Trade Guide On August 7: Nifty May Find Support At This Level; Stocks, Futures To Buy Today

Nifty and Sensex have corrected significantly by 228 points and 963 points in the last two week's trading sessions. Both benchmarks are currently near their one-month low levels. The market on Monday is likely to be fueled by RBI's policy outcomes scheduled for later this week amidst corporate results. Global cues have been cautious after a slowdown in the US job report. Today, Nifty is likely to find support between 19300 to 19400 levels, while Bank Nifty's support may be placed around 44200.

Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher has recommended buying three stocks on Monday.

On Friday, last week, the blue-chip Nifty 50 surged by 135.35 points or 0.7% to end at 19,517. While the S&P BSE Sensex soared by 480.57 points or 0.74% to close at 65,721.25. Bank Nifty outperformed key benchmarks by ending at 44,879.50, up by 366.05 points or 0.82%. BSE Midcap and Smallcap index jumped by 195.02 points and 229.17 points to finish at 30,162.66 and 35,070.65 respectively.

However, Sensex and Nifty 50 ended the trading week between July 31st to August 4th in red. Sensex dipped by 484.04 points or 0.73% in the week, while Nifty 50 tumbled by 115.30 points or 0.59% -- marking it the second consecutive weekly drop.

August 7th Trade Guide

According to Vaishali Parekh, the Nifty index witnessed a decent recovery from the important 19300 zone and has formed almost like a "Morning Star" like pattern on the daily chart anticipating for further pullback till 19,600 to 19,650 levels. The bias has improved to some extent and a decisive breach above 19,650 zone shall further strengthen the trend to retest the psychological 20,000 landmark once again.

Meanwhile, on Bank Nifty, Parekh said that the index witnessed a decent pullback to close above the 44,700 zone which is where the significant 50 DEMA level lies to improve the bias. The index has got the important near-term support at around 44,300 zone and on the upside if the pullback recovery sustains above the 45,500 levels, then the overall bias shall turn positive anticipating for a further rise to retest the peak zone 46,370 levels.

Accordingly, Parekh expects Nifty today to have immediate support placed at 19,400 levels with resistance around 19,650 levels. Bank Nifty is seen to range from 44,600 to 45,300 levels.

Also, Sanjiv Bhasin, Director at IIFL Securities in his technical view for the August 7th trade said, "Nifty finds support around 19300 while 19700 will act as resistance. Bank Nifty finds support around 44200 while 45400 will act as resistance on the upside.

Intraday Picks

Parekh recommends three stocks to buy on Monday:

- IndusInd Bank: Buy at ₹1409 for a target price of ₹1450 with a stop loss of ₹1385.

- Chalet Hotels: Buy at ₹486.50 for a target price of ₹505 with a stop loss ₹480.

- BEL: Buy at ₹127.50 for a target price of ₹133 with a stop loss of ₹125.

Bhasin has given trading calls in futures and derivatives:

- (1-14 days) BUY ICICI G August future @ 1360-1370, stop loss 1337.75 & target 1395

- (1 months) BUY SBI LIFE August future @ 1270-1280, stop loss 1249.55 & target 1305.

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.