Stocks To Buy: Day Trading Guide By Sumeet Bagadia On Monday, 5th August

Amid mounting anticipation of a U.S. interest rate cut at the FOMC meeting in September, the Indian benchmark indices, the Sensex and the Nifty50, hit fresh all-time highs. The Sensex hit 82,129.49 before giving up all of its gains to end the week at 24,717.70 and 80,981.95, down 0.47% and 0.43%, respectively, while the Nifty50 touched its all-time high at 25,078.30. The Nifty's eight-week gaining record came to an end last week when it reached the milestone of 25,000 but faltered from there because of weak global cues. The Pharma and Energy sectors outperformed last week, with the IT and Realty sectors being among the most underachievers. The Volatility Index (VIX) rose from 16.38 to 18.58, indicating a surge in risk aversion and market uncertainty.

Nifty Outlook

"The Nifty index has formed a negative candle, closing the week in the red, indicating a potential further downside move in the coming week after reaching a fresh all-time high. The next support level is at 24,500, and if this level breaks, we could move towards 24,200. On the resistance side, 24,900 is the immediate level to watch, and if the index moves above this, we could see a rise towards 25,200. The market structure appears weak, suggesting a "sell on rise" approach for Monday," said Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd.

Bank Nifty Outlook

"The Nifty Bank index has also formed a negative candle, ending in the red for four consecutive weeks. This consistent downward trend indicates pressure on heavyweight stocks. The support level is at 51,000, and if this is breached, we could see a decline towards 50,500. On the upside, resistance is at 51,600, and if surpassed, the index could move towards 52,000. Overall, the market sentiment remains weak with a sideways to the bearish outlook," Arvinder Singh Nanda predicted.

Market Outlook

"This week, all focus will be on the global markets as we are seeing the first major signs of weakness after a long period of stability. This will test the strength of the Indian market, which has remained resilient due to strong domestic liquidity and a better macroeconomic outlook despite global headwinds and valuation concerns. Geopolitical tensions are also escalating, but markets are not reacting significantly, which is reflected in the declining crude oil prices. On the domestic front, the upcoming RBI policy announcement on August 8th will be important, although it is likely to remain unchanged. The last batch of Q1 earnings will drive stock-specific movements. Additionally, institutional flows will play a crucial role in market dynamics," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Stocks To Buy Today

On Monday, August 5, Choice Broking's executive director Sumeet Bagadia recommended buying two technical stocks.

GlaxoSmithKline Pharmaceuticals

Buy GLAXO in cash @ 2820.25, stop-loss: Rs 2715, target: Rs 2955

GLAXO is presently trading at 2820.25 levels. On the daily chart, the stock has formed a strong bullish momentum candle, signifying a resurgence of strength in its price action.

A robust support level is situated at 2715 levels. This confluence of support factors enhances the stock's stability and resilience.

Furthermore, GLAXO is trading above all the important moving averages, which underscores its overall bullish posture and trend.

The Relative Strength Index (RSI), a momentum indicator, is hovering around 68.5 levels. This RSI reading suggests that the stock possesses considerable strength and also It signifies a healthy and sustainable uptrend.

A minor resistance level is noticeable in the vicinity of 2866 levels. Once the stocks successfully surpass this resistance, it has the potential to advance towards the target level of 2955. This could present a favourable trading opportunity for investors and traders alike.

Based on the above analysis we recommend buying GLAXO at CMP of 2820.55 with a SL of 2715 for the target of 2955.

Minda Corporation

Buy MINDACORP in cash @ 522.95, stop-loss @ 503, target @ 550

MINDACORP is exhibiting strong bullish momentum, currently trading at an all-time high of 526.7 levels. The recent breakout above the crucial resistance at 505 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, MINDACORP 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 69.94 levels.

For traders, keeping an eye on the strong support near 503 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, MINDACORP 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 MINDACORP and the CMP of 522.95 with a stop loss of 503 for the target of 550.

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.