Sumeet Bagadia of Choice Broking Recommends 2 Stocks To Buy Or Sell On Wednesday, 28th June

On Tuesday, the Sensex grew by 0.71 per cent and closed at 63416.03, the Nifty climbed by 0.68 per cent intraday and ended the day at 18817.40, and the Bank Nifty gained by 1.10 per cent and closed the day at 44121.50. The top gainers among Nifty stocks were HDFC Life, Apollo Hospital, and SBIN, while the top losers were Cipla, Britannia, and Tata Consumer.

Nifty Outlook

Commenting on the outlook of Nifty, Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas said "The Nifty witnessed a spectacular rally during the second half of the trading session and closed with gains of ~125 points. On the daily charts we can observe that once again the 20 day moving average has held on and the Nifty has resumed its upmove. We believe that the stage is set for a New All-time high in the coming trading session. The daily and hourly momentum indicator is providing divergent signals. However, we believe that prices have resumed its next leg of upmove and hence we shall assign more weightage to the price action and expect the momentum indicator to align with a lag. Overall, the Bulls have managed to defend the average support which is a sign of strength. In terms of levels, 18650 - 18600 shall act as a crucial support zone while 18880 - 18900 shall act as a crucial resistance zone."

"As far as Bank Nifty is concerned, the Index has decisively closed above the 20 day moving average (43909) which is a bullish sign. The daily momentum indicator has triggered a fresh positive crossover which is a buy signal. Thus, both price and momentum indicator is suggesting a further upside in the Bank Nifty. On the upside we expect it to target levels of 44500," he further stated.
Sumeet Bagadia - Executive Director of Choice Broking said, "On the derivatives front, the highest call OI is at 19000 strike price followed by 18900 strike prices while on the put side, highest OI remains at 18700 followed by 18600 strike price. On the other hand, Bank nifty has support at 43800 levels while resistance is placed around 44500-44600 zone. The market breadth was skewed in the favour of the buyers."

"As June expiry comes to an end, the Indian equities market continues to be the strongest among its international counterparts thanks to continued support from banking stocks. Sectors like Pharma and FMCG may still outperform in the near term," he stated.

Stocks To Buy Today

Sumeet Bagadia - Executive Director of Choice Broking, has recommended to buy or sell on Wednesday, 28th June. The details with trading strategy are as follows.

Bajaj Finserv

The stock continued to rally after the breakout of neckline of Inverted head and shoulder. Even after a sharp rally, the stock is respecting the support of 20 Day Moving Average. Financial Services Index assistance might be viewed as supplementary support. The RSI has maintained its vigour and is comfortable maintaining above 60 levels.

Based on technical parameters one can initiate a long position at cmp 1522.9 for the target of 1560. SL can be kept as 1498.

Biocon

For the past few weeks, the stock is trading in a narrow range i.e., 235-248 range. Seems the stock has taken a pause after the decent rally. Considerably we can say that can be an accumulation phase as there is a lesser movement in short time frame. According to Fibonacci retrenchment, the price action is still resilient and sustaining above 50 percent. The RSI is gradually trending higher, indicating increasing buying interest. Additionally, the price is sustaining the middle Bollinger Band as well. One can initiate a long position at cmp 243.6 for the target price of 237. SL can be kept as 256.

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.