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Business News/ Markets / Stock Markets/  Day trading guide for today: Six buy or sell stocks for Wednesday —August 2
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Day trading guide for today: Six buy or sell stocks for Wednesday —August 2

Day trading stocks: Market experts have recommended six stocks to buy today —HDFC Life Insurance, NTPC, Axis Bank, Reliance Industries, Escorts Kubota, and HCL Technologies.

Sensex closed 68 points, or 0.10 per cent, lower at 66,459.31 while Nifty closed the day with a loss of 20 points, or 0.10 per cent, at 19,733.55. (MINT_PRINT)Premium
Sensex closed 68 points, or 0.10 per cent, lower at 66,459.31 while Nifty closed the day with a loss of 20 points, or 0.10 per cent, at 19,733.55. (MINT_PRINT)

Day trading guide for today: Domestic equity benchmarks Sensex and Nifty ended lower during Tuesday’s session on profit-booking select heavyweights, including Reliance Industries, Power Grid, State Bank of India, and ICICI Bank amid mixed global cues. Sensex remained volatile throughout the session and closed 68 points, or 0.10 per cent, lower at 66,459.31 while Nifty closed the day with a loss of 20 points, or 0.10 per cent, at 19,733.55. 

The BSE Midcpap index underperformed the benchmark Sensex, falling 0.23 per cent. The index hit its record high of 30,497 in intraday trade but failed to sustain the gains. The BSE Smallcap index, on the other hand, ended with a gain of 0.50 per cent at 35,177.85 after hitting its record high of 35,257.68 during the session.

Most indices suffered losses, however, Nifty IT index ended with a healthy gain of 1.20 per cent with all components in the green. Nifty Metal (up 0.18 per cent), Pharma (up 0.06 per cent) and Private Bank (up 0.02 per cent) also inched up. On the other hand, Nifty Realty fell 1.77 per cent, ending as the top loser among sectoral indices. Nifty Healthcare and Oil & Gas indices fell 0.42 per cent and 0.38 per cent respectively. Nifty Bank also fell 0.13 per cent.
 

Day trading guide for stock market today

On the outlook for Nifty today, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services observes that Nifty soon gave up its initial gains to close flat at 19,734 levels. 

‘’Action was seen in Nifty small cap 100 – up +0.7 per cent. Metal stocks saw a smart move on the back of expectations of more stimulus from China and metal prices touching a 3-month high on LME. Overall, we expect the market to consolidate in a range with a positive bias as we move further into the earning season'' said Khemka.

Rupak De, Senior Technical Analyst at LKP Securities adds, ‘’A hidden positive divergence on the daily chart indicates a potential bullish reversal in price momentum. Short-term prospects suggest a sideways to positive trend if the index stays above 18,550. A decisive move above 19,800 could drive the index towards the 20,000 mark.''

On the outlook for Bank Nifty, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities observes that the index is currently engaged in a persistent battle between the bulls and bears, resulting in a consolidation phase.

‘’A notable resistance level can be observed at 45,800, and a decisive break above this resistance would potentially pave the way for further upside movements in the index. Conversely, a significant support level is visible at 45,300. If the index breaks below this support level, it could signify the bears gaining full control, leading to potential downside movements towards 45,000-44,700 levels,'' said Shah.

 

Global factors to play a defining role in market movement

Bank of England (BoE) interest rate decision along with a slew of economic data points including US non-farm payroll data during the week would provide direction to the markets. 

The economic activity in the US manufacturing sector improved in July but remained below analysts' expectations as the ISM manufacturing prchansing manager's index (PMI) advanced to 46.4 from 46 in July. Also, the US July S&P Global Manufacturing PMI final at 49 in July versus 46.3 in June.

Last week, the US Federal Reserve raised their target for the federal funds rate by 25 basis points, to a range of 5.25 per cent to 5.50 per cent, a 22-year high. The decision to raise rates was unanimous and represented the 11th hike since the Fed began raising rates from zero in March of 2022.

The European Central Bank (ECB) also raised its key interest rate target by 25 basis points, to 3.75 per cent, and suggested a pause may be necessary given economic weakness on the region. This was the ninth consecutive increase, also to a 23-year high, from below zero last year.

‘’Should the Fed persist in a ‘higher for longer’ approach, however, US equities may struggle considering valuation and the lagged effects of tighter policy on a thus far resilient economic engine. European bourses have held up well despite war in Ukraine and ECB tightening, any perceived relaxation may support shares,'' said John Lynch, Chief Investment Officer for Comerica Wealth Management, based in Charlotte, North Carolina.

