Vinay Rajani of HDFC Sec suggests Gail, Adani Ports shares to buy in near-term
Indian benchmark indices, Sensex and Nifty 50, are poised to open slightly higher, driven by positive US market trends. The domestic market is experiencing a bullish trend, supported by strong foreign investments and improved investor sentiment.
Stock market today: Indian benchmark indices Sensex and Nifty 50 are expected to open marginally higher on Tuesday, 7 July, taking cues from overnight gains on Wall Street, even as mixed trends across Asian markets may limit upside.
Asian equities were trading mixed in early trade, while US stocks ended higher overnight, supported by strong gains in technology shares.
Back home, the domestic market ended in the green for the fourth straight session on Monday, aided by improving investor sentiment, a revival in monsoon activity and continued buying by foreign institutional investors (FIIs).
The BSE Sensex rose 521.16 points (0.67%) to settle at 78,285.07, while the Nifty 50 gained 159.50 points (0.66%) to close at 24,430.35.
Market Views - Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities
Nifty 50 Outlook
Nifty 50 has decisively broken above the key resistance zone of 24,200, and today’s move above the 200 DEMA near 24,220 further strengthens the bullish setup. With the index now trading above its 20, 50, 100, and 200 DEMAs, the trend appears positive across time frames. Support at 24,200 can now be viewed as a fresh buy-on-dips zone, while 24,000 remains the positional stop-loss for long trades. On the upside, Nifty 50 may head toward 24,631, which aligns with the 61.8% Fibonacci extension, followed by 24,865 near the 200-day SMA. Weekly and monthly indicators also continue to reflect underlying strength.
2 stocks to buy in the near-term
Buy Gail 175 | Stop-loss Rs. 165 | Targets Rs. 185, 193
Gail share price has broken out of an inverted head-and-shoulders pattern on the weekly chart. The price rise is accompanied by a rise in volume. Stock is placed above all key moving averages. Weekly RSI has been sustaining above 50. The weekly MACD is above the equilibrium and signal lines.
Buy Adani Ports 1,875| Stop-loss Rs. 1,790 | Target Rs. 1,975
Adani Ports share price primary trend is bullish, as it has been holding above all key moving averages. The stock price has recently broken out from the consolidation, that held for the last two months. The price rise is accompanied by a rise in volume. Stock is above all key moving averages.
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