Buy/Sell/Hold: Day Trading Picks By Sumeet Bagadia On Thursday, 20th June

Wednesday saw the domestic benchmark index Nifty50 reach record levels for the fifth day in a row, helped by the IT and banking sectors as well as positive global cues. At 23,516, Nifty finally gave up all of its gains and closed the day lower than it started. The Bank Nifty index had a high opening gap and continued to gain strength over the day. As a consequence, Bank Nifty closed the day at an all-time high of 51,398 after reaching a record high of 51,957. The India VIX wrapped up 5.77% higher on an intraday basis and concluded at 13.71, causing some unease among bulls due to a surge in volatility.

Nifty Outlook

"Technically, on a daily basis, the index sustained above the breakout of last week's consolidation range of 23,000 to 23,500 levels, indicating strength. According to this latest breakout, the index may test 23,800-24,000 levels in the near future. Thus, a buy-on-dips strategy should be used in the Nifty, with support at 23,330," said Neeraj Sharma, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bank Nifty Outlook

"Technically, on a daily scale, the Bank Nifty has crossed the previous barrier of 51,134 and managed to close above it, suggesting strength. Thus, as long as Bank Nifty holds 51,000 levels, it could test the 51,800-52,000 levels in the short term," added Neeraj Sharma.

Stocks To Buy Today

The executive director of Choice Broking, Sumeet Bagadia, recommended buying the two stocks listed below during the Thursday, June 20-intraday trading session.

VST Tillers Tractors

Buy VSTTILLERS in cash @ Rs 4172.7, stop-loss @ 4080, target @ 4444

VSTTILLERS is exhibiting strong bullish momentum, currently trading at an all-time high of 4224 levels. The recent breakout above the crucial resistance at 4150 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, VSTTILLERS is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 72.21 levels.

For traders, keeping an eye on the strong support near 4080 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, VSTTILLERS current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying VSTTILLERS and the CMP of 4172.7 with a stop loss of 4080 for the target of 4444.

Thomas Cook (India)

Buy THOMASCOOK in cash @ Rs 240.25, stop-loss: Rs 230, target: Rs 255

THOMASCOOK is currently trading at Rs 240.25. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of Rs 225 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching Rs 255 levels. On the downside, substantial support is evident near Rs 230.

Furthermore, THOMASCOOK is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 68, signalling an upward trajectory and confirming an increase in buying momentum.

Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively support the notion that THOMASCOOK may have the potential to achieve a target price of Rs 255 in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 230 to protect the investment in case of an unexpected market reversal. A prudent strategy involves considering buying opportunities on market dips at levels of Rs 238.

In summary, considering the technical analysis and prevailing market conditions, THOMASCOOK appears to present a promising buying opportunity for those targeting a Rs 255 price objective, contingent upon the implementation of prudent risk management measures.

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.