Indian stock market: Market indexes, the Sensex and the Nifty50, ended a three-day winning streak on Monday, owing to profit-taking at lofty levels amid weak global data. After initially increasing, both the Sensex and the Nifty 50 achieved fresh intraday highs before declining owing to profit-taking, which was consistent with negative global signals.
The Sensex opened trading at 76,935.41, up from its previous close of 76,693.36, and touched a new high of 77,079.04 throughout the day. However, it closed the day down 203 points, or 0.27%, at 76,490.08. Similarly, the Nifty 50 opened at 23,319.15, up from its previous close of 23,290.15, and reached a new all-time high of 23,411.90. Nonetheless, it closed the day down 31 points, or 0.13%, at 23,259.20.
"The Nifty index began positively and went on to reach a new all-time high of 23411 zones, staying within the range of its initial tick throughout the day. It found support at 23227 and ended with slight losses near 23260. It made a tiny bearish candle but has been producing higher lows for the previous four sessions. Now it has to stay above 23200 zones for an upside move to 23500 and 23700 zones, while supports are at 23100 and 23000 zones," said Chandan Taparia, Head of Equity Derivatives and Technicals, Broking and Distribution, MOFSL.
India The VIX fell 2.84% from 16.88 to 16.40 levels. Volatility has subsided from its recent highs, reassuring the bulls. Call writing is observed at 23500, followed by 23400, and put writing at 23000, then 22900. Option data predicts a bigger trading range between 22700 and 23700 zones, with an immediate range between 23000 and 23500 levels.
Bank Nifty
On the Bank Nifty forecast, Taparia stated, "The Bank Nifty Index opened flattish and gradually extended its momentum towards 50250 zones in the first hour of the session." Later, the index remained turbulent in a larger range between 49750 and 50100 zones until ending flat at 49800. On a daily basis, it formed a Doji candle, although the previous four sessions have seen higher lows. Now it has to stay above 49500 zones for an up advance to 50000 then 50500 zones, while on the downside, support shifts higher around 49500 then 49250 levels." Chandan Taparia recommends three equities to purchase on June 11. According to him, these equities are technically poised for a significant upward movement. The three stocks to purchase on June 11 are Hero Motocorp, Ultratech Cement, and Cipla.
Stocks To Buy
Hero Motocorp: Buy at ₹5,710 | Target price: ₹6,000 | Stop Loss: ₹5,550
Hero Motocorp has delivered a modest range breakthrough on the daily chart and is trading above all key moving averages. Momentum indicator RSI is positive, which may maintain the current upward trend.
Buy Ultratech Cement at ₹10,804 with target price of ₹11,400 and stop loss of ₹10,500
Ultratech cement has delivered a range breakout over the previous 25 weeks as well as a box breakout on the daily chart. It made a solid bullish candle on the daily chart, and supports are steadily migrating higher.
Cipla: Buy at ₹1,529; Target Price: ₹1,630; Stop Loss: ₹1,480
Cipla has broken out in a head and shoulder pattern on the daily chart and is maintaining its gains at higher levels. Buying is seen across Pharma equities, which may maintain the current upward trend.
