Buy or sell: Vaishali Parekh recommends buying in 3 stocks today - 7 June
Parekh said that Nifty once again for the second consecutive session witnessed a rangebound movement accompanied with some volatility and ended the day on a flat note near 18,600 zone.
PremiumEquity benchmarks Sensex and Nifty ended flat on June 6 with shares of IT stocks among the top drags as weak global cues weighed on domestic sentiment. Sensex opened 49 points lower at 62,738.35 against the previous close of 62,787.47 and remained in the negative territory for the most part of the day, falling 233 points in intraday trade. The index, however, saw some fag-end buying but that could not help it end with decent gains.
Sensex closed with a nominal gain of 5 points at 62,792.88 while the Nifty, too, ended 5 points higher at 18,599. Shares of IT majors, such as Infosys, TCS and Tech Mahindra ended as the top drags on Sensex. European markets traded lower, and US stock futures were also struggling even as fresh US economic data signalled the Federal Reserve may pause rate hikes in June.
Even though the benchmark index ended flat, over 200 stocks, including the large caps Axis Bank, Bajaj Auto, Tata Motors, Tata Motors - DVR, Mahindra and Mahindra, Titan, UltraTech Cement, IndusInd Bank, DLF and Britannia, hit their fresh 52-week highs in intraday trade on BSE.
Also Read: FIIs halt 3 days losing streak, invests ₹386 crore in Indian stocks on 6 June; DIIs turn net sellers
Day trade guide by Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher for Wednesday's session:
She said that Nifty once again for the second consecutive session witnessed a rangebound movement accompanied with some volatility and ended the day on a flat note near 18,600 zone.
The index has maintained near the 18,600 levels and a major decisive move past 18,650 zone shall trigger for further rise in the coming days with 18,450 level remaining as the strong support zone as of now. BankNifty also, witnessed a sideways movement throughout the session with some fluctuations seen in the final hours to close almost on a flat note, according to Parekh.
‘’The index components has got a mixed trend with Axis Bank and Kotak Bank looking promising whereas HDFC Bank and ICICI Bank remains subdued. The resistance zone of 44,500 zone would be crucial which need to be breached decisively whereas on the downside, the 43,700 level would remain as the important support zone. The support for the day is seen at 18,500 levels while the resistance is seen at 18,750 levels. BankNifty would have the daily range of 43,800-44,500 levels,'' she added.
Parekh recommends buying the following stocks:
Buy Rashtriya Chemicals & Fertilizers Ltd (RCF) at ₹108 with a stoploss of ₹106 and a target price of ₹112
Buy Syngene International Ltd at ₹734 with a stoploss of ₹720 and a target price of ₹757
Buy IRCON at ₹82.50 with a stoploss of ₹81 and a target price of ₹86
Nifty Spot Index
Support – 18500/18450
Resistance - 18750/18800
Bank Nifty Spot Index
Support – 43800/43750
Resistance – 44500/44550
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