2 Good Stocks To Invest In: Market Trading Guide By VLA Ambala On Tuesday, 3rd September

In Monday's market session, the Nifty index started on a strong note, gaining 0.50% and hitting a new all-time high of 25,333.65. However, it could not sustain the momentum and closed below the day's opening, forming a Bearish Belt Hold candlestick pattern on the daily timeframe. Meanwhile, the India VIX saw an increase of 5%, reflecting the increased market volatility. During the latest session, except for AU Banks and HDFC, all other Bank Nifty components concluded with gains.

V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) said, "notably, in benchmark indices and large-cap stocks, whenever the RSI enters the overbought zone, consolidation or correction shortly follows. Our market is currently experiencing this trend and is trading in an overbought zone, especially on the monthly frame, above 82. In such a situation, it's better to focus on undervalued stocks than those already overbought, regardless of their market cap. Despite the risk of a correction, the overall market remains in a bullish phase. I recommend market participants stay invested in this situation, as any dip between 5-15% can offer a decent averaging opportunity."

Nifty & Bank Nifty Prediction Today

For the Nifty index, the key support levels for today's trading session will be between 25,200 and 25,120 whereas resistance will likely be between 25,340 and 25,400. On the other hand, the Bank Nifty Index could find key support between levels 51,450 and 51,250, and witness 51,750 and 51,950, acting as their major resistance points, VLA Ambala predicted.

Market Outlook Today

Market sentiment has shifted from bullish to sideways, though it still favors a "Buy on Dips" approach. The index's "Open Equal to High" candlestick formation and the narrow trading range between 25,330 and 25,200 will be key levels to watch for future direction. The index is trading within an upward-sloping channel, with the 20-EMA at 25,200 providing strong downside support. Additionally, aggressive put writers have established significant downside protection between 25,100 and 25,200. The index remains in a tight range between 25,330 and 25,200, and a breakout on either side will provide further direction for the upcoming sessions. A break and sustained move above 25,350 is needed to regain upward momentum, said Dhupesh Dhameja, Technical Analyst, SAMCO Securities.

Stocks to Checkout on 3 September 2024, Tuesday

VLA Ambala has recommended 2 stocks for short-term investors looking for healthy gains in a holding period of 1 to 7 weeks.

ADANIENSOL

• Buy: Rs. 1025/1028
• Target: Rs. 1040/1055/1080/1100
• Stop Loss: Rs. 980
• Holding Period: 1-7 Weeks

AWL

• Buy: Rs. 360/377
• Target: Rs. 400/415/440/470/500
• Stop Loss: Rs. 330
• Holding Period: 1-7 Weeks

Note V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behaviour, and technical analysis.

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.