The Sensex began 96.95 points higher at 77,434.54, while the Nifty 50 gained 21.40 points to 23,537.40.
The opening levels revealed a restrained but optimistic mood among traders, with predictions of sectoral performance shaping early trading patterns.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, believes that the present market trend is a significant sectoral churn. Huge amounts of money are coming into attractively priced largecap banking stocks, while profit booking is taking place in sectors such as capital goods, communications, metals, and FMCG. This churn is expected to continue in the foreseeable future since it is a good trend. The overvalued broader market area is also taking a break.
Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on June 20
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
Tracking the positive global cues and robust undertone, our domestic market started on a firm note. But soon after, some hesitancy was seen in the benchmark index at the elevated zone, and a bout of profit booking was seen in the initial trading hours. Despite this, the bulls showed resilience, pushing the market into uncharted territory, which too was short-lived as another bout of profit booking set in during the final hours. Eventually, the Nifty 50 index concluded the session a tad above 23,500, with a mere loss of 0.18 percent,said Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One.
The benchmark index ended its five-day winning streak with insignificant changes in the price chart. However, the formation of a Bearish candle at the elevated zone should not go unnoticed, and caution should be warranted. From a technical standpoint, the consolidation zone from the previous week, which was around 23,400-23,300, is expected to act as a support level in case of any minor price fluctuations during the upcoming trading sessions, followed by the strong support of 23,200. On the upper end of the price spectrum, we observe 23,650-23,700 to be an immediate resistance level. It is crucial for traders to carefully monitor these key levels, as they will serve as strategic decision points in their trades, explained Krishan.
Looking ahead, it is expected that there will be ongoing sector rotation that will be influential for traders. The banking sector has exhibited strong performance, and it is anticipated that further movement within this sector will serve to bolster the benchmark. Hence, it is advisable to keep focusing on the stock-centric approach for outperformance, added Osho.
Top Stock Recommendations For Thursday by Osho Krishan
On stocks to buy today, Osho Krishan recommended two stocks – Sundaram Finance Ltd, and Persistent Systems Ltd.
Sundaram Finance Ltd
Sundaram Finance has been in a cycle of higher highs – higher lows on a broader time frame, hovering above all its EMAs on the daily time frame chart. The stock recently has recouped from the 100 DEMA, which historically could be seen as a strong support zone for the counter and has started gaining traction. On the oscillator front, MACD and 14-period RSI showcase a trend reversal, suggesting a lucrative risk-reward ratio in the counter from the short to medium-term time frame.
“Hence, we recommend to BUY Sundaram Finance around ₹4,700-4,680 keeping a stop loss of ₹4,390 for a potential target of ₹5,000-5,040,” said Osho.
Persistent Systems Ltd
Persistent Systems witnessed a substantial increase in price in the last couple of trading sessions from the crucial zone of 200 SMA on the daily chart. Additionally, the counter is witnessing a positive crossover of 21 DEMA to 50 DEMA, construing a positive development. From a technical standpoint, the counter has reversed from critical support, which historically has proved its mettle. On the oscillator front, 14-period RSI and MACD both signal a continuation move, suggesting a potential upside journey in a comparable period.
Hence, we recommend to BUY Persistent Systems around ₹3,820-3,800 keeping a stop loss of ₹3,600 for a potential Target of ₹4,100-4,140,” advised Krishan.
Also Read: Nifty 50 Share Price Live Updates: Nifty 50 is trading at ₹23,508.95
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 20 Jun 2024, 10:00 AM IST
