Trade Setup: Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Or Sell On Friday, 16th June

On weekly expiry, Dalal Street ceases surging as the index retraces to its prior support. While the Bank Nifty fell by 1.24 percent and ended the day at 43443.60, the Sensex dropped 0.49 percent and ended at 62917.63. The Nifty too suffered an intraday loss of 0.36 percent and ended the day at 18688.10 level. While Nifty PSU Bank and Media were the top losing sectors, Nifty Pharma and FMCG stayed on the buying side. The most notable gainers among Nifty stocks were APOLLOHOSP, DIVISLAB, and DRREDDY, while the top losers were HEROMOTOCO, WIPRO, and INDUSINDBK.

Commenting on the market outlook, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said "Domestic equities witnessed selling pressure after the US Fed made hawkish comments. Profit booking in index heavyweights after three days of gains led Nifty to close with a loss of 68 points (-0.4%) at 18688 levels. The broader market (Mid / small cap Index), outperformed with gains of +0.2% each. Sectorially it was a mixed bag with buying seen in Healthcare and FMCG while banking was a major loser today. Despite the pause in the interest rate, US Fed highlighted the likelihood of rate hikes in the next two consecutive policy meetings, thus dampening investor sentiments. Now all eyes will be on ECB's policy outcome, which is due later today. Market could remain consolidative for the next few days, as several other central banks would be announcing their policy decisions."

Stocks To Buy On Friday, 16th June

Sumeet Bagadia - Executive Director - Choice Broking has recommended 2 stocks to buy or sell today on Friday, 16th June.

Jubilant FoodWorks

Buy JUBLFOOD in cash Rs 497, stoploss: Rs 485, target price: Rs 520

The stock has given a breakout above 495 levels and has also closed above the mentioned level. The breakout is supported with decent volumes indicating strength. Currently stock is moving above 20 and 50 Day EMA. The stock has a small resistance close to 501 levels which is also 200 Day EMA. Once stock crosses the above mentioned resistance stock can move towards 520 levels and above.

With a medium term outlook one can buy JUBLFOOD at CMP of 492.45 with a SL of 480 for a target price of 515.

Larsen and Toubro

Buy LT in cash Rs 2361.30, stoploss Rs 2325, target price Rs 2450

Stock is trading at 2361.30 levels. On a closing basis, the stock has respected the support levels and hasn't closed below its strong support levels of 2330. LT can now progress even further towards all-time high levels and beyond. The strength for the stock to climb upwards is demonstrated by the RSI indicator, which is comfortably trading at 66 levels. The stock is also moving above all important moving averages. Once stock crosses the level of 2370 it can move towards the level of 2450 and above.

Based on the above technical analysis we recommend buying LT at CMP of 2361.30 for a medium term outlook with a stop loss of 2325 for targets of 2450.

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.