Trade Call: Technical Stock Picks By VLA Ambala On Wednesday, 7th August

Despite opening with almost a 1% gap on Tuesday, the Nifty index failed to gain support and ended the day around the previous day's closing near the 24,011.55 mark. On the other hand, Bank Nifty closed the session at 49,765.15.

V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) said, currently, the Nifty index is trading nearly 1,100 points below its all-time high, and there is still a probability of further decline as prices continue to be in the overbought zone on the monthly timeframe. If Nifty fails to take support at the 50-day EMA, it may test the 23,500 range in 2-4 days. Meanwhile, the dollar's all-time low has been eroding global purchasing power, and concerns about unemployment and inflation continue to weigh on the economy. These issues also triggered mixed sentiments in global markets.

"For instance, the Nikkei slipped 15% in the previous session but recovered around 10% on Tuesday, while the Strait Times fell nearly 1%. Due to these uncertainties, I advise caution and urge market participants to wait before making fresh investments or averaging existing positions. Meanwhile, the ongoing political crisis in Bangladesh could create opportunities in certain sectors of the Indian market, like textiles. So, in such a situation, any dip in high-quality stocks should be treated as a buying opportunity," VLA Ambala added.

Market View for 7 August 2024, Wednesday

"For the Nifty index, the key support levels for today's trading session will be between 23,850 and 24,600, whereas resistance will likely be between 24,050 and 24,120. On the other hand, the Bank Nifty Index could find key support between levels 49,650 and 49,550 and witness 49,970 and 50,200, acting as their major resistance points," VLA Ambala predicted.

Stocks to Checkout on 7 August 2024, Wednesday

VLA Ambala has recommended 2 stocks to buy or sell today based on swing analysis.

Zomato

Sell: Rs. 253/251
Target: Rs. 247/245/243/240
Stop Loss: Rs. 256
Holding Period: Intraday

RAILTEL

Sell: Rs. 470/475
Target: Rs. 462/450/430
Stop Loss: Rs. 485
Holding Period: Intraday

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.