Stocks in focus: Ruchit Jain of 5paisa recommends buying LIC Housing Finance, and Indian Hotels today

Estimated read time 14 min read

Stock Market News: The domestic benchmark indices, the Sensex and the Nifty 50, gained for the fourth consecutive session, reaching new all-time highs in early trade on Tuesday, aided by strong global market trends, buying in IT sectors, and fresh foreign capital inflows.

The Nifty 50 surged by 60 points to 23,529, while the BSE Sensex climbed 101 points to 77,195 immediately after trading began. The markets reopened today after being closed on Monday for Eid al-Agha.

According to Geojit Financial Services’ Chief Investment Strategist, Dr. V K Vijayakumar, the market’s undertone remains optimistic. This rise is being driven mostly by sustained large domestic inflow. It is also vital to recognise that the surge is fundamentally supported by solid economic growth and positive business profitability. Global assistance from the mother market, the United States, which is establishing new records, is also beneficial.

Market Review and Outlook – Ruchit Jain

In the week gone by, Nifty 50 registered a new record high of 23,490, but it consolidated in a narrow range throughout the week and volatility subsided post the elections results event as traders focused more on stock specific approach, said Ruchit Jain, Lead Research Analyst at 5paisa.

Nifty 50 closed just below 23,500 with weekly gains of three-tenths of a percent. Our markets continued to march higher with new milestones seen post the recent election week volatility. In this upmove, FIIs have covered much of their short positions and added new longs which led to the momentum. On the other hand, the confidence has resumed amongst market participants with regards to political stability and hence, lot of stock specific positive momentum is seen. In the coming week, initial hurdle of Nifty 50 will be seen around 23,500 which has acted as a hurdle in last one week. Once this is surpassed, Nifty 50 could rally towards 23,900-24,000 which is the retracement zone of the recent correction. On the lower side, 23,300 followed by 23,000-23,900 zone are the supports. Any dips towards the support should be seen as a buying opportunity.

Traders are advised to look for stock specific opportunities and trade with a positive bias.

Stocks in focus today – Ruchit Jain

On stocks in focus on Tuesday, Ruchit Jain recommends buying two stocks – LIC Housing Finance Ltd, and Indian Hotels Company Ltd.

LIC Housing Finance Ltd

Ruchit stated that the stock has given a breakout above its previous swing high resistance during last week. The breakout was supported by high volumes while the RSI oscillator is also hinting at a positive momentum. The price volume action indicates probability of a continuation of the uptrend and hence, traders can look to buy the stock at current levels and add on any declines.

“We advise positional traders to buy the stock around 730 and add on any declines towards 710. The stoploss on long positions should be placed below 690 for potential target around 800,” said Jain.

Indian Hotels Company Ltd

Jain explained that the stock recently witnessed some correction where the 89 DEMA acted as a crucial support. This correction just seemed to be a consolidation within an uptrend and the stock has now resumed its broader uptrend with good volumes. The RSI also hints at a continuation of the momentum.

“Hence, we advise traders to buy the stock in the range of 613-610 for potential target of 650. The stoploss on long positions should be placed below 580,” added Ruchit.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 18 Jun 2024, 10:25 AM IST

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