In the previous session, the Sensex climbed 418 points, or 0.52 percent, to end at 81,018.72, while the Nifty had a relief bounce in the first session of the week, climbing 157 points, or 0.64%, to close at 24722. With 2,047 shares rising, 1,607 falling, and 154 holding unchanged, the market breadth was positive.
The India VIX, meanwhile, stayed almost unchanged at 11.96, suggesting that the market is still cautious yet uncertain. Key global macrodata, such as the US Services and Manufacturing PMI, as well as the Q1 results of industry titans like SBI, Bharti Airtel, Adani Ports, Prestige Estates, Bharti Hexacom, and Lupin, will be watched closely prior to the RBI’s policy announcement.
Nifty Outlook Today
“On the downside, immediate support is seen at 24,650, followed by 24,600-both levels may serve as opportunities for initiating fresh long positions. All major sectoral indices ended in the green, with notable gains in PSU Banks, pharma, realty, IT, metals, telecom, media, consumer durables, and auto-rising between 0.5 to 2.5 percent-indicating broad-based market participation,” said Hardik Matalia, Derivative Analyst – Research at Choice Equity Broking Private Limited.
Bank Nifty Outlook Today
“Key support levels are placed at 55,500, followed by 55,400 and 55,000. Holding above these levels could allow for further upside, while resistance is expected in the 56,250-56,600 zone. A decisive breakout above this range may trigger a rally toward the psychological 57,000 mark,” Hardik Matalia stated.
Stocks To Buy Today
Executive director Sumeet Bagadia of Choice Broking recommended purchasing two stocks on Tuesday, August 5, in advance of the RBI MPC decision, which is scheduled for August 6.
eClerx Services
Buy ECLERX in cash @ Rs 4087.3, Stop-loss @ Rs 3858, Target @ Rs 4300
ECLERX is exhibiting strong bullish momentum, currently trading at an all-time high of 4200 levels. ECLERX surged nearly 7.5%, indicating firm buying interest throughout the session. ECLERX has convincingly broken past a multi-month consolidation zone, decisively crossing its resistance zone around ₹3900. The price action indicates strength, with candles exhibiting a strong bullish body and minimal upper wick-suggesting buyers remained in control throughout the day.
Additionally, ECLERX is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 77.66 levels.
For traders, keeping an eye on the strong support near 3950 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, ECLERX current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.
Based on the above analysis we recommend buying ECLERX and the CMP of 4087.3 with a stop loss of 3858 for the target of 4300.
Lumax Auto Technologies
Buy LUMAXTECH in Cash @ Rs 1148, Stop-loss @ Rs 1111, Target @ Rs 1230
LUMAXTECH, is currently trading at 1148, surged sharply in today’s trading session. LUMAXTECH has delivered a strong bullish candle after a few sessions of consolidation, indicating renewed buying interest near the short-term support levels.
The stock took support near the 50-day EMA, which is currently placed at 1,024, and gave a sharp upward bounce, reclaiming the 20-day EMA at 1,105 decisively. This rebound from critical moving average levels reflects strong accumulation by market participants at lower levels.
This kind of EMA alignment, where shorter-term EMAs are significantly above longer-term EMAs, typically confirms a well-established uptrend. Today’s candle breaks this consolidation pattern on the upside, hinting at a potential resumption of the prior bullish trend.
One can look for entries on minor dips towards 1130. On the downside, immediate support is located at 1120. The Relative Strength Index is at 59.66 levels, yet price action remains aggressive-indicating strong demand in line with the rising trend, adding conviction to the breakout. To manage risk effectively, a stop-loss at 1111 is suggested to guard against any unexpected market reversals.
In conclusion, based on the technical analysis and current market conditions, LUMAXTECH presents a promising buying opportunity for those aiming for a 1230 target, provided that appropriate risk management strategies are in place.