Stocks To Buy For Short Term: Technical Picks By VLA Ambala On 2nd August

During Thursday's market session, the Nifty index opened at an all-time high of 25,030 and touched the day's peak of 25,078, forming a Doji candlestick pattern on the daily timeframe. Currently, the index is trading in an overbought condition, as evidenced by the RSI readings above 75 on daily, weekly, and monthly timeframes. However, this overvaluation, combined with price deviations from the 20-day and 50-day EMA, suggests potential volatility, according to V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

"I advise a neutral view for those looking to trade in the current market scenario. While the underlying trend is still bullish, analysis suggests a potential pullback. In such conditions, using Long Straddle strategies can help manage market fluctuations. In the next 10-12 days, sectors like Energy, Media, IT, and Metals will be in focus, so I suggest market participants keep an eye on them for any upside movement. Any dip in these sectors should be considered as a buying opportunity," VLA Ambala stated.

Market View for 2 August 2024, Friday

"For the Nifty index, the key support levels for today's trading session will be between 24,940 and 24,860, whereas resistance will likely be between 25,085 and 25,130," VLA Ambala predicted.

Aamar Deo Singh, Sr. Vice President of Research, Angel One said, "Markets hit record high with the benchmark Nifty closing above the 25000 mark, for the first time ever on the back of positive cues from the US Fed regarding increased likelihood of rate cut in September, and overall sustained domestic inflows in the markets. Investors need to be selective in their investment approach at such elevated levels, and should look at investing in quality names, in a staggered manner, with a long-term investment perspective."

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd said, "Technically, the Bank Nifty index is still consolidating in the band of around 51,000-52,300. Moreover, the Bank Nifty is facing rejection from a falling trend line at 52,300 levels. Thus, 52,000-52,300 will serve as a resistance zone for the Bank Nifty, while 51,000 will act as strong support."

Stocks to Checkout on 2 August 2024, Friday

For short-term investors, VLA Ambala has recommended the below stocks to buy or sell on Friday, 2nd August.

YESBANK

• Buy: Rs. 25.50-26.50
• Target: Rs. 27.50-30
• Stop Loss: Rs. 25.40
• Holding Period: 1-5 Days

LANCER

• Buy: Rs. 50-55
• Target: Rs. 70-120
• Averaging: Rs. 44/45
• Stop Loss: Rs. 40
• Holding Period: 4-10 Months

Note: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behaviour, and technical analysis.

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.