Buy or sell stocks: Domestic benchmark indices posted strong gains on Monday, August 3, extending their winning streak to a fourth straight session. The rally was driven by a sharp decline in crude oil prices, fuelled by optimism over a potential peace agreement between the US and Iran.
The BSE Sensex climbed 544 points, or 0.70%, to settle at 78,639, while the NSE Nifty 50 advanced 391 points, or 1.60%, to close at 24,774.30.
Stock market today
Nifty 50
Nifty 50 witnessed a strong start to the week, opening with a gap-up of 189 points at 24,572 and extending its rally to close at 24,774, gaining 390.70 points (+1.60%). The index traded between 24,515 and 24,609, where the 24,600 zone acted as a profit-booking area for most of the session. However, a sharp 200-point surge during the final minutes of trade helped the index close at 24774 at the day’s high, resulting in a strong bullish daily candle. Technically, Nifty has strengthened its bullish structure by closing well above all key moving averages, including the 200 EMA, reinforcing the long-term positive trend. The 5-minute chart reflected steady consolidation after the opening gap-up before the late buying momentum triggered a decisive breakout. Market sentiment remained constructive, supported by an RSI of 66.87, while India VIX edged up to 11.92 and the PCR stood at 1.12, indicating a balanced yet optimistic derivatives setup. Sector-wise, Nifty IT, Metal, and Nifty Private Bank emerged as the top-performing sectors, whereas Nifty Media ended as the key laggard.
According to Sumeet Bagadia, Executive Director at Choice Broking, the index continues to maintain a Sideways to Bullish bias as long as it holds above the immediate support zone.
“Support is placed at 24,500–24,555, while 24,820–24,900 remains the immediate resistance area. A sustained move above resistance could extend the ongoing rally, whereas any dip towards support may continue to attract buying interest. Expected trading range for the next session is 24,500–24,850,” said Bagadia.
Bank Nifty
Bank Nifty witnessed a strong session, opening with a gap-up at 57,569 and closing at 58,247, gaining 983.10 points (+1.72%). After the positive opening, the index rallied sharply during the first hour of trade, reflecting strong buying interest. It then lost momentum and remained largely range-bound through most of the session as profit booking capped further upside. However, a sharp 550-point surge in the final minutes of trading completely changed the intraday structure, helping the index close at the day’s high and form a large bullish green candle on the daily chart, indicating renewed buying strength and improved market sentiment.
Bagadia noted that the index continues to maintain a Sideways to Bullish bias. Support is placed at 57,850–58,000, while 58,666–58,800 remains the immediate resistance zone.
“A sustained move above the resistance area could trigger further upside momentum, while the support zone is expected to attract buying interest on any intraday decline. The expected trading range for the next session is 57,850–58,800,” he added.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five breakout shares to buy on Tuesday, 4 August: Aditya Birla Capital, Diffusion Engineers, I G Petrochemicals, Mahindra and Mahindra Financial Services, and Gulf Oil Lubricants India.
1] Aditya Birla Capital: Buy at ₹424, Target ₹450, Stop Loss ₹405
ABCAPITAL has resumed its primary uptrend after witnessing a brief consolidation near its recent highs, indicating healthy profit booking rather than any structural weakness. The stock has been consistently respecting its 20-day and 50-day EMA, highlighting strong buying interest on every decline. In the latest session, it delivered a decisive breakout above the 410 resistance zone and registered a fresh lifetime high around 430.70, confirming renewed bullish momentum.
The RSI has given a positive crossover and is trading near 64.61, reflecting improving strength without entering extreme overbought territory. Strong price action backed by higher volumes suggests continued accumulation. As long as the stock sustains above the 405 support zone, the momentum is expected to remain intact, with 450 emerging as the next immediate upside target
2] Diffusion Engineers: Buy at ₹406, Target ₹440, Stop Loss ₹385
DIFFNKG is showing renewed strength after undergoing a healthy correction from its recent highs and has now resumed its primary uptrend. The stock has reclaimed all its major daily moving averages and is comfortably trading above the 20-day, 50-day, 100-day and 200-day EMA, reflecting a strong bullish structure. After consolidating in the 380–400 range for several sessions, it has delivered a breakout above the psychological 400 mark with improving participation.
The price continues to maintain a higher high and higher low formation, indicating sustained buying momentum. RSI has also turned higher, supporting the positive trend. The 385 level acts as a crucial support and stop-loss zone. If the stock sustains above 400, it has the potential to extend its rally towards the 440 target in the coming sessions.
3] I G Petrochemicals: Buy at ₹497, Target ₹535, Stop Loss ₹471
IGPL has displayed a strong trend reversal after spending several months consolidating around its long-term 200-day EMA, which repeatedly acted as a reliable support zone. The stock absorbed supply efficiently near these levels before witnessing a sharp recovery towards the 500 mark. In the latest session, it has delivered a convincing breakout above the previous swing high around 475, supported by a notable increase in trading volumes, indicating fresh institutional participation.
The stock is now trading above all major daily moving averages, confirming a strengthening bullish trend. Momentum indicators also remain supportive, with RSI moving firmly into bullish territory. The 471 zone now acts as an important support and stop-loss level. Sustaining above the breakout zone could pave the way for an advance towards the 535 target.
4] Mahindra and Mahindra Financial Services: Buy at ₹405.5, Target ₹430, Stop Loss ₹384
M&MFIN continues to maintain a strong bullish structure with a well-defined higher high and higher low formation, reflecting sustained buying interest over the past several weeks. The stock has successfully reclaimed all its major daily moving averages and is now trading comfortably above the 20-day, 50-day, 100-day and 200-day EMA, reinforcing the prevailing uptrend. After consolidating near the 385–400 zone, it has delivered a strong breakout above the psychological 400 mark and is now trading close to its all-time high levels.
The recent rise has also been supported by healthy volumes, suggesting continued accumulation. As long as the stock sustains above the 384 support zone, the bullish momentum is expected to continue. A decisive move above its lifetime high could trigger the next leg of the rally towards the 430 target.
5] Gulf Oil Lubricants India: Buy at ₹1115, Target ₹1195, Stop Loss ₹1072
GULFOILLUB has staged a strong technical comeback after spending several months reclaiming its long-term moving averages. The stock successfully held its 200-day EMA on the daily chart while also finding support around the 50-day and 100-day EMA on the weekly timeframe, signalling a significant improvement in the broader trend. It had repeatedly faced supply near the 1060–1065 resistance zone, but the latest session witnessed a decisive breakout above both the 1100 psychological mark and the previous resistance levels.
The rally was accompanied by a gain of more than 4% and strong volume participation, confirming buying conviction. RSI has strengthened to around 66.79, reflecting positive momentum. As long as the stock holds above 1072, it has the potential to extend the ongoing rally towards the 1195 target.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
About The Author
