Shares To Buy Today: Day Trading Guide By Sumeet Bagadia of Choice Broking On Tuesday, 7th May

On Monday, selling pressure was put on to domestic benchmark indices. Nifty ended the day lower at 22,442.70, while the Nifty Bank index began the day higher but was unable to maintain higher levels, ending the day worse at 48,895. Realty was the best-performing sector, rising by more than 2.5%; noteworthy losers were PSU Banks and Media.

Nifty Outlook Today

Rupak De, Senior Technical Analyst, LKP Securities said, "Nifty mostly traded sideways throughout the day, fluctuating between 22400 and 22550. Although the index ended above the short-term moving average, the 21EMA, on the daily chart, the sentiment appears somewhat bearish due to consecutive red candles, suggesting a prevalence of sellers over buyers. In the near term, sentiment could stay subdued as long as it stays below 22500. On the downside, there's a possibility of the index sliding towards 22300."

Bank Nifty Outlook Today

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "The BankNifty index underwent a sideways trading session, with bulls successfully defending the support zone around 49000-48900. Immediate resistance is noted at 49300, and a decisive breakthrough could trigger short-covering moves towards 49500. Conversely, a significant breach of the 48900 mark may induce further selling pressure towards 48400, where the 20DMA is positioned."

Stocks To Buy Today

Choice Broking's executive director, Sumeet Bagadia, recommended buy or sell recommendations for two intraday stocks on Tuesday, May 7.

Rainbow Children's Medicare

Buy RAINBOW in cash @ Rs 1571.3, stop-loss: Rs 1515, target: Rs 1666

RAINBOW daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable higher high and higher low pattern, and the company's recent upward swing has effectively violated the neckline, establishing a new week high. This breakthrough indicates the possibility of a significant follow-through upward increase in the stock price.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The stock formed a strong bullish candle signifying a potential continuation of the uptrend following and the daily strength indicator RSI (14) is moving upwards and positioned above its reference line indicating a positive bias. Furthermore, RAINBOW is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given the overall chart pattern, the analysis suggests a favourable long trading opportunity for investors.

Based on the above analysis we recommend buying RAINBOW in cash at CMP of 1571.3 for the target of 1666 with a stop loss of 1515.

Lupin

Buy LUPIN in cash @ 1679.65, stop-loss: Rs 1620, target: Rs 1800

The technical analysis provided for LUPIN stock suggests a generally positive outlook. LUPIN is currently trading at 1679.65 levels, having recently rebounded from a support level at 1620 levels. This bounce indicates that buyers are active at this level, potentially providing a foundation for further price gains.

Furthermore, the fact that the stock is trading above key moving averages, including the 20-day, 50-day, and 200-day EMAs, indicates that it has exhibited consistent upward momentum across various timeframes. This is often seen as a bullish sign.

The Relative Strength Index (RSI) at 64.66 suggests that there is strength in the stock, but it is not yet overextended, leaving room for further price appreciation. However, there is a smaller resistance level at 1700 that the stock needs to overcome. If it successfully surpasses this resistance, it could potentially target higher levels, specifically 1800 and beyond.

According to the aforementioned technical analysis, we advise buying LUPIN at CMP of 1679.65 for the target of 1800 levels, if the stock closes below 1620, our analysis will be invalid.

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.