Day Trading Stocks: 2 Buy/Sell Picks By Sumeet Bagadia On Wednesday, 4th September

Profit booking ensued as the Nifty had a gap-up at the beginning of the day but was unable to maintain higher levels. Nevertheless, the index was able to end the day flat at 25,280 levels on Tuesday in spite of this profit-taking. Despite experiencing profit booking in the first half of the day, the Bank Nifty started the day well. The index did, however, see significant buying activity in the second half and ended the day higher at 51,689 levels. Even after setting a new high over 25300 levels in the previous session, the market is anticipated to witness an upward trend with growing expectations of the US rate cut and investors are cautious as they await further economic indicators.

Nifty Prediction Today

Technically, on the daily chart, the index formed a small red candle but is still holding well above the breakout of a rounding bottom pattern, indicating strength. On the downside, the 9-Day Exponential Moving Average (DEMA) and the recent breakout point of the rounding bottom pattern are positioned near 25,070. Thus, any dip around 25,070 should be used to buy Nifty. On the upside, the index may test levels of 25,500-25,600 in the near future, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bank Nifty Prediction Today

Technically, on the daily chart, the index formed a green candle with a long lower shadow, indicating strength. On the downside, the 21-Day Exponential Moving Average (DEMA) is near 51,060 levels. As long as the index remains above 51,060, a 'buy on dips' strategy is recommended. On the upside, the Banknifty might attempt to test the levels of 52000, which corresponds to the double bottom pattern target, Hrishikesh Yedve predicted.

Stocks To Buy Today

Choice Broking's executive director, Sumeet Bagadia, advised purchasing two intraday stocks on September 4 as the market's outlook strengthened due to hope for US interest rate cut and FIIs becoming buyers.

HDFC Life

Buy HDFCLIFE in cash @ 758.75, stop-loss @ 730, target @ 799

HDFCLIFE daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable higher high and higher low pattern, and the company's recent upward swing has effectively violated the neckline, establishing a new week high. This breakthrough indicates the possibility of a significant follow-through upward increase in the stock price.

This trend signals strong momentum in the stock. There is potential for HDFCLIFE to attain a target price of Rs 799 in the near term.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The stock formed a strong bullish momentum pattern on weekly chart signalling a potential continuation of the uptrend. Furthermore, HDFCLIFE is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend.

For traders, keeping an eye on the strong support near 730 levels is advisable, as a breach of this level could signal a shift in sentiment.

Based on the above analysis we recommend buying HDFCLIFE and the CMP of 758.75 with a stop loss of 730 for the target of 799.

Jindal Saw

Buy JINDALSAW in cash @ 714.55, stop-loss @ 688, target @ 751

JINDALSAW is exhibiting strong bullish momentum, currently trading at an all-time high of 718.5 levels. The recent breakout above the crucial resistance at 688 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, JINDALSAW is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 69.25 levels.
For traders, keeping an eye on the strong support near 688 levels is advisable, as a breach of this level could signal a shift in sentiment.

Overall, JINDALSAW current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying JINDALSAW and the CMP of 714.55 with a stop loss of 688 for the target of 751.