Day Trading Guide For Monday: 2 Buy/Sell Stocks As Recommended By Sumeet Bagadia of Choice Broking

Despite volatile days, Indian equities markets produced solid gains this week. Large indices like the BSE-30 and NSE-50 had returned for the week of one percent, but the sectoral indices BSE Metals and BSE Realty had gained for the week of more than 5%. On Friday, September 1, the benchmark indices closed higher, as the Nifty was up 181.50 points or 0.94 percent at 19,435.30 at closure, and the Sensex was up 555.75 points or 0.86 percent at 65,387.16.

Market Outlook

"The Nifty opened on a flat note and witnessed buying interest throughout the day to close with gains of around ~180 points. On the daily charts we can observe that the Nifty has witnessed a sharp pullback from the 19250 zone where the Nifty has been witnessing buying interest. The daily and the hourly momentum indicator has a triggered a positive crossover with a divergence which is a bullish sign from short term perspective.

On the weekly charts, the Nifty has closed in the green after falling for five consecutive weeks which indicates that the index has reached a zone from where buying interest has emerged. Considering the above parameters we change our short term outlook on the index to positive. On the upside we expect the Nifty to target levels of 19650. In terms of levels, Crucial support zone is placed at 19330 - 19300 and immediate hurdle is placed at 19520 - 19550, said Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas.

"Bank Nifty has also witnessed a sharp pullback. It has held on to its 20 week moving average support (44144) and also closed in the green. We expect the pullback to continue over the next week as well. Daily and Hourly momentum indicator has a positive crossover which is a buy signal. We expect Bank Nifty to target levels of 45000 from short term perspective," said Jatin Gedia.

Stocks To Buy On Monday

Here are the two intraday stocks for Monday as recommended to trade by Sumeet Bagadia, Executive Director of Choice Broking.

Hindalco

Buy HINDALCO in cash @ Rs 473, Stop-loss: Rs 462, Target: Rs 492

HINDALCO, currently trading at 473, has exhibited promising technical indicators that suggest a favorable investment opportunity. After a month-long consolidation within the range of 460-445, the stock recently experienced a range breakout, indicating renewed momentum. The Relative Strength Index (RSI) stands at 62 and is trending upward, reflecting strong buying interest.

Furthermore, HINDALCO is trading above all of its key Exponential Moving Averages (EMAs) - the 20-day, 50-day, 100-day, and 200-day EMAs. This confluence of positive technical factors suggests a robust bullish sentiment surrounding the stock.

Considering the technical analysis and the breakout pattern, HINDALCO appears to be a compelling buy at its current price range of 473. In the short-term, it has the potential to reach price targets of 492, SL can be kept at 462.

UPL

Buy UPL in cash @ Rs 603, Stop-loss: Rs 590, Target: Rs 622

The current market analysis indicates that UPL is presently trading at 603. The stock has recently established a robust support level within the range of 575 to 580, demonstrating a promising consolidation phase. In a notable development, the stock has exhibited a substantial rebound, supported by noteworthy trading volumes, and has successfully surpassed a minor resistance level situated at 590.

Considering these favorable dynamics, the opportunity to initiate a position at the current price of 603 presents itself as a potentially judicious investment. Employing a stop loss strategy at 590 would serve to mitigate risk and safeguard against adverse market movements. With a strategic target of 622, the potential for capitalizing on the anticipated upward momentum further enhances the attractiveness of this proposition.

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.