Stocks Picks By Sumeet Bagadia: How To Trade Voltas & VBL On Tuesday, 18th June?

Sensex and Nifty experienced substantial volatility last week before setting new records. The Nifty50 hit an all-time high of 23,490.40 before ending the week at 23,465.60, up 0.75 per cent from the previous week. The Indian benchmark indices enjoyed a favorable week overall. Gains were also seen in the Bank Nifty, which ended the week up 0.40 per cent. The domestic stock market is now waiting for a positive budget, which is anticipated to be released next month, while global investors will be watching the BoE and the China central bank's interest rate decisions in the coming days.

Nifty Outlook

"Technically, on a daily scale, the index has formed a dragonfly doji candlestick pattern, which indicates uncertainty. According to this pattern, if the index sustains below 23,330 levels, profit booking is expected. On the flip side, if the index sustains above 23,500 levels, then the rally could extend towards 23,800-24,000. On the downside, immediate support for the Nifty is near 23,000 levels, followed by 22,760 levels, where the 34-Day Exponential Moving Average (DEMA) support is located," said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bank Nifty Outlook

"The Bank Nifty index opened with a gap up but later consolidated in a narrow range before closing the day on a positive note at 50,002. Technically, on a daily scale, the Bank Nifty has formed a doji candlestick pattern, indicating uncertainty at higher levels. On the downside, immediate support for the index is near 49,036 levels, where the 21-Day Simple Moving Average (DSMA) is positioned," Hrishikesh Yedve stated.

Stocks To Buy Today

During the Tuesday, June 18 trading session, Choice Broking's executive director, Sumeet Bagadia, recommended buying Voltas & Varun Beverages shares.

Voltas

Buy VOLTAS in cash @ Rs 1496, stop-loss: Rs 1444, target: Rs 1580

VOLTAS daily chart analysis reveals a notable shift in market dynamics, transitioning from a period of minor declines and sideways consolidation to a promising upside bounce. The current trading session reflects an up move, potentially signalling an upside breakout from a narrow range momentum. This development aligns with a positive short-term trend, further reinforced by a surge in trading volume.

Key technical indicators, such as the Relative Strength Index (RSI), underscore the stock's positive momentum. The RSI not only exhibits positive signals but the stock is also trading above crucial moving averages-specifically, the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). This convergence suggests sustained strength in VOLTAS price action.

Volume analysis further substantiates the credibility of the up move, with a pronounced increase accompanying the positive trend.

The comprehensive evaluation of VOLTAS daily chart implies the existence of a broader bullish pattern in the stock price. This, in turn, presents a compelling long-trading opportunity for investors seeking to capitalize on the anticipated upward trajectory.

Based on the above analysis we recommend buying VOLTAS in cash at CMP of 1496 for the target of 1580 with a stop loss of 1444.

Varun Beverages

Buy VBL in cash @ Rs 1639.25, stop-loss: Rs 1588, target: Rs 1750

The analysis suggests a positive outlook for VBL based on the daily chart. The stock has shown a consistent higher high and higher low pattern over the past 09 days, with a recent breakout above the neckline indicating a potential upward movement. The increase in trading volume and the stock trading above the Volume Weighted Average Price (VWAP) for a short term of 1620 further support a bullish scenario.

Additionally, VBL is trading above its 20-day, 50-day, and 200-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given these factors, the recommendation is to buy VBL in cash at the current market price (CMP) of 1639.25, targeting 1750, with a stop-loss at 1588.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.