The new series of futures & options contracts (June series) started on May 28 with Nifty hitting fresh record high of 15,469.65 surpassing its previous peak of 15,431 recorded on February 16.
For the week ended May 28, Nifty50 gained 1.7 percent to close at 15,435. The broader markets, too, ended with gains of 0.8-1.5%.
Experts say that a strong rollover of contracts from May series to June series suggests that the new series should play out well.
“The Nifty index has broken out of a long consolidation hitting new highs which confirms more strength and higher levels should be seen in the month of June,” Aditya Agarwala, Senior Technical Analyst, Yes Securities said.
“Traders should watch out for levels of 15,450-15,470. If Nifty manages to keep its head above this resistance, it will be on course to test levels of 15,780-16,220. On the downside key supports to watch out for would be 15,300-15,000 levels,” he said.
We have collated a list of trading ideas for the June series on the basis of technical analysis by various experts:
Expert: Mehul Kothari, AVP – Technical Research at AnandRathi
Canara Bank: Buy| LTP: Rs 161| Stop Loss: Rs 148| Target: Rs 184| Upside: 14%
On the weekly scale, Canara Bank has come out of the Ichimoku cloud which indicates strength. Hence, traders are advised to buy the stock near Rs 160 with a stop loss of Rs 148 for the upside potential target of Rs 184 in the next 2-4 weeks.
Ceat: Buy| LTP: Rs 1,318| Stop Loss: Rs 1,270| Target: Rs 1,410| Upside: 7%
Since February 2021, CEAT has fallen to sub-Rs 1,300 levels from Rs 1,760. At this juncture, it is consolidating above the placement of 200-Days EMA. This indicates a halt in the fall.
This provides an excellent risk-reward ratio for traders. Thus, traders are advised to buy the stock in the range of Rs 1,320-1,310 with a stop loss of Rs 1,270 for the upside potential target of Rs 1,410 in the next 2-4 weeks.
M&M Financial Services: Buy| LTP: Rs 160| Stop Loss: Rs 150| Target: Rs 180| Upside: 12%
At this juncture, it is consolidating near the placement of 200-Days SMA. On the weekly scale, it is turning from the Ichimoku cloud support. This provides an excellent risk-reward ratio from traders.
Traders are advised to buy the stock at Rs 160 with a stop loss of Rs 150 for the upside potential target of Rs 180 in the next 2-4 weeks.
Expert: Sacchitanand Uttekar, DVP – Technical (Equity), Tradebulls Securities
Coal India: Buy| LTP: Rs 146| Target: Rs 162| Stop Loss: Rs 137| Upside 11%
On the daily scale, it saw a ‘One White Soldier’ candlestick formation, and a close above its 5-Days EMA points towards a possibility of a breakout as soon as the stock trends above its 200-Days EMA placed around Rs 139.
Indigo: Buy| LTP: Rs 1,776| Buy on dips up to Rs 1,745| Stop Loss: Rs 1,670| Target: Rs 1,880| Upside 6%
The stock has been resilient amid lockdown and Covid-related uncertainties. It has maintained the range of Rs 1,600-1,750.
On absolute price scale, the latest breakout from its 5-months consolidation with a positive crossover on its weekly RSI above 50 suggests that the upside is likely to continue.
ITC: Buy| LTP: Rs 212| Buy on dips up to Rs 211| Stop Loss: Rs 205| Target: Rs 225| Upside 6%
The recent reversal from the lower end of its weekly range helped the stock to register a ‘Piercing Line’ formation on its monthly scale.
The pattern also registered a close above its 5 & 20 months EMA for the second time in the last 6 months. With its weekly RSI already exhibiting a positive crossover above 50 zone, and the monthly RSI hovering around 49, it is likely that the stock may witness a much-awaited relief rally during the current series.
Expert: Sameet Chavan, Chief Technical & Derivatives Analyst at Angel BrokingOrissa Minerals Development Company (OMDC) | LTP: Rs 2,773.85 | Target price: Rs 3,050 | Stop loss: Rs 2,550 | Upside: 10%
This stock has not done anything in the last 8 – 9 months as it has been vacillating within a small range all this while.
Last Thursday, prices finally managed to burst through their long congestion phase. If we take a glance at the volume activity, more than average daily volumes are clearly visible.
On the subsequent sessions, we witnessed a minor correction which can be construed as a pullback move towards the breakout point and hence should be considered a good buying opportunity.
Piramal Enterprises | LTP: Rs 1,782.90 | Target price: Rs 1,950 | Stop loss: Rs 1,680 | Upside: 9%
After seeing a spectacular recovery post-March 2020 fiasco, this stock finally took a breather around the 200-SMA on the weekly chart.
The stock underwent some time-wise as well as price-wise correction in the past three months.
However, looking at the past few weeks’ price action, it appears that the stock has cemented its position around the previous breakout point of Rs 1,600.
This coincided with the rock-solid support zone of the weekly 89-EMA as well.
Expert: Aditya Agarwala, Senior Technical Analyst, YES SECURITIES
Thyrocare: Buy| LTP: Rs 1037| Target: Rs 1200| Stop Loss: Rs 970| Upside 15%
The stock has turned upwards after making a double bottom at levels of 990 and is now on the verge of a breakout from a consolidation pattern.
Further, RSI has turned upwards after taking support at the 60-level which happens to be the upper end of the bear zone confirming the bullishness. Volumes have also picked up in the breakout candle suggesting higher levels.
Lupin: Buy| LTP: Rs 1209| Target: Rs 1300| Stop Loss: Rs 1160| Upside 7%
The stock is on the verge of a breakout from a bullish Flag pattern suggesting bullishness building up. A sustained trade beyond 1230 will trigger the breakout taking the stock higher to levels of 1300.
RSI has also taken support at the 60-level and turned upwards which is a confirmation of strength.Disclaimer
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