Profit booking at higher levels took center stage as the Indian stock market benchmarks—the Sensex and the Nifty 50—ended their four-day winning streak with losses on Friday, June 28. Despite hitting fresh all-time highs during the session, both benchmarks succumbed to profit booking as investors took gains amid mixed global cues.
The Nifty 50 reached a record high of 24,174 during the session but closed 34 points, or 0.14%, lower at 24,010.60, with 26 stocks advancing and 24 declining. Similarly, the 30-share Sensex hit a new record high of 79,671.58 but ended with a loss of 210 points, or 0.27%, at 79,032.73, with 20 stocks declining.
Vinod Nair, Head of Research at Geojit Financial Services, commented, “India’s optimism about the upcoming budget and upgrade in GDP forecasts continues to provide momentum in the market. Large caps are in favour due to the comeback of FIIs. However, profit booking ensued at the end of the week, at higher levels, in financials, especially private banks, which dragged the market down after the recent rally.”
Stock Recommendations for Monday, July 1
Sumeet Bagadia of Choice Broking has recommended three stocks for Monday: Tata Motors, Britannia Industries, and ONGC.
Tata Motors (TATAMOTORS)
Tata Motors is exhibiting strong bullish momentum, currently trading at 989.75 levels. The stock has given a strong breakout of a falling trend line, supported by robust trading volumes, reinforcing its strength. This technical breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.
Additionally, Tata Motors is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 57.40 levels. Investors should watch for strong support near 966 levels, as a breach could signal a shift in sentiment. Bagadia recommends buying Tata Motors at the current market price (CMP) of 989.75 with a stop loss of 965 and a target of 1040.
Britannia Industries (BRITANNIA)
Britannia has recently corrected from its record high of 5,725 and has retested an important support level of 5,290, near its 20-day EMA. This indicates that the stock is finding a strong base at this level. Currently, Britannia is trading above all its significant moving averages, reinforcing the positive outlook for the stock.
The immediate resistance for Britannia is at 5,550. Once the stock successfully crosses this barrier, it has the potential to rise towards the target of 5,860 and beyond. The RSI indicator is at 63.13, supporting the stock’s ability to climb higher. Bagadia advises purchasing Britannia at the CMP of 5475.55 with a target of 5860. The analysis will be invalid if the price closes below 5290.
Oil and Natural Gas Corporation (ONGC)
ONGC is currently trading at 274.20 levels, demonstrating a robust technical outlook. The stock has a strong support near 263 levels, providing a solid base for its price. ONGC has crossed its short-term (20 Day) and medium-term (50 Day) EMA levels, indicating a positive trend.
The stock is trading above all significant moving averages, reinforcing its strength. A small resistance is observed near 279 levels. Once ONGC surpasses this resistance, a sharp upward move towards the target of 293 can be anticipated. Bagadia recommends buying ONGC at the CMP of 274.20 with a stop loss of 263 and a target of 293.
Investors should closely monitor these levels and movements to capitalize on potential opportunities in the market.
