Buy or sell stocks: The domestic benchmark indices, the Sensex and Nifty 50, finished at new highs on Friday, wiping election-related losses and indicating to greater economic growth.
This support level aligns closely with its short-term (20 Day) and medium-term (50 Day) EMA levels, reinforcing the stock's strength.
The stock's recovery from key EMA levels and the upward trajectory of the RSI signal a favourable outlook.
On the downside, Dr Reddy's Laboratories has a strong support level at 5,800, which aligns with its long-term (200 Day) EMA.
Given these technical indicators, Dr Reddy's Laboratories shows potential to move towards a target of 6,410 and above.
Buy or sell stocks: The domestic benchmark indices, the Sensex and Nifty 50, finished at new highs on Friday, wiping election-related losses and indicating to greater economic growth.
The NSE Nifty 50 closed up 2.05% at 23,290.15 points, while the S&P BSE Sensex rose 2.16% to 76,693.36.
The Nifty 50 gained 3.4% this week, while the Sensex climbed 3.7%, recouping all losses from Tuesday, when Narendra Modi's alliance won the general elections by a surprisingly narrow margin.
Meanwhile, the Reserve Bank of India raised its GDP growth forecast for the current fiscal year to 7.2% from 7% on Friday while keeping the benchmark borrowing rate unchanged, as predicted.
Also Read: Sensex, Nifty 50 settle at fresh closing highs; 5 key factors that drove the market today
According to Reuters, the US economy added much more jobs than projected in May, and annual wage growth increased, highlighting the labor market's durability and diminishing the chance that the Federal Reserve will be able to begin rate decreases in September.
The Labor Department's widely watched employment data on Friday also revealed the unemployment rate increased to 4.0% from 3.9% in April, a significant barrier below which the jobless rate had previously maintained for 27 months.
“In the coming week key areas to watch include the US Fed interest rate decision, the rupee’s movement against the dollar, crude oil prices and commodity prices. Additionally, investments by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will remain under close observation," said Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.
Also Read: US yields jump as job growth surges, wage gains accelerate in May
Buy or sell stocks for Monday — June 10
Sumeet Bagadia has recommended these three stocks for Monday — Tech Mahindra Ltd, UltraTech Cement Ltd, and Dr Reddy's Laboratories Ltd.
Tech Mahindra Ltd
Tech Mahindra Ltd, a prominent player in the technology sector, has demonstrated resilience and has given a strong breakout above 1,320 levels. Currently stock is trading at 1,377.60 per share; the stock has recently broken above the 1,320 level, signalling robust strength. This positive sentiment is further reinforced as Tech Mahindra trades above its 20, 50, and 200-day moving averages, a clear indication of bullish momentum.
The stock faces minor resistance at 1,400 levels. Sustaining above this resistance could trigger additional upward momentum, paving the way for further gains. The Relative Strength Index (RSI) is presently at 66.45 and trending upwards, highlighting increased buying activity and further supporting the bullish outlook.
Given these technical indicators, Tech Mahindra presents a compelling investment opportunity. The combination of a strong bounce from support, a significant breakout, and favourable RSI readings makes it an attractive prospect for investors looking to capitalise on its upward trajectory.
Investors should be cautious and keep a watch on the stock if it falls below 1,320, as this could negate the positive outlook. A short-term target of 1,490 is achievable.
Also Read: Weekend Wrap: From United Breweries to Jindal Stainless, top market movers this week
UltraTech Cement Ltd
UltraTech Cement Ltd is currently trading at 10,463.15 levels, demonstrating a robust recovery from the support level of 9,960. This support level aligns closely with its short-term (20 Day) and medium-term (50 Day) EMA levels, reinforcing the stock's strength.
On the higher side, the stock faces a minor resistance near 10,530 levels. A successful breach of this resistance could trigger a significant upward movement, targeting 11,300 levels and potentially higher. This upward momentum is further supported by the Relative Strength Index (RSI), which is currently moving higher at 61.72, indicating growing bullish sentiment.
The stock's recovery from key EMA levels and the upward trajectory of the RSI signal a favourable outlook. Investors should monitor the 10530 resistance level closely. Surpassing this point would likely validate the bullish trend, providing a strong impetus for further gains.
In summary, UltraTech Cement's technical indicators suggest a promising potential for upward movement. The support at 9,960 and the resistance at 10,530 are critical levels to watch, with a breakout above 10,530 paving the way towards the target of 11,300 and above. Investors holding positions can maintain their outlook with optimism, supported by the positive momentum indicators.
Based on the above analysis we recommend buying UltraTech Cement at CMP of 10463.15 levels, It can also be added on dips near 10,200 levels for the targets of 11,300 with a stop loss of 9,960.
Also Read: Expert view: Nifty 50's potential upward move above 23,300 could lead towards 23,800, says Kapil Shah of Emkay Global
Dr Reddy's Laboratories Ltd
Dr Reddy's Laboratories is currently trading at 6061.30 levels, having displayed significant strength by breaking out of a falling trend line with robust volumes. This breakout signals bullish momentum in the stock. Notably, Dr Reddy's Laboratories is now trading above its key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMA levels, indicating sustained strength and a positive trend.
The momentum indicator RSI is also on an upward trajectory, currently positioned at 57.46 levels, which further supports the bullish outlook for the stock. The upward movement in RSI suggests increasing buying interest and momentum.
On the downside, Dr Reddy's Laboratories has a strong support level at 5,800, which aligns with its long-term (200 Day) EMA. This support level is crucial for maintaining the stock's bullish stance.
Given these technical indicators, Dr Reddy's Laboratories shows potential to move towards a target of 6,410 and above. The strong breakout, alignment above key moving averages, and positive RSI movement collectively suggest that the stock is poised for further gains. Investors holding the stock should consider maintaining their positions, capitalising on the upward momentum, while new investors might find current levels attractive for entry with an eye on the target of 6,410.
Based on the above analysis we recommend buying Dr Reddy's Laboratories at CMP of 6,061.30 levels, It can also be added on dips near 5,960 levels for the targets of 6,410 with a stop loss of 5,800.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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