Trade Setup: 2 Stock Picks By Sumeet Bagadia Of Choice Broking For Wednesday, 14th June

The Indian market rebounded and placed marginally higher as Sensex gained 0.67 percent and ended the session at 63143.16 and Nifty gained 0.62 percent intraday and closed at 18716.15 while Bank Nifty advanced 0.31 percent and firmly closed at 44079.85. NSE Midcap and Small cap convincingly moved on the higher side by 1.22 and 0.70 percent respectively. Maximum sectors ended in green as Nifty Realty shot up by 3 percent while Nifty Pharma skidded by 0.11 percent. In Nifty stocks TATACONSUM, CIPLA and ITC were the top gainers while KOTAKBANK, ADANIENT and ADANIPORTS were the prime laggards.

Commenting on the stock market outlook, Sumeet Bagadia - Executive Director - Choice Broking said "Bank nifty has support at 43700 levels while resistance is placed at 44500. The Nifty have so far had a positive June series as the FMCG, Auto and Banking sector performed pretty well. Indicators such as RSI and MACD are indicating neutral views as of now in the daily chart. Technically, as Nifty manages to close above 18780 levels, there would be another stage for upside rally. The Nifty VIX ended the day at 11.11, and we anticipate that volatility will continue to rise during the following week."

Stocks To Buy On Wednesday, 14th June

Sumeet Bagadia - Executive Director - Choice Broking has picked up two stocks with buy call for Wednesday.

Balkrishna Industries

BALKRISIND is currently quoted at 2322 and has rallied continuously in a larger time frame. COALINDIA has a good support zone around 2200 zone. A good bounce is often witnessed from 2250 levels. Price is quoting above its 40 EMA, which is a critical support zone as well as a strong buying opportunity if the price retests that level. Stock has also taken support at the middle Bollinger Bands, signaling that short-term support has been established. We forecast positive momentum in BALKRISIND in the following weeks for the target price of 2410. SL can be kept as 2275.

GAIL

Buy GAIL in cash @ Rs 107.05, stoploss Rs 104, target price Rs 113

GAIL has a Formed a strong support at 104.5 levels. Currently, the stock is trading around 107.05. A smaller resistance is visible on the charts near 109 levels. Once the stock overcomes the previously mentioned resistance, it will be able to move closer to the target price of 113 and higher. The stock has crossed 20 and 50 day EMA levels and has successfully closed above all important moving averages. RSI is also trading comfortably at 53 levels indicating strength. The Bollinger band has squeezed and price has crossed above the middle band and hence price can move further upwards.

Based on the above analysis we recommend buying GAIL at CMP of 107.05 with a medium term target price of 113. Our analysis will be deemed void if price closes below 104 levels.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.