Stock Market Today: Six stocks to buy or sell on August 11
Written by Sanjay Kumar
Share Market Guide – August 11, 2023
After the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) announced a hawkish stance, the Indian stock market experienced a notable correction, concluding the day with lower figures. The Nifty index concluded the session down by 89 points at 19,543 levels, while the BSE Sensex plummeted by 307 points to close at 65,688. The Bank Nifty index also witnessed a decline, finishing 338 points lower at 44,541 levels. In the broader market, the small-cap index receded by 0.15 percent, while the mid-cap index recorded a marginal 0.01 percent decrease.
Market Outlook for the Day
According to Nagaraj Shetti, a Technical Research Analyst at HDFC Securities, the negative chart pattern with lower tops and bottoms remains intact as per the daily chart. While a new lower top was formed at 19,645 levels on Wednesday (August 09), there is no clear indication of significant weakness from the lower highs. Shetti suggests that a decisive move above 19,650-19,700 levels could result in a sharp upside move, while further weakness might find support around 19,450-19,400 levels for the short term.
Bank Nifty Under Pressure Following RBI MPC Outcome
The Bank Nifty index faced substantial selling pressure following the announcement of the RBI’s Incremental Cash Reserve Ratio (ICRR) of 10% on a temporary basis. This measure aims to reduce excess liquidity in the banking system, leaving banks with fewer funds to lend. The Bank Nifty closed below the 50-Day Exponential Moving Average (DEMA) of 44,673 on Thursday (August 10). Ashwin Ramani, a Derivatives & Technical Analyst at SAMCO Securities, suggests that the downside support for the Bank Nifty is positioned at 44,300. A breach of this level could lead to a decline until 43,500. To resume an uptrend, the Bank Nifty needs a strong close above 45,100 levels.
US Inflation Data and Market Sentiment
Siddhartha Khemka, Head of Retail Research at Motilal Oswal, highlights the significance of US inflation data released on Thursday. The data is expected to provide further insights into the Federal Reserve’s future policy decisions, potentially influencing the sentiment in the Indian stock market.
Stocks in the Spotlight
Several companies, including SP Apparels, ABB India, Addi Industries, Ceinsys Tech, Dhruv Consultant, and DP Abhushan, are expected to announce dividends in their respective board meetings. Additionally, 35 dividend stocks are trading ex-dividend today, including Samvardhana Motherson, CCL Products, PI Industries, Pfizer, Divi’s Labs, BHEL, Federal Bank, Citi Union Bank, and more.
Iris Clothings and Mena Mani Industries shares will trade ex-split today, with Iris Clothings announcing a stock split in a 1:5 ratio and Mena Mani Industries approving a stock split in a 1:10 ratio.
Day Trading Picks
Stock market experts have recommended a list of day trading stocks to consider:
Sumeet Bagadia (Executive Director at Choice Broking) Picks:
- Godrej Consumer Properties: Buy at ₹1026.30, target ₹1060, stop loss ₹1004.
- TVS Motor: Buy at ₹1349.60, target ₹1392, stop loss ₹1325.
Ganesh Dongre (Senior Manager — Technical Research at Anand Rathi) Recommendations:
- Tata Motors: Buy at ₹618, target ₹635, stop loss ₹605.
- M&M Finance: Buy at ₹286, target ₹296, stop loss ₹280.
Pravesh Gour (Senior Technical Analyst at Swastika Investmart) Selections:
- Coromandel International: Buy at ₹1075, target ₹1094, stop loss ₹1060.
- Sonata Software: Buy at ₹1068, target ₹1094, stop loss ₹1051.
Disclaimer: Investors are advised to consult certified experts before making any investment decisions.
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