Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Or Sell On Thursday, 22nd June

Sensex touched a new lifetime high of 63,558 points and ended at 63523.15, up 0.31 per cent, and after inching closer to its record level Nifty closed at 18856.85, up 0.21 per cent on Wednesday. While the Bank Nifty ended the session at 43859.20 with a 0.21 per cent gain. The top gainers among Nifty stocks were POWERGRID, ONGC, and ADANIPORTS, while the top losers were JSWSTEEL, HINDALCO, and DIVISLAB. The INDIA VIX closed the day up 1.44 per cent at 11.29. With regard to sectors, Nifty CPSE continued to be the top gainer, while Nifty Metal fell by over 1%. The amount of money invested by foreign institutional investors (FIIs) in Indian equities on Wednesday was above Rs 4,000 crore, which was the highest so far in June. In addition, domestic institutional investors (DIIs) who invested more than Rs 550 crore became net purchasers. FII purchasing value was at Rs 13,795.52 crore and selling value was at Rs 9,782.42 crore, according to NSE data, resulting in an inflow of Rs 4,013.10 crore. Whereas, DIIs sold stocks worth Rs. 7,154.50 crore and bought shares for Rs. 7,704.86 crore. As a result, DII's inflow was Rs. 550.36 crore.

Market Outlook

Commenting on the outlook of the Market, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said, "Sensex hits a fresh all-time high of 63,588 despite cautious global cues. Even Nifty attempted to touch new highs but fell short of 12 points. The index finally closed with a gain of 40 points at 18857 levels. Sectorially it was a mixed bag with major buying seen in financial services, especially NBFC. Consistent foreign inflows into Indian equities backed by the country's strong macroeconomic data have driven investors' confidence."

"The primary market is getting back in action with two mid-sized IPOs opening for subscription next week - Ideaforge Ltd & Cyient DLM Ltd. In the near term, all eyes would be on the US Federal Reserve Chair Jerome Powell's two-day testimony before Congress, which began today (Wednesday). It would indicate the Fed's future course of action with regard to the interest cycle. Also, BOE would announce its policy decision tomorrow (Thursday) where a 25bps hike is expected. PM Modi's four-day visit to the US began today (Wednesday) when he met the Top CEOs and tomorrow he would be addressing US Congress, which could further strengthen the Indo-US partnership," Siddhartha Khemka further stated.

Stocks To Buy Or Sell On Thursday, 22nd June

Sumeet Bagadia - Executive Director of Choice Broking has recommended two stocks to buy on Thursday, 22nd June.

Cipla

Buy CIPLA in cash at Rs 1008, stop-loss Rs 975, target price Rs 1040

The stocks have a strong support zone around the 970 level after rising from lower levels. Additionally, the stock has surpassed resilient levels of 1000. On weekly charts, the stock displayed a bullish candle, indicating strength. The RSI indicator is also maintaining above 72 levels, showing that there is much room available for the stock to inch higher. The stock is maintaining the 20 EMA on the daily chart, indicating further solid traction.

Therefore, one can start a long position at CMP 1008 based on the technical framework. However, it would be better to add more at the 990-995 level range. Closing and sustaining above 1018 will move prices in the following days towards 1040-1045 levels. SL may remain at 975.

Tata Chemicals

Buy TATACHEM in cash @ Rs 997.2, stop-loss Rs 975, target price Rs 1040

TATACHEM has bounced back from the support level of 955 and crossed the initial resistance of 980 levels which is also 20 and 50-day EMA. Currently, the stock is trading around 997.2 levels which indicates a breakout above the important moving averages. The breakout above the mentioned levels is backed by strong volumes and hence has the potential to move higher. The stock is trading above 200-day EMA levels indicating strength.

Based on the above analysis we expect TATACHEM to move higher towards 1040 and hence we recommend buying TATACHEM at a CMP of 997.2 with a SL of 975.

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.