Stocks to buy: The Indian stock market sustained its positive momentum, indicating stability post the Lok Sabha election 2024 results, on June 7. Both the Sensex and the Nifty 50 indices climbed by almost 1 percent each, marking the second successive session of gains. This upward trend reflects optimism regarding political stability and policy continuity following the formation of a new coalition government.
“Nifty index opened gap up by 180 points and witnessed swings within a range throughout the day. It took support near 22650 and went on to cross 22900 zones to close with gains of around 200 points. It formed a small bodied Bullish candle on daily frame with longer lower shadow and has started to form higher lows from the last two sessions. Now it has to hold above 22750 zones for an upside move towards 22950 then 23100 zones whereas supports are placed at 22650 then 22450 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL
India VIX cooled off by 12.39% from 18.89 to 16.55 levels. Volatility crashed for the second consecutive day and comforted the bulls to hold at higher zones.
On option front, Weekly Maximum Call OI is at 23000 then 23500 strike while Maximum Put OI is at 22500 then 22300 strike. Call writing is seen at 23200 then 23000 strike while Put writing is seen at 22800 then 22700 strike. Option data suggests a broader trading range in between 22200 to 23500 zones while an immediate range between 22500 to 23100 levels.
Bank Nifty
On the Bank Nifty outlook, Taparia said, “Bank Nifty Index opened gap up and gradually extended the momentum towards 49650 zones in the first half of the session. Later it remained consolidative in a range of 400 points in between 49000 to 49400 zones and ended with gains of around 240 points near 49300 zones. It formed a small Bodied candle on daily scale as some pause was seen at higher zones after huge volatile swings in last few days but managed to hold its 20DEMA . Now it has to continue to hold above 48888 zones for a bounce towards 49750 then 50000 zones while on the downside support is seen at 48888 then 48500 levels.”
Also read: Nifty FMCG gains 6% in 3 sessions: Is the sector set for a turnaround?
Chandan Taparia has recommended three stocks to buy on June 7. According to him, these stocks are technically placed to see a decent upmove. These three stocks to buy today include, Escorts, Dixon Technology and Glenmark Pharma.
Stocks to buy
Escorts: Buy at ₹4,011 | Target Price: ₹4,300 | Stop Loss: ₹3,850
Escorts has given consolidation breakout on daily chart and managed to close above the same. Buying is visible across Auto space which may support the ongoing up move.
Dixon Technology: Buy at ₹9762 | Target Price: ₹10,500 | Stop Loss: ₹9,400
Stock is in overall uptrend and every small decline is being bought into. It has given Inside bar breakout on daily scale and relatively outperforming within IT Space.
Glenmark Pharma: Buy at ₹1,210 | Target Price: ₹1,290 | Stop Loss: ₹1,170
Stock is in perfectly respecting 20 WEMA and inching higher. It has given range breakout on daily chart and gave highest daily close ever which has bullish implications. Momentum indicator RSI is positively placed which may support the ongoing up move in the stock.
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Published: 06 Jun 2024, 08:04 PM IST