Stocks To Buy: Day Trading Guide By Sumeet Bagadia On Monday, 19th August

The previous week, the Nifty50 and Sensex, the two Indian benchmark indices, broke their two-week losing run and closed in the green. Closed at 24,541.15 and 80,436.84, respectively, the Sensex gained 0.91% while the Nifty50 strengthened by 0.71%. A number of variables came together to propel the rise in the benchmark indices, which included the Japanese yen's stability, encouraging U.S. economic statistics, and falling inflation in India. Key global economic data will be widely monitored this week to determine the direction of the market, including the minutes from the FOMC meeting in the United States and Japan's inflation figures.

Nifty Prediction

"The Nifty 50 index has been consolidating since August 5 but broke out of its range on Friday, and gave breakout of rising channel on the daily charts. The weekly candle is strong and bullish, indicating that the upward momentum is likely to continue into the coming week. With the index now above 24,600, it could potentially move towards 24,800. On the downside, 24,350 is expected to act as strong support; a break below this level might lead to a retest of 24,200. A buy-on-dips strategy is recommended," said Palka Arora Chopra, Director of Master Capital Services Ltd.

Bank Nifty Prediction

"The Nifty Bank index has reversed from its low of 49,642, forming a double bottom pattern on the daily charts, which provides strong support. A doji candle has formed on the weekly charts, indicating indecision but also potential for upward movement. A breakout above 50,800 could push the index higher toward 51,300. Strong support is established at 50,200; a breach below this level might lead to a decline toward 49,700. Overall, the market sentiment remains bullish, favoring a buy-on-dips strategy," Palka Arora Chopra further added.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, suggested purchasing two technical stocks on Monday amid major domestic and global cues.

Fortis Healthcare

Buy FORTIS in cash @ 532.8, stop-loss 515, target 558

The daily chart of Fortis Healthcare Ltd. shows a strong bullish trend. The stock recently broke out of a consolidation phase, closing at Rs 532.80, a 2.04% increase. The breakout was accompanied by higher trading volumes, indicating solid market interest.

Key indicators such as the Exponential Moving Averages (EMAs) are aligned in a bullish pattern, with the stock trading well above its 20-day, 50-day, 100-day, and 200-day EMAs. This suggests sustained upward momentum.
The stock has moved past its previous resistance around Rs 520-Rs 530, and if it continues to rise, it could target higher levels, with immediate resistance near Rs 558. On the downside, support is expected at Rs 515.

Overall, Fortis Healthcare's chart indicates a strong uptrend, with the potential for further gains, provided market conditions remain favourable.

Hi-Tech Pipes

Buy HITECH in cash @ 179.57, stop-loss 173, target 188

HITECH 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 momentum 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, HITECH 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 HITECH in cash at CMP of 179.57 for the target of 188 with a stop loss of 173.

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.