The Nifty 50 has risen by approximately 0.3% this week, reaching record highs in three of the five sessions and building on a 3.4% gain last week when the national elections secured political continuity.
The 30-share BSE Sensex opened lower by 169.18 points or 0.22% at 76,912.38 level while the Nifty 50 began at 23,464.95 level, down 35.30 points or 0.15%.
Also Read: Sensex Today Live Updates : Sensex touches 77k before turning red, Nifty down; Ambuja Cements, Brigade Enterprises gain
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, indicated that the market is expected to remain range bound in the near term due to the lack of big triggers till the budget. Because values are high, particularly in the broader market, any big increase will prompt FIIs to sell. If the market falls, DIIs and individual investors will use a buy-on-dips technique that has proven effective in this market.
Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities
The benchmark index has registered an all-time high at 23,481, representing bullish sentiments. Since the past four consecutive sessions, the benchmark index continues to consolidate within 23,400-23,200 levels, indicating a short-term consolidation range. Hence, any extensive breakout may indicate further direction. The short-term traders are advised to follow the 23,200 level as an important support zone. On the upside, we believe this momentum may gear up towards 23,800-24,000, in upcoming weeks, said Rajesh Palviya, SVP, Technical and Derivatives Research, Axis Securities.
Nifty 50 in the current series has witnessed a ong Addition with a price gain of 3.40% (770 points) and a marginal increase in open interest by 1%. As per options data of the weekly expiry scheduled on 20th June, 24,000 and 23,500 Call strikes have high OI concentration, indicating a strong resistance, while on the Put side, high open interest concentration was in 23,000 and 23,300 acting as support, while the pivotal level will be 23,400, explained Palviya.
Stock in focus today – Stock recommendation for Friday by Rajesh Palviya
Gujarat Gas Ltd (CMP: ₹643)
Daily and weekly, the stock has decisively broken out of its multiple resistance zone at 607 levels, indicating a strong comeback of bulls. This breakout is accompanied by huge volumes, which confirmed increased participation. Currently, the index is favourably positioned above its 20, 50, 100, and 200-day Simple Moving Averages (SMA), reaffirming a bullish trend. The daily and weekly strength indicator RSI has turned bullish, which indicates rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of 700-730, with a downside support zone of 615-600 levels.
Gujarat Gas today has seen a price gain of 18.29% in current expiry and an increase in open interest of 30% as per provisional data, indicating a Strong Long build-up. In the June series, there has been a high OI concentration at 650 call strike followed by 640, indicating a probable resistance zone, while strong support is seen at 600 and 570 level, as significant OI concentration on the Put side has been seen. Unwinding in the 620 call strike further augments a positive view of the stock.
Also Read: Stocks to watch: Ambuja Cements, Vi, Havells, Sterlite Tech, Suven Pharma
Triveni Engineering & Industries Ltd (CMP: ₹390)
In the previous week, the stock formed a hammer, and a short-term trend reversal showed strong buying interest at lower levels. However, any follow-up positive weekly close above “hammer’s” high will confirm the pattern. With the current close, the stock has also decisively broken out “down-sloping” trendline resistance at 372 levels and huge volumes,indicating increased participation. The weekly “band Bollinger” buy signal shows increased momentum.
Investors should buy, hold, and accumulate this stock with an expected upside of 420-450 and a downside support zone of 372-365 levels.
With the current close, the stock is on the verge of a “consolidation zone” breakout at around 845 levels. The stock is well placed above its 20, 50, 100 and 200-day SMA, which confirms the bullish trend. The daily, weekly and monthly strength indicator RSI is in positive terrain, indicating sustained strength across all the time frames. Investors should buy, hold and accumulate this stock with an expected upside of 880-950 and a downside support zone of 780-760.
CanFin Homes has witnessed Short Covering with price gains of 13% (93 points) and a decrease in open interest of 20% (as per today’s provisional data). In the June series, there was a high OI seen at 850 call strike followed by 860 and 880, indicating a probable resistance zone, while support was seen at 740, followed by 780. Significant writing at 800 Call further indicates strong support for the stock.
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 decision.
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Published: 14 Jun 2024, 10:00 AM IST