Oil prices snapped its July rally on August 1 on a stronger dollar and signs of profit-taking as investors went cautious on tightening global supplies and demand growth in the second half of the year. Brent crude futures for October were at $84.80 a barrel, down 63 cents or 0.7 per cent. Front-month Brent settled at its highest since April 13 on Monday.

Crude oil rallied to a fresh three-month high on July 31 and recorded their steepest monthly gains since January 2022, supported by signs of tightening global supply and rising demand through the rest of this year.

 

Stocks to watch today

Shares of Titan, IndiGo, Ambuja Cements, among others will be in focus today as the companies will be reporting their April-June quarter results for fiscal 2023-24 (Q1FY24). Shares of Hero MotoCorp will be in focus as the company witnessed its worst stock fall in over a year on Tuesday after the Enforcement Directorate raided Chairman Pawan Munjal's residence in an alleged money-laundering case.

Shares of Metro Brands, Adani Total Gas, PVR INOX, Thyrocare Technologies, MakeMyTrip will also be in focus today as these firms had released their Q1FY24 results on Tuesday. 

 

F&O ban list

Piramal Enterprises, Hindustan Copper, and Indiabulls Housing Finance are the three stocks that are a part of the F&O ban list by the stock exchange for Wednesday.

The securities have been put on ban under the F&O segment as they have crossed 95 per cent of the market-wide position limit (MWPL), according to the NSE. However, the stocks will be available for trading in the cash market.

 

Day trading stocks for today

On intraday stocks for today, stock market experts — Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi, Anuj Gupta, Vice President - Research at IIFL Securities, and Sumeet Bagadia, Executive Director at Choice Broking— recommended six stocks to buy today.

 

Anuj Gupta's buy or sell stocks:

1.NTPC: Buy NTPC at a stop loss of 214 and at target price of 240.

NTPC shows a strong trend, bullish chart structure, higher top bottom formation.

2. Axis Bank: Buy Axis Bank at a stop loss of 934 and at a target price of 1,010.

Axis Bank shows fresh breakout, substantial volumes, bullish chart structure with fresh breakout on the charts.

 

Ganesh Dongre's intraday stocks for today:

3. HDFC Life Insurance Company: Buy HDFC Life at 642 with a stop loss of 630 at a target price of 660

‘’In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 660. So, holding the support level of 630 this stock can bounce toward the 660 level in the short term, so the trader can go long with a stop loss of 630 for the target price of 660,'' said Dongre.

4. Reliance Industries: Buy Reliance Industries at 2,518 with a stop loss of 2,490 at a target price of 2,570.

‘’On the short-term chart, the stock has shown a bullish reversal pattern, so holding the support level of 2,490 this stock can bounce toward the 2,570 level in the short term, so the trader can go long with a stop loss of 2,490 for the target price of 2,570,'' said Dongre.

 

Sumeet Bagadia's intra day stocks for today:

5. Escorts Kubota: Buy Escorts Kubota at 2,563 with a stop loss of 2,510 at a target price of 2,635.

Escorts Kubota have bounced back from the strong support of 2,315, which is also close to 20 Day EMA and has given a breakout above a crucial resistance of 2,450 levels. 

Escorts can climb upwards towards higher levels near to 2635 levels as the current breakout is backed by the strong volumes. The fact that the RSI indicator is trading near 81 levels suggests that the present rebound can continue and that the stock may continue to rise.

With a short-term goal price of 2,635 we advise purchasing ESCORTS at the current market price of 2,563. If the price closes below 2,510, our analysis will be regarded as being invalid.

6. HCL Technologies: Buy HCL Technologies at 1,138.5 with a stop loss of 1,110 at a target price of 1,175.

HCL Tech, a renowned technology firm, has shown a persistent increase, and currently trading at market price (CMP) of 1,138.50. The stock is trading above its 20-, 50-, and 200-day moving averages, indicating a positive outlook. 

Once broken, a small resistance at 1,155 levels could function as a stimulus for additional upward movement. The Relative Strength Index (RSI) is currently at 51 and rising, indicating more purchasing activity. This makes HCL Tech an appealing investment.

However, investors should exercise care and keep a watch on the stock if it falls below 1110, as this might negate the favourable outlook. A short-term goal of 1,175 is feasible.

 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

 

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 02 Aug 2023, 06:45 AM IST
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