 "Vinay Rajani of HDFC Securities suggests buying these stocks on July 31")
Market View and Stock Picks
For last two trading sessions, Nifty has been failing to surpass the psychological resistance of 25000. On July 30, 2024, Nifty ended the session with a small “Doji” candlestick pattern and closed with a gain of 21 points at 24857. “Doji” candle indicates indecision in a trend. On the lower side, 24600 is expected to act as a strong support in the Nifty. Breadth of the market remained strong as, Nifty Midcap, Smallcap and Microcap indices closed at a new all time highs.
Buy JB Chemical & Pharma (Rs 1,940.5): | Target: Rs 2,025, 2,100 | Stop-loss Rs 1,880
Stock price has surpassed the crucial triple top resistance placed in the range of Rs 1,920-1,930. Stock has broken out from broken out from the consolidation, which held for last four months. Stock price has been trading above all important moving averages, indicating bullish trend on all time frames. Stock price has been forming higher tops and higher bottoms on the weekly and monthly charts.
Buy Adani Energy Solutions (Rs 1,135): | Targets Rs 1,220, 1,270 | Stop-loss Rs 1,085
Stock price has surpassed the crucial resistance of 50 and 200 DEMA on closing basis. Price rise is accompanied by jump in volumes. Indicators and oscillators have been showing strength on the weekly and monthly charts. Stock is on the verge of breaking out from the stiff consolidation, which held for last 7 months.
(Vinay Rajani, CMT is a senior technical and derivative analyst at HDFC securities. Views expressed are his own.)