Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy On Wednesday, 26th July

On Tuesday, benchmark indices came to a flat note amid a volatile session triggered by Fed policy decision ahead. At close, the Nifty was up 8.30 points or 0.04% at 19,680.60 while the Sensex was down 29.07 points or 0.04% at 66,355.71. Hindalco Industries, JSW Steel, Tata Steel, NTPC, and UltraTech Cement were among the top gainers on the Nifty, while Asian Paints, ITC, Britannia Industries, IndusInd Bank, and Larsen & Toubro were among the top losers. Sector-wise, the metal and power indices climbed by 2% apiece, while the PSU bank, capital, FMCG, and real estate indices dropped by 0.5-1% respectively.

Market Outlook Today

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services said "Nifty witnessed pressure for the third consecutive day and traded sideways throughout the Tuesday session to close with minuscule gains at 19681 levels. Sectorially it was a mixed bag with buying seen in Metals, Auto, and Consumer Durables. While PSU Bank and FMCG were top laggards. Metal stocks were in the limelight after China announced to provide policy support to aid economic recovery. Auto stocks were also in focus led by strong numbers posted by TVS, Bajaj Auto, and JLR. After making a fresh high of 19992 on 20th July - just a few points away from the psychological level of 20k, Nifty witnessed profit booking on account of mixed corporate results and weak global cues. We expect cautiousness in the market, ahead of the Federal Reserve's policy meeting on Wednesday where a 25 bps hike is expected."

Nifty Prediction

Jatin Gedia - Technical Research Analyst at Sharekhan by BNP Paribas said "On Tuesday the Nifty opened on a positive note, however, it was unable to sustain at the higher levels and witnessed selling pressure during the first half of the session. The Nifty took support at the 50% Fibonacci retracement level (19650) of the rise from 19300 - 19992 and witnessed a bounce back which helped the Nifty to close marginally in the green. The correction Nifty is undergoing is unlikely to result in a trend reversal and this intermediate pullback should be used as a buying opportunity. The primary trend is positive and hence we shall continue to maintain a bullish short-term outlook. In terms of levels, 19615 - 19560 shall act as a crucial support zone, and on the upside 19830 - 19850 shall act as an immediate hurdle zone."

Bank Nifty Prediction

Bank Nifty closed in the red on Tuesday for the third consecutive day. It witnessed selling pressure after opening on a positive note indicating that it was unable to sustain at higher levels. On the downside, 45670 - 45460 which are the 38.2% and 50% Fibonacci retracement levels are likely to act as a strong support zone from a short-term perspective. Overall, the trend is still positive and once this consolidation is complete, we can expect the Bank Nifty to resume its uptrend. On the upside 46500 is the expected target," said Jatin Gedia.

Stocks To Buy Today

Sumeet Bagadia, Executive Director of Choice Broking has recommended 2 stocks to buy today Wednesday, 26th July.

Hindalco

Buy HINDALCO in cash @ Rs 449.50, SL @ Rs 440, target price Rs 470

The stock is currently trading at 449.50 levels. The stock has strongly moved on the higher side and hence we can witness a breakout on charts. This breakout is supported with good volumes which indicates strength. Now any dip in the stock around 445 levels will be a buying opportunity. A small resistance can be witnessed near 454 levels and once stock crosses the mentioned level HINDALCO can now further move towards 470 levels and higher. The investors holding from lower levels should keep trailing stop loss.

According to the aforementioned technical analysis, we advise buying HINDALCO at a CMP of 449.5 for the target of 470 levels, if the stock closes below 440, our analysis will be invalid.

NTPC

In the daily chart, NTPC has been consistently following a Higher High-Higher Low formation. As the stock has recovered from the support zone and remains over 165, it may continue its primary trend. Price is also holding above the 20 and 40 EMAs. The RSI indicator, which is currently at 71, indicates bullishness in the stock.

One can initiate a long position at cmp 200.6 for the target price of 208. SL can be kept as 196.

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.