Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Tuesday, 29th Aug

At 7.08 a.m. on Tuesday, Gift Nifty, formerly SGX Nifty, was trading at 19,347.5, down 5.5 points or 0.03% and the index opened at 19,353 and moved in the range of an intraday high and low of 19,370.5 to 19,345.0, respectively indicating a hesitant stance in the opening session of the Sensex and Nifty 50 amid a positive trend of global cues. On Monday, the Sensex ended at 64,996.60, up 110.09 points or 0.17%, while the Nifty 50 closed at 19,306.05, up 40.25 points or 0.21%. The BSE Midcap and Smallcap indices, on the other hand, excelled with gains of 181.45 points and 242.48 points, respectively. Capital goods, automobile, financial, and pharmaceutical companies experienced the top gains, while IT stocks fell behind.

Market Outlook

The Nifty index saw put writing today at the 19300 and the 19200 levels for this week's expiry. Markets for the next few days are likely to trade between 19000 on the downside and 19600 on the upside. Bank Nifty open interest data suggests that this week's expiry is likely to happen between 44000 on the downside and 44800 on the upside. We expect Bank Nifty to be the stronger Index as we go into this week's expiry owing to a demand level being present at its current price level," said Rahul Ghose, Founder & CEO - Hedged.
"Markets are likely to remain in consolidation mode this week amidst key events including the release of domestic GDP data, monthly expiry, and domestic and global macroeconomic data. Also ~7% deficit in the Jun-Sept monsoon could keep upside limited," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

"The highly anticipated Jackson Hole meeting didn't bring much surprise, as the Fed chair expressed satisfaction with the progress of policy measures and reiterated its commitment to managing inflation within target bounds. This has raised expectations of a rate hike during the November Fed meeting. Global markets traded positively, led by Asian peers, as China's measures to support the property sector boosted sentiment. Domestically, all major sectors, along with mid and small caps, remained positive, except for the IT sector, which faced concerns related to potential rate hikes," said Vinod Nair, Head of Research at Geojit Financial Services.

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 shares to buy on Tuesday i.e. 29th August.

NMDC

At present, NMDC is trading at 122, exhibiting a robust upward momentum and finding substantial support at the 119 mark. Notably, the stock has demonstrated a commendable performance by maintaining its position above key moving averages, namely the 20-50-100-200 EMA indicators. Reinforcing this positive outlook is the Relative Strength Index (RSI), which has recently undergone a favourable crossover and is presently situated at 65.

The confluence of these technical factors suggests a promising outlook for NMDC. Should the stock succeed in sustaining its position above the critical support level of 118, it holds the potential to attain 128 levels. This projection is underpinned by the prevailing uptrend, well-supported moving averages, and the encouraging RSI dynamics. Our view will be negated if it falls below 118.

Larsen and Toubro

Buy LT in cash @ Rs 2695.35, Stop-loss: Rs 2640, Target: Rs 2765

Stock is currently trading at 2695.35 levels. On a closing basis, the stock has respected the support levels and hasn't closed below its strong support levels of 2640 which is also close to 20 Day EMA levels. LT can now progress even further towards all-time high levels and beyond. The strength for the stock to climb upwards is demonstrated by the RSI indicator, which is comfortably trading at 59 levels. The stock is also moving above all important moving averages. Once stock crosses the previous resistance of 2720 it can move towards the level of 2765 and above.

Based on the above technical analysis we recommend buying LT at CMP of 2695.35 for a medium-term outlook with a stop loss of 2640 for targets of 2765.

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.