Day Trading Stocks: 2 Buy/Sell Picks By Sumeet Bagadia On Tuesday, 27th August

After Federal Reserve Chairman Powell declared that "the time has come" for interest rate cuts, Indian markets received a boost today and followed his global counterparts. Now that the Nifty is back over 25,000, it is just 68 points short of surpassing its all-time high. The country's benchmark indices began the day higher, following global patterns. The Nifty opened the day higher and held steady throughout the trading session, wrapping up at 25,011 levels to close positively. Technically speaking, the index has closed over the 25,000 mark for the first time, broken through the 24,960 gap, and produced a big green candle on the chart pattern. Although the Bank Nifty started the day higher, profit-booking ensued as it hit trend line resistance. At 51,148 points, the index did, however, end the day on a high note.

Market Outlook

Rajesh Bhosale, Equity Technical Analyst, Angel One said, "At the start of the August series, prices faced volatility with significant corrections and bearish gaps. However, as the series concludes, prices have staged a strong recovery, approaching their all-time highs. Today's bullish move, marked by a gap up, suggests that prices might soon enter uncharted territory. Traders should maintain a positive outlook and consider any dips as buying opportunities. The gap around 24850 now serves as immediate support followed by 24600 as key support, while resistance is expected around 25100 and 25400, with the 100-point interval (rounded-off) potentially acting as resistance due to the monthly expiry. Unlike the end-of-July rally, current indicators are not in the overbought zone, signaling the potential for further upside but also showing negative divergence. Hence, traders should avoid being complacent and use a selective approach."

"While the banking sector remains subdued, metals and the IT sector have outperformed. Going ahead, traders should focus on the right themes for better performance," the analyst further added.

Stocks To Buy Today

Considering the Nifty index is currently only a few points away from its all-time high of 25,078 today, Choice Broking executive director Sumeet Bagadia recommended buying two intraday stocks on 27th August.

Affle (India)

Buy AFFLE in cash @ 1701.05, stop-loss @ 1640, target @ 1800

AFFLE is currently positioned at 1701.05 levels, reflecting a solid foundation established at the support level of 1640. The consolidation and base formation at this support level signify stability in the stock's performance. Additionally, AFFLE exhibits resilience by trading above crucial moving averages, affirming its inherent strength.
While facing a minor resistance at 1717 levels, a breakout beyond this threshold could pave the way for further upward momentum. Sustaining levels above 1717 may propel the stock towards the next target at 1800 levels, presenting a promising outlook for investors.

Reinforcing the positive sentiment, the Relative Strength Index (RSI) comfortably rests at 71.01 levels, indicating a favourable balance between buying and selling pressures. The technical parameters collectively suggest a constructive environment for AFFLE, encouraging potential bullish movements in the near term. Investors may find opportunities in this upward trajectory, particularly on confirmation of a sustained breakthrough above the resistance level.

Based on the above technical analysis we recommend buying AFFLE at CMP of 1701.05 for a medium term outlook with a stop loss of 1640 for targets of 1800.

Deep Industries

Buy DEEPINDS in cash @ 378.2, stop-loss @ 364, target @ 399

DEEPINDS is exhibiting strong bullish momentum, currently trading at an all-time high of 389.85 levels. The recent breakout above the crucial resistance at 355 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, DEEPINDS 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 72.1 levels.

For traders, keeping an eye on the strong support near 364 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, DEEPINDS 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 DEEPINDS and the CMP of 378.2 with a stop loss of 364 for the target of 399.

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.