Market Recap
On Monday, the Indian stock market recovered from a three-day losing streak:
Nifty 50: Up 84 points, closing at 24,936.
BSE Sensex: Up 375 points, closing at 81,559.
Bank Nifty: Up 540 points, closing at 51,117.
Despite this rebound, the cash market volumes on the NSE dropped 17.5%, reaching their lowest since May 29. The advance-decline ratio ended at 0.60:1, indicating that more stocks declined than advanced.
Trade Setup for Tuesday
Nifty 50 Outlook: Nagaraj Shetti of HDFC Securities suggests that Nifty might experience a near-term downward correction after breaking below the 25,000 support level. The next support is around 24,500, with immediate resistance at 25,050.
Bank Nifty Outlook: Hrishikesh Yedve of Asit C Mehta notes that the Bank Nifty showed strength with a “piercing line” candle formation. If it holds above the 50,370 level, a short-term pullback towards 51,500-51,800 could be possible.
Global Markets
Asian stocks saw a marginal recovery after early losses, driven by Wall Street’s overnight rally. However, concerns over the struggling Chinese economy limited gains:
MSCI Asia-Pacific Index: Up 0.2%.
Japan’s Nikkei: Up 0.4%.
Recommended Stocks to Buy Today
Sumeet Bagadia’s Picks:
Doms Industries (DOMS)
Buy at: ₹2732.05
Target: ₹2888
Stop Loss: ₹2626
Rationale: The stock is trading at an all-time high and has recently broken above key resistance levels with strong volume. This suggests a continuation of the upward trend.
Glenmark Life Sciences (GLS)
Buy at: ₹1204.95
Target: ₹1270
Stop Loss: ₹1160
Rationale: The stock has established a new weekly high and has shown a pattern of higher highs and lows, indicating a potential for further upward movement.
Ganesh Dongre’s Picks:
NCC Limited (NCC)
Buy at: ₹310
Target: ₹325
Stop Loss: ₹300
Rationale: A bullish reversal pattern is evident, suggesting a short-term price increase to around ₹325. The stock is currently at a key support level.
Reliance Industries (RIL)
Buy at: ₹2930
Target: ₹3040
Stop Loss: ₹2870
Rationale: Support at ₹2870 and a rising RSI indicate potential for upward movement. Buying on dips is recommended.
Tata Power (TATAPOWER)
Buy at: ₹420
Target: ₹445
Stop Loss: ₹410
Rationale: The stock is forming a bullish rounding bottom pattern, suggesting further upward movement to ₹445.
Important Note: While these recommendations are based on current technical analyses and market conditions, investing always carries risks. It’s advisable to conduct further research or consult with a financial advisor before making investment decisions.
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