In the broader markets, the Nifty Midcap 100 rose by 1.05%, and the Nifty SmallCap 100 gained 0.8%, both outperforming the main indices. The India VIX, a gauge of market volatility, closed 4.93% lower on Friday.
Vinod Nair, Head of Research at Geojit Financial Services, noted a temporary slowdown in market momentum due to a lack of new catalysts following the US Fed’s hawkish stance, reducing expectations of an immediate rate cut. Domestic investors are now awaiting cues from the upcoming union budget, hinting at a period of consolidation in the near term. There’s a growing sentiment that the government may prioritize welfare initiatives, boosting stocks driven by consumer spending.
Buy or Sell stocks for Tuesday — June 18
For the next trading session on Tuesday, June 18, Sumeet Bagadia of Choice Broking has recommended these three stocks – Bajaj Finserv, Reliance Industries and Tata Steel.
BAJAJ FINSV
BAJAJFINSV is currently trading at 1591.75 and has exhibited a noteworthy performance, demonstrating significant technical strength. The stock has surpassed all of its key short-term (20 Day), medium-term (50 Day), and long-term (200 Day) exponential moving averages (EMAs). This alignment above all major EMAs indicates a robust bullish trend, providing a solid foundation for further upward movement.
The stock has also experienced a breakout above the critical level of 1585 and has successfully sustained this level for a week. This sustained breakout is a strong bullish signal, suggesting that the stock has the momentum to continue its upward trajectory.
Moreover, the Relative Strength Index (RSI) has remained above 53.61 and continues to display an upward slope. The RSI’s position and direction indicate strong market sentiment and growing buying interest in BAJAJFINSV, further reinforcing the bullish outlook.
In summary, BAJAJFINSV’s performance, supported by its position above key EMAs and a positive RSI trend, highlights the stock’s potential for continued growth. Investors can consider this as a strong buy signal, with the expectation that the stock will maintain its upward momentum.
Based on our analysis, we anticipate a favorable upward movement for the stock and recommend buying BAJAJFINSV at a CMP of 1591.75, with a potential target range of 1675. However, it is important to note that our bullish outlook would be invalidated should the stock drop below 1555.
RELIANCE
RELIANCE is currently trading at 2955.10 levels, showing significant technical strength. The stock has formed a bullish Engulfing pattern on the daily chart, signaling a potential reversal and strength following a period of sideways consolidation. This pattern often indicates a shift in market sentiment from bearish to bullish.
The stock has a robust support level near 2895, which aligns closely with its 50-day EMA. This support level is critical as it provides a strong foundation, preventing further downside movements. Currently, RELIANCE is trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels, indicating a bullish trend across various time frames.
Additionally, the momentum indicator RSI has started to move higher, currently trading at 55.30. This upward movement in the RSI suggests increasing buying interest and strength in the stock’s price action.
On the higher side, there is a minor resistance around 2983 levels. A successful breach of this resistance could lead to a strong upward move, with the stock potentially reaching a target of 3075. Investors holding the stock from lower levels should maintain their positions, while new investors can consider entering above the 2983 resistance level for potential gains.
Based on the above analysis we recommend buying RELIANCE at CMP of 2955.10 with a stop loss of 2895 for the targets of 3075.
TATA STEEL
TATASTEEL is currently trading at 183.15 levels, exhibiting considerable technical strength following a robust breakout above the 175 level. This breakout signifies bullish momentum and suggests that the stock has the potential for further upward movement. TATASTEEL is also trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels, reinforcing the positive sentiment surrounding the stock
On the lower side, the 175 level acts as a strong support, providing a cushion against potential pullbacks. This level is crucial for maintaining the stock’s bullish stance. If the stock sustains above the minor resistance at 185, it is likely to move towards the target price of 198 levels and beyond.
Additionally, the momentum indicator RSI has moved higher, currently trading at 62.80. This upward trend in the RSI indicates increasing buying interest and strength, suggesting that the stock could continue to rise further.
In summary, TATASTEEL’s strong breakout and its position above key moving averages indicate a bullish trend. Investors holding the stock should maintain their positions with a stop loss at 175, while new investors can consider entering once the stock sustains above 185, targeting 198 and higher.
Based on the above analysis we recommend buying TATASTEEL at CMP of 183.15, It can also be added on dips at 180 with a stop loss of 175 for the targets of 198.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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Published: 15 Jun 2024, 09:51 AM IST
