Trade Setup: Ruchit Jain of 5paisa.com Recommends 3 Stocks To Buy On Friday

The Indian market benchmarks NSE Nifty 50 and BSE Sensex closed Wednesday at new highs after opening the day at record highs. During the session, Sensex and Nifty both exceeded the 64k mark and 19k level respectively. After reaching record highs of 19,011.25, the Nifty ended the day at 18,972.10, up 1.50%. Furthermore, the Sensex soared to fresh highs of 64,050.44 before closing at 63,915.42, up 1.50%. Top Nifty gainers were Tata Motors, HDFC Life, DRL, JSW Steel, and Apollo Hospitals, while top Nifty losers were Adani Enterprises, Coal India, Kotak Bank, ONGC, and Wipro. Metals, pharmaceuticals, and oil & gas showed strength as all 13 major sectoral indices closed on a positive note.

Market Outlook

Commenting on the performance of Nifty on Wednesday, Ruchit Jain, lead research analyst at 5paisa.com said, "Nifty started the expiry with a gap up and marked a new record high at open. The index continued its momentum throughout the day and even achieved a new milestone of 19000 before ending the day tad below it. The index finally hit a new record high and the 19000 mark for which the market participants were waiting for.

The recent upmove has been supported by broad market participation which is a positive sign. The 20 DEMA again acted as a support in the correction and the higher top higher bottom structure resumed which hints at a continuation of the trend. FII's had muted action throughout the June series in the index futures segment, but they formed long positions a day ahead of the June series expiry. These long positions indicate their positive view on the markets for the July series as well and until we see any signs of reversal, traders are advised to continue to trade with the trend."

Commenting on the market outlook he said "The immediate support for the Nifty index would be seen in the gap area at 18830 while positional support has shifted higher to 18700. On the higher side, the initial hurdle is seen around 19035 followed by 19125 which are retracement resistances on the short-term charts. The Bank Nifty index recently witnessed a time-wise corrective phase in the last one month and seems to have resumed its uptrend. Until there's a failure to this breakout, we expect the banking space to continue its up move in the short term."

Trade Setup For Friday

Ruchit Jain, lead research analyst at 5paisa.com has recommended 3 stocks to buy on Friday, 30th June.

Sun Pharma

The stock has given a breakout from a consolidation phase with good volumes. The 20 DEMA is acting as a support while RSI is indicating a positive momentum. Traders can buy in the range of Rs. 1020-1010 with a stop-loss below Rs. 980 for short-term targets of Rs. 1060 and Rs. 1090.

HCL Tech

The stock has recently given a breakout above its swing-high resistance. The stock is showing relative strength to other IT heavyweights and the short to medium-term charts indicate the possibility of an up-move in the short term. Traders can buy in the range of Rs. 1070-1060 with a stop-loss below Rs.1030 for short-term targets of Rs. 1120 and Rs. 1140.

Grasim

The stock has recently seen a consolidation phase in the range of Rs.1700-1800. Currently, prices are trading near the support end of the range and hence, the risk-reward ratio is favourable for buying the stock at the current level. Traders can buy in the range of Rs. 1740-1730 with a stop-loss below Rs.1690 for short-term targets of Rs. 1790 and Rs. 1830.

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.