Trade Setup: 2 Stock Picks By Sumeet Bagadia Of Choice Broking For Thursday, 15th June

On Wednesday, the Indian market benchmarks NSE Nifty 50 and BSE Sensex closed with marginal gains for the 3rd day in a row. The performance of the Indian stock market was muted, with the Sensex edging up by 0.10 percent to end the day at 63,228.51 and the Nifty recording a gain of 0.21 percent to end the day at 18,755.90. The Bank Nifty, on the other hand, had a 0.26 percent loss and wrapped up the day at 43,988. All other sector indices were up except for those for the banking and IT companies. Tata Consumer, Grasim, JSW Steel, Tata Steel, and Power Grid were among the top gainers in the Nifty 50 index, while IndusInd Bank, Bajaj Finance, Bharti Airtel, Axis Bank, and Hero MotoCorp were among the top losers.

Commenting on the market outlook, Sumeet Bagadia - Executive Director - Choice Broking said "Market participants appeared cautious as the benchmark indices encountered technical resistance levels and investors refrained from making significant moves ahead of the anticipated interest rate decision by the U.S. Federal Reserve. With the market indices approaching their all-time highs, it is expected that a period of consolidation will persist over the coming sessions."

Commenting on the technical outlook of Nifty, Sumeet Bagadia said "Notably, the Nifty displayed a continuation of its upward momentum following a positive closing the previous day, whereas the Bank Nifty exhibited a lackluster performance. For the Nifty to sustain its upward trajectory, it must maintain levels above the 18,650-18,625 zone. This would pave the way for further gains towards the 18,825 and 18,865 levels. On the downside, support levels can be found at 18,600 and 18,550. Option data suggests a broader trading range between 18,500 and 18,900, while the immediate trading range is expected to be within 18,600 and 18,800."

"From a technical perspective, the daily chart displays a positive chart pattern characterized by higher tops and bottoms. The most recent swing low at 18,555 can now be considered a new higher bottom within the sequence. Furthermore, the 10-day Exponential Moving Average (EMA) has been serving as a support level according to the daily timeframe chart.
Market participants are eagerly awaiting the Federal Reserve's policy decision, which is expected to have a significant impact on global financial markets," Sumeet Bagadia further added.

Stocks To Buy On Thursday, 15th June

Sumeet Bagadia - Executive Director - Choice Broking has recommended two stocks to buy on Thursday.

Grasim

Buy GRASIM in cash Rs 1779, stoploss Rs 1736, target price Rs 1852

Grasim is currently trading at 1779. The stock is poised for a significant breakout, making the range of 1780-1800 a crucial zone that has been closely monitored since last year.

The technical indicators support a bullish outlook for Grasim. The Relative Strength Index (RSI) has shown a positive crossover, indicating a surge in buying momentum and potential upward movement for the stock. Additionally, the Directional Movement Index (DMI) is at a level of 25, suggesting strength in the stock's upward trend.

Furthermore, Grasim is trading above all key Exponential Moving Averages (EMA), including the 20-day, 50-day, 100-day, and 200-day EMAs

It is recommended to consider Grasim as an attractive buy at 1779 for the target of 1852

However, it is important to note that the bullish view will be invalidated if the stock falls below 1736

UPL

The daily chart indicates a strong long-term consolidation pattern, characterized by the price remaining within a relatively narrow range. Furthermore, the stock has managed to sustain itself above the 20-day Simple Moving Average, which suggests bullish momentum. The RSI is gradually trending higher, indicating increasing buying interest. Additionally, the price is approaching the middle Bollinger Band as well. It is worth noting that fertilizer stocks are currently gaining momentum, further adding to the positive outlook. One can initiate a long position at cmp 682.7 for the target price of 702. SL can be kept as 669.

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.