak De, Senior Technical analyst at LKP Securities said, "Nifty has started the September series on a bullish note, as the index has moved above the 21EMA for the first time in several days. This suggests the potential for a bullish reversal. Additionally, the index has broken out of a falling channel, further indicating increasing bullish sentiment. Looking at the higher end of the spectrum, there is now a resistance level at 19,530 points. If the Nifty manages to breach this resistance, it could signal a continuation of the uptrend. On the lower end, there is strong support at 19,340 points."

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "Bulls have regained strength and successfully defended the crucial support zone of 44,000-43,800. This area also witnesses fresh put writing, indicating strong support. The next immediate hurdle for the index is positioned at 44,500. A successful breakout above this level is likely to trigger a fresh upward movement. The overall sentiment and undertone in the Bank Nifty Index remain bullish, as long as the mentioned support levels of 44,000-43,800 are held on a closing basis."

Intraday Stocks To Buy On Monday

Here are the best or top intraday stocks to buy on Monday, 4th September, as recommended by AR Ramachandran from Tips2Trades.

Tata Steel

Tata Steel is bullish but also overbought on the Daily charts with next resistance at 129.65. Investors should book profits at current levels as a daily close below support of 123 could lead to a target of 114.5 in the near term.

DCM Shriram

DCM Shriram is bullish but also overbought on the Daily charts with next resistance at 1120. Investors should be booking profits at current levels as a daily close below support of 1007 could lead to a target of 825 in the near term.

Vodafone Idea

Vodafone Idea is bullish but also overbought on the Daily charts with next resistance at 11.80. Investors should be booking profits at current levels as a daily close below support of 9.15 could lead to a target of 7.5 in the near term.

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.