Despite a sluggish start on June 14, the domestic benchmark equity indices, Sensex and Nifty 50, closed the day with gains. The BSE Sensex rose by 181.87 points, or 0.24%, to finish at 76,992.77, while the Nifty 50 increased by 66.70 points, or 0.29%, to settle at 23,465.60. The gains were primarily driven by the auto and consumer durables sectors, while IT stocks experienced profit booking, exerting some downward pressure on the indices.
Broader Market Performance
In the broader markets, the Nifty Midcap 100 outperformed with a rise of 1.05%, and the Nifty SmallCap 100 gained 0.8%. The India VIX, a measure of market volatility, closed 4.93% lower on Friday, indicating a decrease in market uncertainty.
Expert Insights
Vinod Nair, Head of Research at Geojit Financial Services, highlighted a temporary slowdown in market momentum due to a lack of new catalysts following the US Fed’s hawkish stance. This has reduced expectations of an immediate rate cut. Domestic investors are now looking ahead to cues from the upcoming union budget, with a period of consolidation anticipated in the near term. There is a growing sentiment that the government may focus on welfare initiatives, which could boost stocks driven by consumer spending.
Stock Recommendations for June 18: Sumeet Bagadia’s Picks
For the upcoming trading session on Tuesday, June 18, Sumeet Bagadia of Choice Broking has recommended three stocks: Bajaj Finserv, Reliance Industries, and Tata Steel.
Bajaj Finserv (BAJAJFINSV)
Current Price: ₹1,591.75
Bajaj Finserv has shown significant technical strength, trading above its key short-term, medium-term, and long-term exponential moving averages (EMAs). This alignment indicates a robust bullish trend, with the stock sustaining a breakout above the critical level of ₹1,585 for a week. The Relative Strength Index (RSI) has remained above 53.61, suggesting strong market sentiment and growing buying interest.
Recommendation: Buy at ₹1,591.75 with a target range of ₹1,675. A stop loss should be placed at ₹1,555 to protect against downside risk.
Reliance Industries (RELIANCE)
Current Price: ₹2,955.10
Reliance Industries has formed a bullish Engulfing pattern on the daily chart, indicating a potential reversal and strength following a period of consolidation. The stock has strong support near ₹2,895, aligning with its 50-day EMA. The RSI is currently at 55.30, showing increasing buying interest.
Recommendation: Buy at ₹2,955.10 with a target of ₹3,075. A stop loss should be set at ₹2,895 to mitigate risk.
Tata Steel (TATASTEEL)
Current Price: ₹183.15
Tata Steel has demonstrated considerable technical strength, breaking out above the ₹175 level and trading above its short-term, medium-term, and long-term EMAs. This breakout suggests bullish momentum, with the RSI currently at 62.80, indicating increasing buying interest.
Recommendation: Buy at ₹183.15 with a target of ₹198. The stock can also be added on dips at ₹180, with a stop loss at ₹175.
As the market anticipates further cues from the upcoming union budget, the recommended stocks by Sumeet Bagadia—Bajaj Finserv, Reliance Industries, and Tata Steel—exhibit strong technical indicators and present potential opportunities for investors. These recommendations come with suggested entry points, targets, and stop losses to help investors navigate the market effectively on June 18.
