Trade Setup: Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Or Sell On Monday, 19th June

The FMCG and banking sectors saw robust buying activity, which boosted the Indian equity benchmarks BSE Sensex and NSE Nifty 50 close at record closing highs just inches short of all-time highs. While the Sensex ended the day at 63,384.58, an upside gap of 466.95 points, the Nifty closed at 18,826 level, less than 61.6 points from its all-time high of 18,887.6. Both domestic and foreign institutional investors (DII) continued their buying binge throughout the week in terms of market participation. FIIs purchased Rs. 6,645.99 crore of Indian equity shares, while DIIs purchased Rs. 1,319.21 crore of shares. It was the first time NIFTY closed above the key 18,800 level on a weekly basis, which leads experts to conclude that recent price action, technical indicators, and institutional buying activity point to a positive market outlook for NIFTY.

Nifty Outlook

Commenting on the outlook of Nifty, Sumeet Bagadia - Executive Director - Choice Broking said "NIFTY, exhibited notable developments during the previous week. After forming a shooting star pattern, a bearish indicator, the index opened with a significant gap up at 18,595 and closed the week at 18,826. This closing marked a significant milestone as it was the first time NIFTY achieved a weekly closing above the crucial 18,800 level. Furthermore, the index maintained a pattern of higher highs and higher lows, suggesting a positive market sentiment."

"Technical analysis reveals that NIFTY experienced a cup and handle breakout, consolidating above the neckline level of 18,650 throughout the week. This breakout, coupled with the index's ability to sustain the upward momentum, indicates a bullish outlook for the market. The weekly Relative Strength Index (RSI) remained above the 60 levels, underscoring the prevailing bullishness," Sumeet Bagadia stated.

"As NIFTY approaches its all-time high of 18,887, which may serve as a resistance level, the possibility of surpassing this milestone becomes a significant consideration. Should NIFTY manage to breach its all-time high, it may pave the way for further bullish movement towards the psychological level of 19,000. However, it is important to note that the 19,000 level is expected to act as a substantial resistance, potentially influencing market dynamics," he further added.

"Regarding support levels, the index finds considerable support around the 18,600 level, providing a potential downside buffer should a market correction occur. In terms of market participation, both Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII) continued their buying spree throughout the week. FIIs purchased shares worth Rs. 6,645.99 crore, while DIIs acquired shares worth Rs. 1,319.21 crore. This sustained institutional buying activity serves to instill confidence among retail investors and further reinforces the bullish sentiment prevailing in the Indian markets, said Sumeet Bagadia.

"Overall, the recent price action, technical indicators, and institutional buying activity suggest a favorable market outlook for NIFTY. However, investors should remain cautious of potential resistance at the all-time high level and closely monitor market developments for a comprehensive understanding of the ongoing market trends," Sumeet Bagadia stated.

Stocks To Buy Or Sell On Monday, 19th June

Sumeet Bagadia - Executive Director - Choice Broking has picked up 2 stocks with buy rating for Monday, 19th June.

Jindal Steel

Buy JINDALSTEEL in Cash @ Rs 544.20, stoploss Rs 530, target price Rs 570
JINDALSTEL has formed a bullish candle on daily chart. The Stock has successfully surpassed the important level of 541 which was a prior resistance.

A small resistance is placed around 545 levels which is also a 50 day EMA levels. Once stock closes above the mentioned levels it can move towards 570 levels and above.

The RSI indicator is trading around 54 levels indicating strength. On weekly chart the stock has taken a support of the lower band of Bollinger band and approaching middle band. This bounce from lower band will help stock to move higher.

Based on the above mentioned technical analysis we recommend buying JINDALSTEL at CMP of 544.20 levels with an SL of 530 for the target of 570.

Siemens

SIEMENS has been steadily trending upwards, finding strong support at the 20-day moving average around 3750 levels. The stock is now approaching a potential breakout of a falling trendline on the daily chart, further enhancing its bullish prospects.

The upward movement is backed by high trading volumes and a positive crossover in the Relative Strength Index indicating growing buying interest and positive momentum.
Additionally, the stochastic oscillator has displayed a positive crossover as well.

Based on technical parameters, one can initiate long position at CMP Rs 3793.1 for the target price of Rs 3940 with stoploss of Rs 3710.

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.