Stocks To Buy: Technical Picks By VLA Ambala On 5th August For Swing Traders

During Friday's session, the Nifty index touched an all-time high and closed above the 25,000 mark. Notably, Nifty opened the market session about 1% lower than its previous closing day. The current market is influenced by broader sentiments and liquidity inflows from domestic hands. Amid this high valuation, the overall trend remains bullish, as seen by the weekly and monthly RSI readings that were over 75. Meanwhile, the daily RSI cooled to 60, with the price trading near 24,720. It should be noted that the price deviation from the 20-day EMA is about 1%, and we are likely to observe a dip of 5% to 12% from the 25,000 mark soon, which can be a lucrative buying opportunity in the bullish trend.

"As for swing traders or those with a short-term view, stocks currently trading or consolidating in the support range should be on their radar. In the current market situation, sectors such as Private Banks, PSU Banks, and Financial Services may find support after a corrective move in the next 2-5 days. In Friday's session, the volatility index, India VIX, also surged more than 10% in intraday, suggesting increased market uncertainty. This volatility could also be credited to the US PMI data, which shows a rise in unemployment in the US," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

"On Friday, Nifty also formed a bearish candlestick pattern on the daily timeframe and closed the day with a 1.30% decline. If the market opens on a flat note or with a slight gap in the next session, I would advise traders to average their positions at dips or initiate fresh long positions, as potential opportunities could arise in the market soon," VLA Ambala recommended.

Market View for 5 August 2024, Monday

"For the Nifty index, the key support levels for today's trading session will be between 24,520 and 24,440, whereas resistance will likely be between 24,780 and 24,860. On the other hand, the Bank Nifty Index could find key support between levels 50,920, 50,870, or 50,700, and witness 51,640 and 51,800, acting as their major resistance points," VLA Ambala predicted.

Stocks to Checkout on 5 August 2024, Monday

RKFORGE

• Buy: Rs. 835-850
• Target: Rs. 900/930/950/1000/1040
• Stop Loss: Rs. 760
• Holding Period: 3 to 8 Weeks

TANLA

• Buy: Rs. 960-980
• Target: Rs. 1020/1140/1150/1170/1200
• Stop Loss: Rs. 920
• Holding Period: 3 to 8 Weeks

Note: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behaviour, and technical analysis.

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.