The Indian stock market is likely to open on a positive note on Friday, tracking upbeat cues from global markets. Gift Nifty also signals a mildly higher start for the benchmark indices, Nifty 50 and Sensex today.
In the previous session, the Nifty 50 index slipped below 23,900, and formed a long negative candle on the daily chart that has erased some of gains made on previous session.
“The underlying trend of Nifty 50 continuous to be weak amidst choppy trends. Further weakness below 23,800 could drag Nifty 50 down to another nearby support of 23,600 levels (opening upside gap of 15th June),” said Nagaraj Shetti, AVP, Technical Research at HDFC Securities.
According to him, the immediate resistance for Nifty 50 is placed at 24,100 levels.
Stocks To Buy
Nagaraj Shetti has recommended two stocks to buy today for short-term. He suggests buying these stocks for a timeframe of 2-3 weeks.
The technical stock picks for today are Edelweiss Financial Services and Vedant Fashions shares.
Edelweiss Financial Services | Buy | Target Price: Rs 146 | Stop Loss: Rs 129
Edelweiss Financial Services share price has been moving in a narrow congestion zone near the crucial hurdle of around Rs 133 – Rs 135 levels over the last few weeks.
According to Shetti, Edelweiss stock price has placed on the verge of decisive breakout of long-term consolidation pattern as per larger timeframe charts like weekly/monthly timeframe. Volume has started to expand during upside breakout in the stock price and daily/weekly RSI shows positive indication.
He recommends buying Edelweiss Financial Services shares at Rs 134.65, for a target price of Rs 146, with a stop loss of Rs 129.
Vedant Fashions | Buy | Target Price: Rs 610 | Stop Loss: Rs 540
The larger range bound movement of the last few weeks has eventually resulted in a sharp breakout on Thursday. Vedant Fashions stock price has sustained above the daily 10/20 period EMA. Volume has started to expand during upside breakout in the stock price and daily 14 period RSI shows positive indication, Shetti said.
He suggests buying Vedant Fashions shares at Rs 565, for a target price of Rs 610 apiece, while maintaining a stop loss at Rs 540 level.
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