Trade Bucket: Which Stocks To Buy Today For Healthy Upside? Sumeet Bagadia Explains

For the second week in a row, the domestic stock market ended higher, despite the fact that broader markets underperformed and falls were favoured by market breadth. Domestic indices ended the week well. With the exception of the auto, consumer, infrastructure, and energy indexes, most sectors saw losses during the last trading session, while the overall market trend was slightly negative.

At 24,823.15 and 81,086.21, respectively, the Nifty50 closed up 1.15% and the Sensex up 0.81%. At the Jackson Hole Economic Symposium, Federal Reserve Chairman Jerome Powell signalled clearly that the bank would cut interest rates in September's meeting. The key domestic and international economic data will direct the market's view this week. India will publish its infrastructure output figures for July on Friday, August 30, 2024. India is scheduled to announce its Q2 GDP figures on Friday, August 30, 2024.

Market Outlook This Week

"On the global front, the US market has shown resilience, with Powell indicating that the time has come for policy adjustments. He emphasized that the direction of future monetary policy is clear, but the timing and pace of rate cuts will depend on upcoming data, the evolving economic outlook, and the balance of risks. Additionally, upcoming economic data releases from Japan and the US, along with movements in the global currency market, will be crucial factors for investors to watch," said Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.

"The Indian Stock Market is expected to follow gains seen in the US stock market, as the likelihood of a "soft landing" for the global economy increases amid signs of economic softening. A potential rate cut by the Fed would likely boost market sentiment and drive up stock prices," Pravesh Gour further added.

"The outlook for the market will be guided by the major domestic and global economic data. India's release of its July infrastructure output numbers on Friday, August 30, 2024. India's Q2 GDP numbers are scheduled to be released on Friday, August 30, 2024. The Indian economy expanded by 7.8% in Q12024, maintaining its recent pattern of strong expansion. On Friday, August 30, 2024, India's infrastructure output figures for July will be made available. On the global front, USA's Durable Goods Orders (MoM) for July, USA's Initial Jobless Claims for (Aug/24), Japan's Unemployment rate in July, Japan's Industrial production and Consumer Confidence data for July, India's GDP Growth Rate YoY for Q2, USA's Core PCE Price Index (MoM) for July and USA's Personal Spending and Personal Income data for July," commented Ms. Palka Arora Chopra, Director of Master Capital Services Ltd.

Weekly Nifty Prediction

"The Nifty 50 index has shown a strong performance this week, closing near its all-time highs on the weekly charts. The index continues to display strength, with the bullish structure remaining intact. The momentum is expected to persist into the coming week, with a potential breakout above 24,900 likely driving the index towards the 25,100 and 25,400 levels. On the downside, the 24,350 level will now serve as critical weekly support," said Palka Arora Chopra.

"The Nifty is gradually moving higher, but it faces a significant resistance zone between 24,850 and 25,080. On the downside, the 24,700 to 24,650 range serves as immediate support, with 24,500 being the critical level to watch. A breakout above 25,000 or a drop below 24,500 could determine the next major trend in the market," commented Pravesh Gour.

Weekly Bank Nifty Prediction

"The Nifty Bank index has delivered a robust weekly closing, successfully breaking above its previous range. This suggests a potential increase in momentum in the coming week. A decisive breakout above the 51,100 level could propel the index higher toward the 52,000 mark. On the downside, strong support is identified at 50,300; a breach of this level may result in a decline toward 49,800," Palka Arora Chopra predicted.

"Bank Nifty has established a strong base at its 100-day moving average (DMA) and is currently trading above the 20-day moving average (DMA). However, the 51,100 to 51,500 range is a crucial supply zone. A breakout above 51,500 or a dip below 50,500 will likely determine the next significant trend in the market," Pravesh Gour predicted.

Stocks To Buy Today

Choice Broking executive director Sumeet Bagadia recommended buying two intraday stocks today, August 26, considering the possibility of a rate cut by the Fed as a catalyst to strengthen stock prices and market mood.

Welspun Living

Buy WELSPUNLIV in cash @ 197.15, stop-loss @ 190, target @ 207

WELSPUNLIV is exhibiting strong bullish momentum, currently trading at an all-time high of 198.3 levels. This breakout has been accompanied by a consolidation of the upward movement, characterized by higher highs and higher lows, 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, WELSPUNLIV 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 69.1 levels.
For traders, keeping an eye on the strong support near 190 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, WELSPUNLIV 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 WELSPUNLIV and the CMP of 197.15 with a stop loss of 190 for the target of 207.

Suven Pharmaceuticals

Buy SUVENPHAR in cash @ 1071.15, stop-loss: 1034, target: 1126

SUVENPHAR is currently trading at Rs 1071.15. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of Rs 1020 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching Rs 1126 levels. On the downside, substantial support is evident near Rs 1034.

Furthermore, SUVENPHAR 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, SUVENPHAR appears to present a promising buying opportunity for those targeting a Rs 1126 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 1034 to protect the investment in case of an unexpected market reversal.

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.