Trade Setup: Ruchit Jain of 5paisa.com Recommends 3 Stocks To Buy Today

In Thursday's closing sessions, Indian benchmark indices reached new all-time highs amid high volatility. The Sensex climbed by 1.03% intraday to reach a new high of 66,064.21 points, and the Nifty 50 gained by 0.94% to reach a record high of 19,567 points. The S&P BSE Sensex ended 165 points, or 0.25%, higher at 65,559.89, while the NSE Nifty 50 closed 30 points, or 0.15%, higher at 19,413.75. On Thursday, foreign investors in Indian stocks switched to net buyers after being a net seller on Wednesday. Foreign portfolio investors (FPI) picked up stocks worth Rs 2,237.9 crore, while domestic institutional investors (DIIs) sold stocks worth Rs 1,196.7 crore, turning into net sellers of domestic stock.

Market Outlook Today

Commenting on the performance of Nifty on Wednesday, Ruchit Jain, lead research analyst at 5paisa.com said, "Nifty started the weekly expiry day on a positive note and surpassed the recent swing high of 19500. The momentum picked us up as the index rallied above 19550, but it was short-lived as we witnessed a sell-off in the later part of the day and Nifty ended just above 19400."
"The morning session on the weekly expiry day was full of hopes as the index surpassed the 19500 mark and it seemed that it resumed the momentum as support was seen from the heavyweights of the IT sector.

However, when everything looks hunky dory, markets often tend to surprise the participants and the index breached the morning lows in the later part of the day. Such a move is usually termed as a 'false breakout' as absence of follow up buying leads to stuck positions of traders who went long on intraday breakout. Hence, this indicates that the index continues to be in a time-wise corrective phase and thus the follow up move will be important to see as we proceed towards the end of the week. For Nifty, 19300 continues to be an important support and if the same is breached, then we would expect some price wise correction towards 19150. On the flipside, 19500-19570 would be seen as the immediate resistance range which needs to be broken out for a resumption of the upmove. Traders are advised to take a stock specific approach at the moment and lighten up trading longs if the Nifty breaks 19300 support," stated Ruchit Jain.

"The Bank Nifty index is trading around its 20 DEMA support which is placed around 44500 which will be important to watch. The RSI oscillator on the daily chart is already in sell mode and hence, one should keenly watch if the index reverses from this support or not. The momentum readings on Nifty Midcap index too are in the overbought zone, thus we could see some pullback move in the midcap stocks in the near term," he further added.

Stocks To Buy Today

Ruchit Jain, lead research analyst at 5paisa.com has recommended 3 stocks to buy on Friday, 14th July.

Biocon

The stock has been forming a 'Higher Top Higher Bottom' structure. The price-up moves have been supported by good volumes and thus, we advise traders to use declines as buying opportunities. Traders can buy in a range of Rs. 254-250 with a stop loss below Rs. 240 for short-term targets of Rs. 285.

Escorts

The stock has given a breakout above its swing-high resistance. The RSI oscillator is hinting at a positive momentum and hence, we expect the up move to continue in the short term. Traders can buy the stock in the range of Rs. 2285-2275 with a stop loss below Rs.2190 for short-term targets of Rs. 2380 and Rs. 2450.

General Insurance Corporation of India

The stock has witnessed good buying momentum recently as price-up moves witnessed a decent rise in volumes. The stock has seen some time-wise correction in the last couple of weeks and the momentum readings have cooled off from the overbought zone. Thus, we expect the stock to resume a stock-term uptrend soon. Traders can buy in the range of Rs. 190-197 with a stop loss below Rs.182 for short-term targets of Rs. 198 and Rs. 204.

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.