Stocks To Buy: Day Trading Guide By Sumeet Bagadia On Wednesday, 31st July

Tuesday's opening of the domestic benchmark indices was flat, tracking mixed global trends. After a brief fall, the Nifty had a flat opening but ultimately ended the day at 24,857, close to a flat to a positive note. Additionally, the Bank Nifty index saw flat initial trading and early-morning selling pressure. But the index bounced back, ultimately ending the day around 51,499 levels on a flat to positive note. Investors will be watching sector-specific stocks for profit booking in light of the result of the US Fed policy meeting on Wednesday, which might impact market sentiment.

Market Outlook

Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One Ltd said, "The Indian equity markets opened the session steadily, drawing insights from mixed global cues. The benchmark index gradually gained momentum post the initial opening hour and made strides towards the last swing high. However, the bears made a comeback at the highs, leading to a modest correction. Despite multiple efforts, the bulls were unable to challenge the record high, and the day ultimately concluded on a flat note."

"The narrow price range and the small-bodied candlestick pattern at higher levels indicate a potential lack of momentum and uncertainty among the buyers. Though the muted price action on a closing basis does not change much of the scenario, such lackluster moves certainly raise concerns regarding the inherent strength of the index. Technically, the 25000 milestone withholds the daunting task for the bulls, and a sustainable breakthrough could only direct the next leg of the rally in the index. On the lower end, 24600 is likely to be seen as intermediate support, followed by the sacrosanct demand at the 24500 zone in the comparable period," the analyst added.

"The advance-decline ratio continues to highlight the dominance of the bulls, particularly in the mid and small-cap segments, which bodes well for market sentiments. Thus, one needs to focus on such themes for having an outperformance while the key indices are witnessing some timidness at their pivotal zones," Osho Krishan further stated.

Stocks To Buy Today

On Wednesday, July 31, Choice Broking's executive director Sumeet Bagadia recommended buying two stocks.

Khadim India

Buy KHADIM in cash @ 424.45, stop-loss: Rs 408, target: Rs 444

KHADIM is currently trading at Rs 424.45. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of Rs 408 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching Rs 444 levels. On the downside, substantial support is evident near Rs 408

Furthermore, KHADIM is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 69.26, signalling an upward trajectory and confirming an increase in buying momentum.

In summary, considering the technical analysis and prevailing market conditions, KHADIM appears to present a promising buying opportunity for those targeting a Rs 444 price objective, contingent upon the implementation of prudent risk management measures.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 408 to protect the investment in case of an unexpected market reversal.

Kfin Technologies

Buy KFINTECH in cash @ 821.95, stop-loss: Rs 790, target: Rs 860

The daily chart analysis of KFINTECH reveals a promising outlook for the upcoming week, signalling a sustained upward movement. Notably, the stock has formed a significant higher high and higher low pattern, and the recent upward swing has successfully breached the neckline, establishing a new week high for the stock. This breakout suggests the potential for a substantial follow-through upward movement in the stock price.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The Volume Weighted Average Price (VWAP) for short term is 815 and KFINTECH stock is trading above this level this is a good sign for the stock and it could move higher. VWAP is rising upwards. Furthermore, KFINTECH is currently trading above its crucial 20-day, 50-day, and 200-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 KFINTECH in cash at CMP of 821.95 for the target of 860 with a stop loss of 790.

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.