Stocks To Buy: Day Trading Guide By Sumeet Bagadia On Friday, 2nd August

Thursday saw a rise in domestic benchmark indices tracking positive global cues The Nifty had a strong start to the day and witnessed consistent buying activity, which helped it end the day at 25,011. The Bank Nifty index had a strong start to the day but saw profit booking at higher levels. It closed the day at 51,564, flat to up. As these firms disclose their Q1 results today, investors will be closely watching stocks like Titan Company, Hindustan Zinc, Britannia Industries, and GlaxoSmithKline Pharmaceuticals.

Market Outlook Today

Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One Ltd said, " Despite the benchmark heading for new highs, the market breadth remains restrained, with limited support from the bulls indicating a sign of timidity. The correction in the mid and small-cap indices stirred some caution and dampened the undertone. From a technical standpoint, Nifty refrained from showcasing an authoritative move and was crippled due to broad-based profit booking. As far as levels are concerned, 24800 remains the crucial support zone with anticipation of buying emergence, followed by the sacrosanct support of 24600-24500 zone.

On the higher end, 25080-25100 seems an intermediate obstacle, followed by the golden retracement placed at 25340 zone in the comparable period. Going forward, it is crucial to consider sectoral rotation and focus on outliers in order to outperform the market. For now, the Banking space remains muted with subdued movements, and this needs to gain traction to further strengthen the market sentiments. Hence, a brief watch is required over the developments in the Banking index."

Stocks To Buy Today

Executive director of Choice Broking Sumeet Bagadia recommended buying two stocks on Friday, August 2.

Gillette India

Buy GILLETTE in Cash @ 7970, stop-loss @ 7690, target @ 8530

GILLETTE is in a long-term uptrend, consistently forming higher highs and higher lows on the daily time frame. The stock has recently experienced a pullback from its higher levels but has reversed from strong support areas, indicating that the bullish trend is likely to continue. If the stock can hold above the 8000 level on a closing basis, it is poised to potentially move towards an upward target of 8530.

The (RSI) is at 64.08 levels and is trending upward, further supporting the bullish momentum. Moreover, GILLETTE is trading above its key moving averages, including the short-term (20 Day) and medium-term (50 Day) EMA levels, which confirms the strength of the current uptrend.

Based on this analysis, a recommendation would be to buy GILLETTE in cash at 7970 with a stop loss (SL) at 7690 and a target (TGT) at 8530. This trade setup aligns with the bullish technical indicators observed in the stock.

Godrej Industries

Buy GODREJIND in Cash @ 951.05, stop-loss @ 910, target @ 1030

The current trading price of GODREJIND is Rs 951.05. The stock has recently breakout of cup and handle pattern on daily chart with a significant increase in trading volume, indicating a potential breakout. If the price manages to close above the Rs 970 level, it may have the potential to reach short-term targets of Rs 1030. On the other hand, immediate support levels are located at Rs 929. These levels can be considered as opportunities to buy on dips.
The Relative Strength Index (RSI) currently stands at 74.49 and is trending upward, indicating increasing buying momentum.

To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 910. This precaution will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and the current market conditions, GODREJIND appears to present an appealing buying opportunity for those aiming for a Rs 1030 price target, provided that appropriate risk management measures are in place.

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.