Buy or Sell: Consider these 3 stocks on Tuesday, June 18, according to Sumeet Bagadia.

The Indian stock market witnessed a positive gain despite a sluggish start on June 14. The Sensex and Nifty 50 indices rose thanks to the strong performance of the auto and consumer goods industries. However, profit booking was seen in technology stocks, which led to a slight decline in the market. The BSE Sensex closed at 76,992.77 with a gain of 181.87 points and the Nifty 50 closed at 23,465.60 with a gain of 66.70 points.

In the broader markets, the Nifty Midcap 100 gained 1.05% while the Nifty Smallcap 100 rose 0.8%, outperforming the key indices. The India VIX, which measures market volatility, closed 4.93% lower on Friday.

According to Vinod Nair, who heads research at Geojit Financial Services, he sees a brief pause in market growth as there are no new triggers following the US Fed’s dovish stance, reducing hopes of a quick cut in interest rates. With the Union Budget approaching, local investors are cautiously optimistic, expecting stability in the short term. Many believe the government may focus on social welfare programmes, which could lead to a rally in stocks driven by consumer spending.

Read here: Nifty 50 to hit 25,816 in 12 months; ITC, BEML among high conviction stock picks

Buy or Sell Stocks for Tuesday – 18 JUNE 2024

Sumeet Bagadia of Choice Broking suggests focusing on Bajaj Finserv, Reliance Industries and Tata Steel in the upcoming trading session on Tuesday, June 18.

BAJAJ FINSV

The stock price of BAJAJFINSV is at 1591.75, indicating impressive performance and considerable technical strength. It has outperformed the important short-term (20 days), medium-term (50 days) and long-term (200 days) exponential moving averages (EMA). This position above the key EMAs indicates a strong bullish trend, which supports a potential uptrend. Moreover, the stock price has crossed the important level of 1585 and has maintained this level for a week. This stable breakout indicates a strong bullish momentum, which indicates a possible continued upward move.

Moreover, the Relative Strength Index (RSI) has remained above 53.61 and continues to display an upward slope. The RSI’s position and direction indicate strong market sentiment and growing buying interest in BAJAJFINSV, further reinforcing the bullish outlook.

In conclusion, BAJAJFINSV’s strong performance, supported by its position above the critical EMA and positive RSI trend, indicates promising growth prospects. Investors can view this as a solid buying opportunity, confident in its ability to continue growing. Evaluating our data, we predict an encouraging uptrend for BAJAJFINSV and suggest buying it at the current price of 1591.75, with a target price of 1675. It is important to remember that our optimistic forecast will change if the stock drops below 1555.

Tata Steel

Tata Steel is trading at 183.15, showing solid technical momentum after breaking past the 175 mark. This breakout shows signs of bullish strength, indicating a potential increase in the stock’s upward move. Additionally, Tata Steel is above its 20-day, 50-day, and 200-day EMA levels, which confirms the optimistic outlook for the stock.

The level below 175 provides solid support, protecting against downside movement. This plays a key role in keeping the stock’s bullish stance intact. With resistance at 185 on the horizon, breaking it could take the stock to the 198 level and surpass that target. Furthermore, the RSI momentum indicator is climbing, now at 62.80. This rise indicates an increase in buying interest and strength, which suggests further potential gains for the stock.

In summary, TATASTEEL’s strong breakout and its position above key moving averages indicate a bullish trend. Investors holding the stock should maintain their positions with a stop loss at 175, while new investors can consider entering once the stock sustains above 185, targeting 198 and higher.

Our analysis suggests buying Tata Steel at the current price of 183.15. It would also be prudent to buy more at lower prices like 180 and set a stop loss at 175. The target price is 198.

RELIANCE

Reliance share price is at 2955.10, displaying strong technical indicators. A bullish engulfing pattern has appeared on the daily chart, indicating a possible change in market sentiment from negative to positive after a period of sideways movement. This pattern typically signals a reversal and a show of strength.

RELIANCE has a solid support zone close to 2895, matching with its 50-day EMA. This support zone is crucial in blocking more declines. Presently, the stock is above the EMA levels for short (20-day), medium (50-day), and long terms (200-day), signaling a positive trend across different periods. Furthermore, the RSI momentum indicator has begun moving upwards and is now at 55.30. The rising RSI implies growing buying activity and power in the stock’s movements.

A slight hurdle exists around 2983. If this hurdle is crossed, the stock could witness a significant rise, with a potential target of 3075. Investors who already own the stock should continue to do so, and new investors can consider buying the stock for potential profits if it crosses 2983 levels. We recommend buying Reliance at the current market price of 2955.10 with a stop loss at 2895 for a target of 3075.