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.
“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,” said Vinod Nair, Head of Research, Geojit Financial Services.
Buy or sell stocks for Monday — July 1
Sumeet Bagadia of Choice Broking has recommended three stocks for Monday — Tata Motors, Britannia Industries and ONGC.
TATAMOTORS
TATAMOTORS is exhibiting strong bullish momentum, currently trading at 989.75 levels. The stock has also given a strong breakout of a falling trend line which 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, TATAMOTORS 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.
For traders, keeping an eye on the strong support near 966 levels is advisable which is also its 20 and 50 Day EMA levels, as a breach of this level could signal a shift in sentiment. Overall, TATAMOTORS 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 TATAMOTORS and the CMP of 989.75 with a stop loss of 965 for the target of 1040.
BRITANNIA
BRITANNIA has recently corrected from its record high of 5,725 and has retested an important support level of 5,290, which is also 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 continue rising toward the target of 5,860 and beyond. The RSI indicator is at 63.13, supporting the stock’s ability to climb higher.
Given these technical signals, BRITANNIA shows promising strength and a positive trend. Investors should keep an eye on the stock’s movement around the 5,550 resistance level, as a break above this point could trigger further upward momentum. With the stock trading above all key moving averages, it is well-positioned for a continued rise toward its target.
With a medium-term target price of 5860, we advise purchasing BRITANNIA at the CMP of 5475.55. If the price closes below 5290, our analysis will be regarded as being invalid.
ONGC
ONGC is currently trading at 274.20 levels, demonstrating a robust technical outlook. On the lower side, the stock has a strong support near 263 levels, providing a solid base for its price. Additionally, 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, further reinforcing its strength. On the higher side, 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.
Given these technical signals, ONGC shows promising potential for further gains. Investors should monitor the stock closely around the 279 resistance level, as a break above this point could lead to significant upside momentum. The current positioning above all key moving averages suggests a bullish trend, making ONGC an attractive option for continued growth.
Based on the above analysis we recommend buying ONGC and the CMP of 274.20 with a stop loss of 263 for the target of 293.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
