Here are two stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for Friday, 20 June.

Best stocks to buy today

BODALCHEM: Buy above: ₹68 | Stop: ₹64.50 | Target: ₹74-78

LTFOODS: Buy aboveL ₹426 | Stop: ₹410 | Target: ₹475-495

The stock market on Thursday

On June 19, Indian stocks closed slightly lower in a choppy session, with the Nifty 50 slipping below 24,800 as most sectors—auto being the lone exception—saw selling pressure. The market opened flat-to-negative and spent the day trading in a tight band, buffeted by mixed global cues after the US Federal Reserve held rates steady but warned of higher inflation and slower growth ahead.

Mounting geopolitical strains in West Asia further dampened sentiment. By the bell, the Sensex had lost 82.79 points (0.10%) to end at 81,361.87, while the Nifty dropped 18.80 points (0.08%) to finish at 24,793.25. Broader gauges underperformed, with the BSE Midcap and Smallcap indices each sliding over 1.5%.

Outlook for trading

As the markets remained muted, it tested investor patience but did not give up the lower levels. Over the last one month, the 500-point range has been stifling the market sentiment. However, the trend seen over the last few days highlights that the Nifty 50 managed to hold on and did not give up.

On the charts, the doji formation continues to keep investors guessing. Taking cues from options data, we can add that the levels around 24,800 that had steady Put writers have now ensured that the upward possibility gets more wings. With the PCR nearing 0.95 we can expect some trended move today. Stay alert.

The trend that is emerging suggests that the dips seen last week managed to hold the support zone and the gap-down opening was covered to ensure that the prices traded above the range area that developed in the last few days. Hence, one should track the trends that are in progress as the upmove needs to continue its way above 25,000 (Nifty Spot) to renew the bullish bias.

Momentums on hourly charts are indicating that the prices after settling down seems to have witnessed a resumption of selling pressure. With the gradual and hesitant rise emerging from lower levels we can expect the rise to remain hesitant.

For undertaking shorts, we need to see the Nifty move above 24,500, which is the immediate support as per the open interest data. If we witness a 30-minute range breakout on Tuesday we can consider to trade on either side as the trends still remain tentative, where we expect some resistances to kick in.

While the trends in the indices are still unclear there is plenty of action as far as the stocks are concerned.

Two stocks to trade, recommended by NeoTrader’s Raja Venkatraman for 20 June

BODALCHEM (Cmp ₹67.28)

BODALCHEM: Buy above: ₹68 | Stop: ₹64.50 | Target: ₹74-78

• Why Bodal Chemicals is recommended: After spending a lot of time in consolidation the prices corrected sharply and broke recent supports to test the cloud support, suggesting that the trends could now revive. As the prices have now neared the cloud support region around ₹68, we can look to trade the rebound. Consider going long.
• Key metrics
  • P/E: 43.24
  • 52-week high: ₹88
  • Volume: 360.45K
• Technical analysis: Support at ₹60; resistance at ₹80
• Risk factors: Market volatility and sector-wide fluctuations in geopolitical news could impact returns
• Buy at: Above ₹68
• Target price: ₹74-78 in 1 month.
• Stop-loss: ₹64.50.

LTFOODS (Cmp ₹424.70)

LTFOODS: Buy above: ₹426 | Stop: ₹410 | Target: ₹475-495

• Why LT Foods is recommended: LT Foods is experiencing a positive trend, a “tailwind”, due to factors like strong growth in its basmati rice business, particularly its flagship brands like Daawat and Royal, and a successful digital supply chain transformation. The recent decline into the strong KS band is targeting a revival and can be seen as an opportunity to initiate some buy opportunity.
• Key metrics
  • P/E: ₹69.72
  • 52-week high: ₹484.75
  • Volume: 583.40K
• Technical analysis: Support at ₹385; resistance at ₹480
• Risk factors: Rising input costs, increased operational expenses, and potentially foreign exchange impacts
• Buy at: Above ₹426
• Target price: ₹475-495 in 1 month
• Stop-loss: ₹410.

 

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.