Trade Setup: 2 Stock Picks By Sumeet Bagadia Of Choice Broking For Tuesday, 13th June

The market had an upbeat trading session on Monday, with the Sensex rising 0.16 percent to close at 62724.71, the Nifty climbing 0.21 percent intraday to conclude at 18601.50, and the Bank Nifty falling 0.10 percent to end the day at 43944.20. While Nifty FIN SERVICES, Nifty PHARMA, and Nifty Pvt Bank closed on the negative side, the sectors Nifty AUTO, Nifty IT, and Nifty REALTY all ended on a positive note. The largest gainers among Nifty stocks were BPCL, HCL TECH, and INFY, while the top losers were LT, CIPLA, and Titan. Inflation as determined by the Consumer Price Index (CPI), which was 4.70% in April, dipped to 4.25% in May, according to statistics issued on Monday by the Ministry of Statistics and Programme Implementation (MoSPI). The US inflation data and the Federal Reserve's interest rate decision, both scheduled for this week, are expected to keep the market volatile.

Commenting on the outlook of Nifty, Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas said "The Nifty witnessed rangebound price action today. It traded within the range (18677 - 18555) of the previous trading session and closed with gains of 38 points. On the daily charts, we can observe that the Nifty has closed in the green after falling for two consecutive days. Nifty has managed to hold on above the 18530 level below which the uptrend is likely to change. The hourly momentum indicator has triggered a fresh positive crossover, however, the daily momentum indicator has a negative crossover and thus provides divergent signals. The Bollinger bands are contracting indicating that there can be a consolidation. Thus, both price and momentum indicators is suggesting that there could be a consolidation in the near term and the overall uptrend is still intact. In terms of levels, 18530 - 18500 shall act as a crucial support zone while 18778 - 18800 shall act as an immediate hurdle zone."

Commenting on the outlook of Bank Nifty, Jatin Gedia said "As far as Bank Nifty is concerned, the index has closed in the negative for the third consecutive day. It is trading around the lower end of the rising channel and also the 20-day moving average (43980). We expect the Bank Nifty to hold on to this support and resume its upmove. The short-term target is placed at 44500."

Stocks To Buy On Tuesday, 13th June

Sumeet Bagadia - Executive Director - Choice Broking has recommended to buy 2 stocks today.

Naukri

Buy NAUKRI in cash @ Rs 4268.60, stoploss @ Rs 4145, target price Rs 4470

NAUKRI is consolidating since last 11 days in a broad range of 4090-4310 levels. NAUKRI has also formed a bullish candle on daily charts. Once stock crosses its resistance of 4310 which is the higher level of the range mentioned the stock shall move towards the further resistance of 4470 levels. The RSI indicator is also comfortably trading at 63.39 levels which show the strength for the stock to move upwards.

We recommend buying NAUKRI at CMP of 4268.60 with a medium-term target price of 4470. Our analysis will be deemed invalid if the price closes below 4145 levels.

INDHOTEL

Buy INDHOTEL in cash @ Rs 387.70, stoploss Rs 378, target price Rs 406.

The stock consistently traded in a higher high higher low pattern. The stock has had a modest pullback from 400 levels, but has also experienced a fast bounce from the initial support level of 380 levels, which is also the 20 Day EMA level. The RSI indicator is currently trading at a comfortable level of 60, signifying strength. The stock is currently trading above all significant moving averages. The stock has demonstrated a bounce from the middle band of the Bollinger band, respecting the initial support on the daily chart.
Based on the above mentioned analysis we recommend buying INDHOTEL at CMP of 387.70 with a SL of 378 for the target of 406 levels and above.

Disclaimer

The stock has been picked up by market analysts and is not a recommendation of 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.