After touching record high of 15,909, Nifty witnessed resistance. Experts say 16,000 is a crucial level as breakout above that level can further fuel the rally. Investors/traders should tread with caution at higher levels, they say.
For the week ended June 18, Nifty closed below 15,700 levels, snapping 4 weeks of a winning streak.
Technically, while the resistance is at 15,900-16,000, crucial support for the Nifty50 index is placed at 15,400.
“We are now in the monthly expiry week and looking at the overall positioning of our market, we expect the volatility to increase a bit. If we take a glance at the weekly chart of Nifty, we can see two back-to-back small body candles and last week’s formation resembles a ‘hanging man’ pattern,” Sameet Chavan, Chief Technical & Derivatives Analyst at Angel Broking said.
“Such a pattern requires confirmation in the form of breaking its low. Hence, it would be interesting to see how things pan out in the first half of this week. As far as levels are concerned, 15,820 – 15,880 are immediate resistances, whereas 15,550 – 15,450 – 15,400 are support levels,” he said.
Chavan advises traders to lighten up positions at higher levels and it is better to go one step at a time for the time being.
We have collated a list of trading ideas by different experts ahead of the June F&O expiry on Thursday, 24 June with a holding period of 2-4 weeks:
Expert: Mehul Kothari, AVP – Technical Research at AnandRathi
Aurobindo Pharma: Buy| LTP: Rs 952| Stop Loss: Rs 915| Target: Rs 1020| Upside: 7%
Due to the high volatility in the market, Kothari recommends sticking to defensives/consumption stocks with a short-term view. Aurobindo Pharma is one of them, he said.
The stock recently found support near the Rs 920 level, which is the placement of Ichimoku cloud on the daily scale.
Hence, traders are advised to buy the stock near Rs 950 with a stop loss of Rs 915 for the upside potential target of Rs 1020 in the next 2 – 4 weeks.
Sun Pharma: Buy| LTP: Rs 668| Stop Loss: Rs 645| Target: Rs 705| Upside: 5%
During the month of May 2021, Sun Pharma confirmed a major breakout above the Rs 650-mark and has now again retested the breakout level.
Similar to Aurobindo, even Sun Pharma has found support at the Ichimoku cloud support on the daily chart.
The risk-to-reward ratio looks lucrative for a short-term buy. Thus, traders are advised to buy the stock near Rs 665 with a stop loss of Rs 645 for the upside potential target of Rs 705 in the next 2 – 4 weeks.
UBL: Buy| LTP: Rs 1366| Stop Loss: Rs 1300| Target: Rs 1480| Upside: 8.42%
In the week ended June 11, the stock underwent a strong breakout above the Rs 1,320-mark from the pattern which resembles a bullish Cup and Handle pattern.
Since then, the stock has been consolidating. At this juncture, it is trading near the placement of 20-DEMA and rising trend line support.
Thus, traders are advised to buy the stock at Rs 1,360 with a stop loss of Rs 1,300 for the upside potential target of Rs 1,480 in 2 – 4 weeks.
Expert: Sumeet Bagadia, Executive Director at Choice Broking
Bajaj Auto: Buy| LTP: Rs 4164| Target: Rs 4350-4400| Stop Loss: Rs 4000| Upside 4%
On the weekly chart, the stock has formed a Hammer Candlestick with support of its Horizontal Trend line as well as 50% retracement level of its previous up move, which can be considered a Bullish Reversal formation and indicates an upside movement in the counter.
On an hourly chart, the true strength indicator has given a positive crossover on the upside where it is indicating good strength for the stock to have a movement on the upside.
On the daily chart, the stock has been trading with a positive crossover of 100, and 50 Daily Moving Average which can be considered a Bullish Crossover which shows a Bullish movement in the counter.
D-Mart: Buy| LTP: Rs 3317| Target: Rs 3600-3700| Stop Loss: Rs 3120| Upside 8%
On the monthly chart, the stock has given a breakout of its previous resistance levels with volume activity which suggests strength in the counter for the upside.
Moreover, the stock has given a breakout of the rising trendline and sustained above the same can show strength in the counter.
On the daily chart, the stock has tested the horizontal line and bounced after making Doji Candle, which further adds strength.
Momentum indicator Stochastic, K% is trading above D%, which points out strength in the counter. On a daily chart, the stock has been trading above all the Moving Average, which indicates a bull run in the upcoming days.
HDFC Life Insurance: Buy| LTP: Rs 709| Target: Rs 760-800| Stop Loss: Rs 670| Upside 7%
On the monthly chart, the stock has been trading in a pennant formation which points out a bullish trend in the counter. Also, the stock has given a breakout of the Falling wedge formation, which suggests a reversal move in the counter.
Moreover, the stock has confirmed the bullish engulfing candlestick pattern which suggests a bullish move in the counter.
Furthermore, the stock has also sustained above Upper Bollinger Band formation and 100-Days Moving Averages, which point to a bullish rally in the upcoming month.
A momentum indicator RSI & MACD is also supportive with a positive crossover that shows bullish strength in the stock.
Sameet Chavan, Chief Technical & Derivatives Analyst at Angel Broking
UPL | Sell | LTP: Rs 808 | Target price: Rs 765 | Stop loss: Rs 849 | Downside: 5%
This counter was one of the biggest losers on Friday. We could see this stock sliding and closing below the crucial support of the 20-day exponential moving average on the daily chart after nearly two months.
On the weekly timeframe, this led to the confirmation of the shooting star pattern which does not bode well for the bulls.
Considering these pieces of evidence, further profit-booking in this stock cannot be ruled out.
We recommend selling on a bounce towards Rs 820 – 825.
Rajesh Palviya, VP, Head Technical and Derivative Research at Axis Securities Ltd
Asian Paints: Buy| LTP: Rs 3049| Target: Rs 3220| Buy Range 3050-3000| Stop Loss: Rs 2930| Upside 5%
On the daily chart, the stock has given a triangular breakout on a closing basis which signals positive bias. On the daily chart, the stock is making a series of higher highs and higher lows with huge volumes signals increased participation.
This buying momentum was observed from its 20, 50, and 100-day SMA which supports bullish sentiments on medium-term time frame.
The daily and weekly strength indicator RSI is quoting above 50 mark and in a bullish mode which supports rising strength. The above analysis indicates an upside of 3140-3220 levels. The holding period is 3-4 weeks.
The stock has given a “multiple resistance breakout” on a closing basis along with rising volumes. On the daily chart, the stock has also formed higher Top and higher Bottom formation indicating shift of trend to the upward
The stock is placed above its 20, 50-Days SMA, and averages are also inching upward along with prices, which reconfirms positive bias.
The daily and weekly strength indicator RSI is in bullish mode along with positive crossover which supports rising strength. The above analysis indicates an upside of 4530-4880 levels. The holding period is 3 to 4 weeks.
On the daily chart, the stock has witnessed “Symmetrical Triangle” breakout indicating resumption of earlier up move.
On the weekly chart, the stock continues to trend higher forming a series of higher Tops and higher Bottoms formations. Huge volumes spurt on breakout confirms increased participation on the rally. The stock is well placed above its 20, 50, and 100-Day SMA which supports bullish sentiments.The daily and weekly strength indicator RSI is in a bullish mode which supports rising strength as well as momentum. The above analysis indicates an upside of 319-343 levels. The holding period is 3 to 4 weeks.
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