Trade Setup for Monday: 2 Stock Picks By Sumeet Bagadia Of Choice Broking

Friday's turbulent session on the BSE Sensex and NSE Nifty 50 triggered losses for the second day in a row. The NIFTY ended the day at 18,563, down 71.15 points, while the bank nifty ended the day at 43,989, down 6.25 points. The overall market performance ended on a red note comprising all broad market indices and major sectoral indices to end on a loss on the Dalal Street. This came after equity mutual funds experienced net inflows of Rs 2,906 crore in May 2023, the lowest level since November 2022, down from Rs 5,275 crore the previous month, according to statistics made public by the Association of Mutual Funds in India (AMFI).

So far in the month of June, foreign portfolio investors (FPIs) have continued to be net buyers of Indian stocks. According to NSDL statistics, FPI inflow into Indian equities in June totals Rs 9,788 crore. FPIs made a total of Rs. 43838 crores in primary market and stock exchange transactions in India in May. FPIs made investments in capital goods, financial, FMCG, automobiles, and automobile components.

Nifty Outlook

Commenting on the outlook of Nifty on Monday, Sumeet Bagadia - Executive Director - Choice Broking said, "Profit booking was observed in the Nifty around the 18,700-18,750 levels. It is crucial for the bullish trend to maintain the key level of 18,500-18,450. The next resistance levels are expected to be around 18,850 to 18,900. Regarding the Bank Nifty, it has support at the 43,600 level, while resistance is anticipated in the range of 44,450 to 44,600."

Market Outlook

Commenting on the outlook of the Indian market on Monday, Sumeet Bagadia said "Investors in the domestic market were cautious as they awaited the release of domestic inflation data on Monday. The Reserve Bank of India's conservative inflation forecast contributed to the selling pressure. Market participants hope that the Consumer Price Index (CPI) inflation for May will decrease from its current level of 4.7%. Global cues also failed to provide support, with the US reporting high unemployment claims and the upcoming release of inflation figures and the Federal Reserve meeting."

Stocks To Buy On Monday 12th June

Here are the two stocks that has been picked by Sumeet Bagadia - Executive Director - Choice Broking to buy on Monday.

United Spirits

Buy MCDOWELL at Rs 888.20, stoploss Rs 865, target price Rs 930

MCDOWELL_N has consolidated in a range of 865-885 levels since last 7 days. Currently, the stock is trading around 888.20 which indicates breakout above the upper band of a range. The breakout above the mentioned range is backed by strong volumes and hence has potential to move higher. The stock is trading above all important moving averages indicating strength. Based on the above analysis we expect MCDOWELL_N to move higher towards 930 levels and above.

CIPLA

Buy CIPLA at Rs 969, stoploss Rs 950, target price Rs 995

Cipla, a leading pharmaceutical company, has displayed a consistent uptrend, holding steady around 960 levels for the past week. The stock is trading above its crucial moving averages of 20, 50, and 100, indicating a bullish sentiment. A minor resistance at 980 levels, when once taken out could act as a catalyst for further upward movement. The Relative Strength Index (RSI) is currently at 63 and trending upwards, reflecting growing buying interest. This makes Cipla an attractive buy.

However, caution is advised, with a close eye on the stock falling below 950, as it could negate the positive outlook. A short-term target of 995 is plausible.

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.