Trade Call: Day Trading Guide By Sumeet Bagadia On Monday, 29th July

The Nifty50 hit a fresh high of 24,861.15 after Finance Minister Nirmala Sitharaman raised capital gains taxes and the STT on FnO trading, extending the winning run of the Indian benchmark indices to eight straight weeks. The Bank Nifty fell for the third straight week, closing at 51,295.95, down roughly 1.86%, while the Nifty ended the week at 24,834.85, up 1.24% from the previous week. The current Q1 results season and other global cues, such as the US FOMC Meeting, the US Q2 2024 Earnings Season, and the Bank of Japan Interest Rate Decision, will likely steer the market going forward.

Market Outlook

Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd said, "The outlook for the market will be guided by the major domestic and global economic data such as India Infrastructure Output (YoY) (Jun), HSBC India Manufacturing PMI (Jul), US JOLTs Job Openings (Jun), China Manufacturing PMI (Jul), US ADP Nonfarm Employment Change (Jul), UK BoE Interest Rate Decision (Aug), US ISM Manufacturing PMI (Jul), US Nonfarm Payrolls (Jul) and FOMC Press Conference."

Nifty Prediction

"The Nifty index has formed a robust bullish candle on the daily chart, reaching a fresh all-time high. The immediate resistance level is at 25,000, and trading above this threshold could signal a strong bull market which can take the index towards 25,400. Conversely, support is identified at 24,500. The overall market structure remains bullish, indicating a buy-on-dips strategy. However, a break below the 24,500 level may suggest potential profit booking," commented Arvinder Singh Nanda.

Bank Nifty Prediction

"The Nifty Bank index has demonstrated a robust recovery following a period of profit booking and formed a strong Marubozu candle, indicating that it has bottomed out and is poised for a fresh round of buying. This bullish sentiment is expected to intensify if the index moves above 51,500, with resistance seen at 52,000. On the downside, support levels are 51,000 and 50,800. This formation suggests a potential shift in market sentiment, paving the way for renewed upward momentum," Arvinder Singh Nanda predicted.

Stocks To Buy Today

On Monday, July 29, Choice Broking's executive director Sumeet Bagadia recommended buying two stocks.

Arvind Smartspaces

Buy ARVSMART in cash @ 802.8, Stop-loss @ 772, target @ 842

ARVSMART is currently positioned at 802.8 levels, reflecting a solid foundation established at the support level of 772. The consolidation and base formation at this support level signify stability in the stock's performance. Additionally, ARVSMART exhibits resilience by trading above crucial moving averages, affirming its inherent strength.
While facing a minor resistance at 826 levels, a breakout beyond this threshold could pave the way for further upward momentum. Sustaining levels above 826 may propel the stock towards the next target at 842 levels, presenting a promising outlook for investors.

Reinforcing the positive sentiment, the Relative Strength Index (RSI) comfortably rests at 69.28 levels, indicating a favourable balance between buying and selling pressures. The technical parameters collectively suggest a constructive environment for ARVSMART, encouraging potential bullish movements in the near term. Investors may find opportunities in this upward trajectory, particularly on confirmation of a sustained breakthrough above the resistance level.

Based on the above technical analysis we recommend buying ARVSMART at CMP of 802.8 for a medium term outlook with a stop loss of 772 for targets of 842.

Associated Alcohols & Breweries

Buy ASALCBR in cash @ 799.5, Stop-loss: Rs 771, target: Rs 840

The analysis suggests a positive outlook for ASALCBR based on the daily chart. The stock has shown a consistent higher high and higher low pattern over the past 05 days, with a recent breakout above the neckline indicating a potential upward movement. The increase in trading volume and the stock trading above the Volume Weighted Average Price (VWAP) for short term is 788 further support a bullish scenario.

Additionally, ASALCBR is trading above its 20-day, 50-day, and 200-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given these factors, the recommendation is to buy ASALCBR in cash at the current market price (CMP) of 799.5, targeting 840, with a stop-loss at 771.

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.