Stocks To Buy: 2 Technical Picks By Sumeet Bagadia of Choice Broking On Wednesday, 19th June

Tuesday saw Nifty maintain its upward trajectory and reach a new intraday high of 23579, mostly thanks to positive global cues. At 23561 levels, the index closed up 95 points. The Bank Nifty index had a strong start to the day and continued to gain momentum as it ended the day at 50,441 levels. The India VIX ended at 12.97, closing 1.11% higher on an intraday basis.

Nifty Outlook

"Technically, the index broke out of a consolidation area of 23,000-23,500, leading to fresh momentum. In the immediate term, the gain may extend to levels around 23,700 and 23,800. On the downside, the Nifty finds immediate support near 23,400 followed by last week low of 23,200," said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bank Nifty Outlook

"Technically, on a daily basis, the Banknifty has broken the short-term consolidation 49,530-50,250 and has remained above it, indicating strength. According to this breakout, the index may test the levels of 50,800-51,000. On the downside, immediate support is near to 50,000 mark," stated Hrishikesh Yedve.

Stocks To Buy Today

During the Wednesday, June 19 trading session, Choice Broking's executive director, Sumeet Bagadia, recommended buying shares of V Guard Industries and JSW Steel.

V Guard Industries

Buy VGUARD in cash @ Rs 413.8, stop-loss @ Rs 399, target @ Rs 435

VGUARD is exhibiting strong bullish momentum, currently trading at an all-time high of 417.45 levels. The recent breakout above the crucial resistance at 400 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, VGUARD 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 67.6 levels.

For traders, keeping an eye on the strong support near 400 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, VGUARD current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying VGUARD and the CMP of 413.8 with a stop loss of 399 for the target of 435.

JSW Steel

Buy JSWSTEEL in cash @ Rs 925.35, stop-loss: Rs 900, target: Rs 975

JSWSTEEL, currently trading at 925.35 levels, is showing signs of a positive technical outlook. The stock has recently given a strong breakout above 915 levels, demonstrating its ability to maintain price stability.

Notably, the stock has successfully crossed a minor resistance level at 915 levels. This is a positive development, as it signifies a potential change in the stock's trend.

There is another resistance level in the vicinity of 930 levels. If the stock manages to sustain a position above this mentioned resistance, it may pave the way for an upward movement towards the target level of 975 and beyond.
The Relative Strength Index (RSI), a momentum indicator, is currently trading at 57.75 levels. This RSI reading suggests a moderate level of strength in the stock, without being in overbought territory. It implies that there is room for the stock to potentially gather further momentum.

Based on the above analysis JSWSTEEL can be purchased at a CMP of 925.35 for the target of 975 levels with a SL of 900.

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.