Indian market closed in the red on June 16 ahead of the outcome of the US Federal Reserve meeting. The S&P BSE Sensex fell by about 300 points while Nifty50 closed below 15,800 levels ahead of the policy outcome.
Late night, India time, the US Fed signaled that broad changes in policy may happen sooner than expected. “The US central bank officials moved their first projected rate increases from 2024 into 2023,” said a Reuters report.
Back home, sectorally, buying interest was seen in FMCG, as well as IT stocks while profit booking was visible in metals, industrials, energy, capital goods, and power stocks on June 16.
Stocks that were in focus included Jubilant FoodWorks, which closed with gains of nearly 2 percent, and Jai Corp that rallied over 15 percent on Wednesday. All the stocks hit a fresh 52-week high.
When the market opens on June 17, the first reaction will be to the comments made by the US Fed overnight.
But aside of the knee-jerk reaction in the market overall, here's what Ruchit Jain, Senior Analyst- Technical and Derivatives, Angel Broking, recommends investors should do with these stocks when the market resumes trading today:
The stock has been forming a ‘Higher Top Higher Bottom’ structure and is thus in an uptrend. Recently, the corrections within the uptrend have managed to find support around its ‘20-DEMA’ which is now placed in the range of Rs 3,115-3,120.
Hence, one should adopt a buy-on-dips strategy and use any corrections towards the mentioned support range as a buying opportunity.
The prices are in uncharted territory and reciprocal retracements indicate a probable target of Rs 3,360 in the near term.
During the last week of May, the stock had given a breakout from a long consolidation phase and post that breakout, prices have rallied sharply in the last three weeks.
The volumes during this up move have been higher indicating a good buying interest in this stock. Thus, the trend remains positive but the near-term support is placed around Rs 142.
Hence, one should use a buy-on-dip approach and look to buy on any price corrections towards the support. The immediate resistance for the stock is seen around Rs 172.
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