Trade Setup For Tuesday: Top Stock Picks By Ruchit Jain of 5paisa.com

Nifty was just a few points away from setting new highs at start on Monday, but it closed the session in the red. Nifty had a strong start to the week and was only seven points away from setting a new record high. On Monday, the Sensex and Nifty both ended down by 0.34% and 0.37% at 63168.30 and 18755.45, respectively. On June 19, Nifty ended the day 132.15 points below its record high after shares sold by foreign portfolio investors (FPIs) worth an approximate Rs 1,030.90 crore and domestic institutional investors (DIIs) offloaded shares worth Rs 365.20 crore.

Market Outlook

Commenting on the outlook of Nifty, Ruchit Jain, Lead Research Analyst at 5paisa said "Nifty ended in the red in Monday's session and was few points away from hitting new highs at open. However, the Banking index has seen some selling pressure as the index breached the 20 DEMA during last week and entered a short term corrective phase. The pullback move in the Bank Nifty index on Friday marked a high around 61.8 percent retracement on the hourly charts and thus this level of 44080 became a crucial hurdle for the banking index. On the lower side, Thursday's low of 43526 becomes a crucial support as it is around its 40 DEMA. A move below this level in Bank Nifty could then result in some further selling pressure. However, the important supports on Nifty are still intact as the index is trading in a rising channel and 18670 followed by 18570 as important supports for the Nifty index. Traders are advised to tighten their stoploss below the mentioned supports in the respective indices as below these, the index could witness some corrective phase."

"On the other hand, the Nifty Midcap index has continued its up move and hit another record high. But the momentum readings on this index are in a highly overbought zone and the index is trading around its retracement resistance. Hence, traders are advised to wait for the readings to cool-off in the near future which could provide better risk reward ratio for investments rather than chasing at current levels,"

Stocks To Buy Or Sell On Tuesday, 20th June

Ruchit Jain has recommended 3 stocks to buy on Tuesday, 20th June

Abbott

Stock is forming a 'Higher Top Higher Bottom' structure and is in an uptrend. Price volume structure indicates possibility of continuation of uptrend. Traders can buy in the range of Rs. 23100-23000 with a stoploss below Rs. 22500 for a short term target of Rs. 24000.

Bajaj Consumer

Stock has given breakout from a consolidation phase and volumes have increased recently indicating buying interest. Traders can buy in range of Rs. 194-192 with a stoploss below Rs. 185 for short term targets of Rs. 203 and Rs. 210.

Lemon Tree Hotels

The recent price up moves has been supported by higher volumes while the corrective phases have seen low volumes. RSI oscillator is indicating positive momentum. Traders can buy in range of Rs. 95-94 with a stoploss below Rs. 91.50 for short term targets of Rs. 99 and Rs. 102.

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.