Indian Equity Market: Indian equity market indices Sensex and Nifty 50 have been on an upward trend for three consecutive trading days, hitting fresh closing highs on Friday, June 7. Despite a sharp 6% drop on June 4, the market indices have shown a robust rise so far in June. In the first week of this month, Sensex has risen around 3.7% while Nifty 50 has risen nearly 3.4%.
During trading hours, the Sensex index hit an all-time high of 76,795.31 before closing at 76,693.36, up 1,619 points or 2.16 percent, with all stocks posting positive results. The Nifty 50 index rose 469 points or 2.05 percent to close at 23,290.15. Only two stocks declined – SBI Life (1.03 percent) and Tata Consumer (0.43 percent).
“On the Nifty front, it has currently closed in the 23,200-23,300 zone. Following the Lok Sabha election results, the market is confident that a government will be formed as soon as possible. Expectations of a stable government have brought the market mood back to the bullish zone. At the same time, the VIX has also stabilised below 20 after hitting a high of 52 above 30 last week. Hence, market volatility is likely to be low for the next few days,” said Ganesh Dongre, Senior Research Manager, Anand Rathi.
Stock Market Updates
Speaking about the outlook for Nifty, Dogre said, “Judging from today's chart patterns, it started with a gap up and Nifty continued its bullish trend throughout the day, hence at the end of the day, Nifty managed to close in positive territory above 22,200 levels. Hence, as far as Nifty is concerned, the bullish momentum is likely to continue in the coming trading sessions as well. Hence, support for Nifty lies at 22,700-22,800 levels and resistance at 23,400-23,500 levels.”
Talking about the outlook for Bank Nifty, he said, “Meanwhile, as regards Bank Nifty, it has started with a gap up today and has continued its bullish trend throughout the day, hence, in the coming trading sessions, support for Bank Nifty is likely to be at 48000 levels and resistance at 51000 levels.”
Anand Rathi's Stock Pick of the Day
Dongre provides expert analysis and recommendations on the Nifty 50 index. For day trading stocks, he recommends three stocks to buy today – Bank of Baroda, Sarvotech, and HCL Tech.
Stocks to buy
1]Bank of Baroda: Buy at ₹270 | Target Price: ₹283 | Stop Loss: ₹263
The stock is seeing major support around Rs 263 and currently is again seeing reversal price formation at Rs 270 and may continue to rise towards the next resistance level of Rs 283, hence traders can buy and hold this stock with a stop loss of Rs 263 towards a target price of Rs 283 in the coming weeks.
2]Salvotec: Buy at ₹84 | Target Price: ₹90 | Stop Loss: ₹78
In the short-term trend, the stock is exhibiting a bullish reversal pattern and technically it may narrow to 90. So, if the support level of 78 holds, the stock may bounce towards the 90 level in the short term and traders can proceed with a stop loss of 78 for a target price of 90.
3]HCL Tech: Buy at ₹1430 | Target Price: ₹1485 | Stop Loss: ₹1390
The stock has seen major support around Rs 1390. So, as of now, the stock may again see reversal price formation at the price level of Rs 1430 and continue to rise till the next resistance level of Rs 1485. So, traders can buy and hold the stock with a stop loss of Rs 1390 towards a target price of Rs 1485 in the coming weeks.
Disclaimer: The views and recommendations expressed above are those of the individual analysts, experts and brokerage firms and not of Mint. You are advised to consult a qualified professional before making any investment decisions.
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