Stocks To Buy: Day Trading Guide By Sumeet Bagadia On Tuesday, 13th August

Owing to the ambiguity surrounding Hindenburg's accusations against SEBI Chairperson Madhabi Puri Buch and her husband, domestic benchmark indices began down on Monday. Indian markets were resilient in the face of uncertainty, ending the day at around 24,347 levels, flat to negative. A spike in market volatility is shown by the volatility index, INDIA VIX, which climbed by 3.47% and settled at 15.87. Although the Bank Nifty index had a negative opening gap, it eventually drew buying activity and ended the day at 50,578, up for the day. The Adani-Hindenburg-SEBI conflict is predicted to continue, causing volatility in the Indian stock market.

Market Outlook

Rajesh Bhosale, Equity Technical Analyst, Angel One, said "Nifty started the week on a cautious note due to the release of fresh allegations by the Hindenburg report over the weekend. During the first hour, prices tested levels around 24200 but didn't see sustained selling. Instead, prices rebounded, not only recovering lost ground but also surpassing last week's high. However, this momentum was short-lived as Nifty slipped lower in the last hour, closing slightly below the opening levels with a minor loss of 0.08%, ending just below the 24350 mark."

"Technically, not much has changed as prices continue to gyrate within a range. The market's ability to absorb negative news and maintain lower levels is a positive sign; however, it appears fragile whenever prices move to a higher range. It seems traders are waiting for some definitive action to trigger the next leg of momentum. On the downside, we are watching the advancing line on the hourly chart, currently around 24200; a sustained break below this level could indicate the resumption of the recent market sell-off. Conversely, Nifty is in an uncertain zone between 24500 and 24700, which represents a bearish gap. For now, the 20-day EMA around 24500 is a critical level, and a close above it could drive prices towards 24700. Traders should keep an eye on these levels and set up their trades based on the direction of the breakout. Monitoring recent news developments is also advisable as they may signal the direction of the breakout," he further added.

Stocks To Buy Today

Considering a negative gap exists between Nifty's 24500 and 24700 levels, Choice Broking's executive director Sumeet Bagadia recommended buying two technical stocks on Tuesday.

HDFC AMC

Buy HDFCAMC in Cash @ RS 4208.1, stop-loss @ 4050, target @ 4550

HDFCAMC is currently priced at 4208.1 in the cash market, presenting a promising buying opportunity. The stock appears to be on the verge of breaking out of an Ascending Triangle pattern on the daily chart. If the price manages to sustain above 4210, it is likely to move further upwards towards the target of 4550. On the downside, 4120 will serve as immediate support, creating a potential buying opportunity.

The Relative Strength Index (RSI) is at 58.18 levels and trending upward, indicating an increase in buying momentum. Additionally, HDFCAMC has rebounded from its short-term (20-day) Exponential Moving Average (EMA) and medium-term (50-day) EMA, signaling a bullish outlook.

Based on these technical indicators, we recommend taking a long position in HDFCAMC at 4208.1, with a stop loss at 4050 to manage risk, and a target price of 4550, aligning with the current favorable market sentiment.

CIPLA

Buy CIPLA in Cash @ 1586.25, stop-loss @ 1530, target @ 1700

CIPLA is currently trading at 1586.25, showing signs of a potential breakout from its consolidation range. Supported by notable trading volumes, the stock demonstrates strength in its bullish movement. A breakout above 1600 would confirm the uptrend and validate the expected target of 1700. It is advisable to accumulate shares on dips for an optimal entry point.

The RSI is at 64.55 levels and is trending upward, suggesting increasing buying pressure and a continued bullish trend. However, CIPLA has found support near its key moving averages, including the short-term (20-day) EMA and medium-term (50-day) EMA, indicating a strength in the bullish trend.

Based on this analysis, a recommendation would be to buy CIPLA in cash at 1586.25 with a stop loss (SL) at 1530 and a target (TGT) at 1700. This trade setup aligns with the bullish technical indicators observed in the stock.

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.