Stocks To Buy: Sumeet Bagadia Recommends Cochin Shipyard, V Guard Ind To Trade On Friday, 14th June

Following positive global cues, the key benchmark indices, the Sensex and the Nifty50, started trading at all-time highs on Thursday. Later, the Sensex gained 204.33 points, or 0.27%, to close at 76,810.90, while the Nifty completed the day 0.33% higher at 23,398.90. The Bank Nifty index had a strong start to the day but eventually lost steam, closing the day at 49,847 lower. An excellent U.S. inflation data that raised expectations of a potential interest rate cut by the US Federal Reserve gave the market a lift and traders to witness a consolidation phase.

Nifty Outlook

"Technically, the index on a daily scale has formed a bearish belt hold pattern. As per this pattern, if the index sustains below 23,350, then profit booking is expected. On the downside, immediate support for the Nifty is placed near 23,000, followed by 22,720, where the 34-Days Exponential Moving Average (DEMA) support is placed," commented Neeraj Sharma, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bank Nifty Outlook

"Technically, the Bank Nifty on a daily scale has formed a bearish Marubozu candlestick pattern following the formation of a tri-star doji, indicating weakness. On the downside, immediate support for the index is placed near 49,000 levels, where the 21-DEMA is placed," Neeraj Sharma stated.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, recommended buying the shares of Cochin Shipyard, V Guard Ind during the Friday, June 14 trading session.

Cochin Shipyard

Buy COCHINSHIP in Cash @ 2006.8, stop-loss: 1940, target: 2170

The current trading price of COCHINSHIP is Rs 2006.8. The stock has recently given a breakout above the Rs 2000 level with a significant increase in trading volume, indicating price stability. If the price manages to close above the Rs 2010 level, it may have the potential to reach short-term targets of Rs 2170. On the other hand, immediate support levels are located at Rs 1980. These levels can be considered as opportunities to buy on dips.

The Relative Strength Index (RSI) currently stands at 66.15 and is trending upward, indicating increasing buying momentum. Furthermore, the Stochastic Relative Strength Index (Stoch RSI) has recently experienced a positive crossover, moving out of the oversold region. These technical indicators, when considered together, suggest that COCHINSHIP has the potential to reach a target price of Rs 2170 in the near future.

To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 1940. This precaution will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and the current market conditions, COCHINSHIP appears to present an appealing buying opportunity for those aiming for a Rs 2170 price target, provided that appropriate risk management measures are in place.

V Guard Industries

Buy VGUARD in cash @ 410.2, stop-loss: 395, target: 435

The daily chart analysis of VGUARD reveals a promising outlook for the upcoming week, signalling a sustained upward movement. Notably, the stock has formed a significant higher high and higher low pattern, and the recent upward swing has successfully breached the neckline, establishing a new week high for the stock. This breakout suggests the potential for a substantial follow-through upward movement in the stock price.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. Furthermore, VGUARD is currently trading above its crucial 20-day, 50-day, and 200-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given the overall chart pattern, the analysis suggests a favourable long trading opportunity for investors.

Based on the above analysis we recommend buying VGUARD in cash at CMP of 410.2 for the target of 435 with a stop loss of 395.

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.