Day trading guide for today: 6 stocks to buy or sell for Wednesday — July 5

On Tuesday, Sensex ended at 65,479.05, up by 274 points or 0.42%. While Nifty 50 settled at 19,389, higher by 66.45 points or 0.34%. However, the upside was limited due to the mixed trend seen in sectoral indices. Auto and oil & gas stocks were top losers, while IT stocks outperformed ahead of Q1 results starting with TCS next week. Also, banking and consumer durable stocks gained substantially. Midcap stocks were also under pressure.

Earlier on July 4, Sensex and Nifty 50 hit a new lifetime high of 65,672.97 and 19,434.15 respectively.

Moreover, FIIs extended their winning streak for five days in a row with an inflow of ₹2,134.33 crore on Tuesday, however, DIIs selling widened to ₹785.48 crore.

On the global front, stocks were steady as traders’ sentiment weighed between the inflationary pressure that could arise from soaring oil prices along with hopes that central banks may not over-tighten monetary policy in a possible recession scenario. The US market was closed on July 4.

Day trade guide for Wednesday:

Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi believes Nifty 50 will find support around 19050/19100 and resistance will be around 19450/19500. Meanwhile, Bank Nifty is expected to find support between 44000/44200 and resistance in the range of 46100/46200.

Meanwhile, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, “One should maintain a buy on dips approach on nifty and avoid any short position until breaks 19200. The immediate support for the nifty index stands at 19300 where maximum open interest in put options data is seen and on the upper end nifty can face resistance at 19500 where maximum open interest in calls is seen, if nifty breaks 19500 levels we can see some further upside move towards 19700.”

Further, for the Wednesday trade, Ajit Mishra, SVP – Technical Research, Religare Broking said, “The rotational buying across sectors is helping the index to maintain a positive tone despite the overbought condition. And, we feel the scenario would continue, citing the prevailing structure and favorable global cues. Having said that, traders should not get carried away with prevailing buoyancy and stick only with the quality stocks and avoid penny stocks or laggards, in anticipation of a recovery.”

Also, Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said believes that the support for Nifty shifts to 19,300 on the back of strong put writing. Nifty faced resistance around the 19,400 zones on Tuesday and the option activity at the 19,400 Strike will provide cues about Nifty’s Intra-day direction on Wednesday. On the upside, 19,500 will act as an immediate resistance.

Ramani also added, Though Bank Nifty gained 1,179 points and rose from 44,122 to 45,301 from 27th June to 4th July, in just four trading sessions, the PCR of Bank Nifty during the same period fell from 1.52 to 1.11. This indicates that the put writers are not comfortable to build positions at higher levels. Thereby, he said, “Bank Nifty has formed a Doji candle on the daily chart which signals indecision. Hence, the intra-day high of 45,656 and the intra-day low of 45,000 will act as a resistance and support for the index respectively.”

Intraday stocks to buy on July 5 trade:

Sumeet Bagadia, Executive Director at Choice Broking:

1. Colgate Palmolive:

COLPAL has bounced back from the support level of 1660 and crossed the initial resistance of 1700 levels. Currently, the stock is trading around 1705.40 levels which indicates a breakout above the important resistance levels. The breakout above the mentioned levels is backed by strong volumes and hence has the potential to move higher.

The stock is trading above all important EMA levels indicating strength. Based on the above analysis we expect COLPAL to move higher towards 1790 and hence we recommend buying COLPAL at a CMP of 1705.40 with an SL of 1790.

2. Wipro:

The stock is moving in a broad channel and is gradually rising after finding support near the 380 level. MACD shows a positive crossover, while the RSI remains above 58. Volume has been steadily rising in the last couple of days, confirming the price action.

Price is holding above the 20-day moving average, indicating a bullish trend. One can initiate a long position at cmp 395.9 for the target price of 405. SL can be kept as 390.

Anuj Gupta, Vice President – Research at IIFL Securities

1. Buy UCO Bank with a stop loss of ₹26 for a target price of ₹31. The stock has witnessed a fresh breakout, substantial volumes, trend a positive, bullish engulfing candlestick pattern.

2. Buy Tata Steel with a stop loss of ₹109 for a target price of ₹119. The stock has seen a strong trend after consolidation, chart structure being positive and bullish.

Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi:

1. Cipla:

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 1030. so, holding the support level of 995 this stock can bounce toward the 1030 level in the short term, so the trader can go long with a stop loss of 995 for the target price of 1030.

2. Piramal Pharma:

On the short-term chart, the stock has shown a bullish reversal pattern, so holding the support level of 89 this stock can bounce toward the 95 level in the short term, so the trader can go long with a stop loss of 89 for the target price of 95.

Updated: 05 Jul 2023, 06:28 AM IST