Day trading guide for today: Six buy or sell stocks on Wednesday – July 19

The optimism in the domestic benchmark indices was also aided by robust buying in information technology (IT) service major, Infosys. Further, Reliance Industries, HCL Technologies, and Asian Paints,  continued to contribute to the gains in the Sensex and Nifty index.

Sensex had some volatility during the session as profit booking occurred occasionally at higher levels. In the medium to long term, experts are optimistic about the market, although they anticipate some consolidation in the near future due to the market’s high valuation.

The Nifty ended the day at 19,749.25, up 38 points or 0.19 percent, while the Sensex ended the day 205 points, or 0.31 percent, higher at 66,795.14.

Investors will closely monitor US retail sales and industrial production figures since they may have an impact on the Federal Reserve’s stance on monetary policy. Next week, policy meetings for the US Federal Reserve, European Central Bank, and Bank of Japan will take place.

“The bulls continued to lift the market to new heights, but volatility emerged in the second half due to concerns over valuation. Rapid fall in the dollar index and a slide in the US 10-year yield is supporting liquidity in emerging markets. While disappointing economic growth in China and improvement in the US market outlook are drawing attention to the Indian market with the IT sector as the contra bet,” said Vinod Nair, Head of Research at Geojit Financial Services.

FIIs buy ₹790.40 crore worth equities on 18 July; DIIs dump ₹1,317 crore

What to watch for today?

Stock Specific movement to watchout for:

IndusInd Bank: The bank reported a standalone net profit of ₹2,123.6 crore in the first quarter of FY24, registering a growth of 32.5% from ₹1,603.29 crore in the same quarter last year. Net interest income (NII), which is the difference between interest earned and interest expended, during Q1FY24 increased 18% to ₹5,862.5 crore from ₹4,125.3 crore, YoY.

Adani Transmission: The company’s distribution loss decreased steadily and was 4.85% in the first quarter of FY24 compared to 6.95% in the same quarter of FY23. The company sold 2,754 million units in the first quarter of FY24, up 7.61% from 2,560 million units in the same time of the prior fiscal year due to an increase in energy consumption, the firm stated in an exchange filing.

Network18: For the first quarter that concluded on June 30, 2023, the firm recorded consolidated total revenue of ₹3,238.9 crore, an increase of 142% over the prior fiscal’s corresponding quarter of ₹1,339.9 crore. For the first quarter, the company reported a net loss of ₹38.7 crore. Network18 had a net loss of ₹33.2 crore during the same quarter last year, the company stated in a regulatory filing.

ICICI Lombard General Insurance Company: For the first quarter that ended June 30, 2023, the company recorded a 12% year-over-year (YoY) increase in net profit at ₹390.4 crore. According to a regulatory filing, the company reported a net profit of ₹349 crore in corresponding quarter last year.

Q1FY24 earnings to lookout for: The list of some of the prominent companies who will release their Q1 results are as follows – Can Fin Homes Ltd, Century Textiles & Industries Ltd, Finolex Industries Ltd, Goodluck India Ltd, Hatsun Agro Product Ltd, Jubilant Pharmova Ltd, L&T Finance Holdings Ltd, Bank of Maharashtra Ltd, Newgen Software Technologies Ltd, Tata Coffee Ltd, Tata Communications Ltd, TRF Ltd.

Trade Ideas for today

Sumeet Bagadia, Executive Director at Choice Broking recommends buying Tata Consumer Products Ltd in cash at ₹858.70 with a stop loss of ₹840 for a target price of ₹890.

According to Bagadia, Tata Consumer Products is currently trading near 858.70. The stock has formed a hammer pattern on daily chart along with a Bullish Engulfing pattern 2 day’s prior, which indicates the reversal of bearish trend in stock.

The strength is shown by the RSI indicator’s current trading range of 60 levels. The stock is currently trading above all of the key moving averages. The Bollinger band continues to expand on the daily chart, with the price trading above the band’s centre line, indicating the stock’s strength. A small resistance is placed near 867 levels; if the stock surpasses this level, it may move towards 890 levels and higher which are also all-time high levels.

With a medium-term target price of ₹890, he advise purchasing Tata Consumer Products at the current market price of ₹585.70. If the price closes below 840, his analysis will be regarded as being invalid.

Further, Sumeet also suggests buying Berger Paints India Ltd. According to Bagadia, the stock is trading in a broad based channel with Higher High- Higher Low formation in the daily chart.  Positive crossover in MACD is observed while RSI is sustaining above 55 levels. In the last couple of days delivery volume has increased significantly.  Price is sustaining above 20 EMA confirming a bullish trend. One can initiate a long position at current market price of ₹679.05 for the target price of ₹700. Stop loss can be kept as ₹667.

On the Radar: Here are key stocks to buy in the trading session of Wednesday 

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

– Buy Indigo at ₹2,653 with a stop loss of ₹2,630 for a target price of ₹2,700.

According to the analyst, in the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till ₹2,700. So, holding the support level of ₹2,630 this stock can bounce toward the ₹2,700 level in the short term, so the trader can go long with a stop loss of ₹2,630 for the target price of ₹2,700.

– Buy Bharat Electronics Ltd at ₹127 with a stop loss of ₹123 for a target price of ₹132.

On the short-term chart, the stock has showing a bullish reversal pattern, so holding the support level of ₹123 this stock can bounce toward the ₹132 level in the short term, so the trader can go long with a stop loss of ₹123 for the target price of ₹132, according to the analyst.

– Nifty Spot index to see support at 19400/19500, while resistance seen at 19900/20000

– Bank Nifty spot index to see support at 44000/44200 and resistance – 46100/46200

Anuj Gupta, Vice President – Research at IIFL Securities:

– Buy Oil & Natural Gas Corporation (ONGC) with a stop loss of ₹159 for a target price of ₹190

According to the analyst, the trend is bullish, higher top higher bottom formation, bullish engulfing candlestick pattern.

– Buy Federal Bank with a stop loss of ₹123 for a target price of ₹150

According to the analyst, fresh breakout on the charts coupled with the substantial volumes, breakout after consolidation, and the trend is positive.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

Updated: 19 Jul 2023, 06:31 AM IST