Table of Contents
Trade setup on Tuesday
On the outlook for the Nifty 50 index, Deepak Jasani, Head of Retail Research at HDFC Securities, said, “The Nifty 50 index rose with a big gap on June 03 and formed a hammer-like hammer-like pattern. It made a new all-time high with large volumes based on the event and economic data. It could now rise towards 23,490 in the near term while 23,039 could offer support.”
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today
On the outlook for the Bank Nifty index, Neeraj Sharma, AVP Technical and Derivatives Research at Asit C Mehta, said, “The Bank Nifty index opened with a big gap up and registered an all-time high of 51,133.20, finally settling the day on a positive note at 50,980. The Bank Nifty produced a hanging man candlestick pattern on top, which awaits further confirmation. The index has broken over the 49,975 barrier and continues climbing to new highs. If the Bank Nifty remains above its breakthrough level, the bull runs might extend to 52,000-52,700. On the downside, trend line support is nearing 50600 levels, with the recent breakout point at 49,975.”
“The India VIX Index has retraced from its recent highs and came close to the 19 mark, which signifies rising confidence of investors in the Indian equity market. This happened after the Exit Polls gave the incumbent Narendra Modi government a third term. Suppose the actual Lok Sabha Election result comes in sync with the Exit Polls. In that case, we can witness further nosedive in the Indian VIX today, and the index may soon touch the 15 mark,” said Sumeet Bagadia, Executive Director at Choice Broking.
Lok Sabha Election results in focus
Expecting the current Indian stock market rally to continue further, Siddhartha Khemka, Head of Retail Research at Motilal Oswal said, “We expect the market to reach new highs given the clear majority for the ruling party in exit polls, good macro trends, and solid corporate earnings. One can focus on manufacturing, capex, infrastructure and financials as a long-term investment theme.”
Buy or sell stock ideas by experts
On stocks to buy today, stock market experts — Sumeet Bagadia of Choice Broking; Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi; and Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher — recommended eight stocks to buy or sell on Tuesday.
Sumeet Bagadia’s stocks to buy today
1] Reliance Industries: Buy at ₹3020.65, target ₹3240, stop loss ₹2900.
Reliance share price is currently positioned at ₹3020.65 levels, reflecting a solid foundation established at the support level of ₹2900 which is also close to its 20 EMA levels. Additionally, Reliance shares exhibit resilience by trading above crucial moving averages, affirming its inherent strength. The stock has also shown a strong breakout of a falling trend line, indicating bullish momentum.
2] LIC Housing Finance: Buy at ₹678.70, target ₹730, stop loss ₹657.
The current trading price of LIC Housing Finance shares is ₹678.7. The stock has recently formed an inverted head and shoulders breakout with a significant increase in trading volume, indicating a strong bullish trend. If the price manages to close above the ₹680 level, it may have the potential to reach short-term targets of
₹730. On the other hand, immediate support levels are located at ₹670. These levels can be opportunities to buy on dips.
Ganesh Dongre’s buy or sell stocks
3] SRF: Buy at ₹2270, target ₹2380, stop loss ₹2210.
We have seen significant support in this stock at around ₹2210. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹2270 price level, which may continue its rally till its next resistance level of ₹2380. So, traders can buy and hold this stock with a stop loss of ₹2210 for the target price of ₹2380 in the near term.
4] UCO Bank: Buy at ₹62, target ₹68, stop loss ₹58.
In the short term, the stock has seen a bullish reversal pattern. Technically, retrenchment could be possible until ₹68. So, holding the support level of ₹58, this stock can bounce toward ₹68 in the short term. Hence, the trader can use a stop loss of ₹58 for the target price of ₹68.
5] JTL Industries: Buy at ₹215, target ₹260, stop loss ₹230.
We have seen significant support in this stock, around ₹215. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹230 price level, which may continue its rally till its next resistance level of ₹260. So, traders can buy and hold this stock with a stop loss of ₹215 for the target price of ₹260 in the near term.
Shiju Koothupalakkal’s shares to buy today
6] FACT: Buy at ₹703, target ₹745, stop loss ₹688.
The stock has indicated a turnaround after a short correction, with a positive candle formation on the daily chart improving the bias. The RSI also showed a trend reversal, which has signalled a buy. With much upside potential visible to carry on with the positive move further ahead, we suggest buying the stock for an initial upside target of ₹745, keeping the stop loss of ₹688.
7] Cochin Shipyard: Buy at ₹2010, target ₹2130, stop loss ₹1950.
The stock has indicated a flag pattern on the daily chart and has breached the resistance zone, signifying a fresh upward move in the coming days. With the overall bias maintained strong, we can anticipate a spurt in the coming sessions to scale a new high and enter a new territory. With the chart pattern looking appealing, we suggest buying the stock for an initial upside target of ₹2130, keeping the stop loss of ₹1950.
8] RailTel: Buy at ₹430, target ₹455, stop loss ₹418.
The stock has taken support near the confluence of 50EMA and 100 period MA at the ₹394 zone and indicated a significant gap-up pullback to improve the bias, and further rise can be anticipated. The RSI is well placed, indicating a trend reversal after the gradual slide, and has much upside potential to carry on with the positive move further ahead. We suggest buying the stock for an initial upside target of ₹455, keeping the stop loss of ₹418.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 04 Jun 2024, 08:18 AM IST
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