Stock market today: Trade setup for Nifty 50, five stocks to buy or sell on Thursday - June 20

Stock market today: On Wednesday's trading session, the domestic benchmark indices, Nifty 50 and Sensex, reached fresh record highs of 23,664 and 77,851.63, respectively, but the Nifty 50 failed to maintain its gains, closing in the red as profit-booking set in at higher levels.

Broader markets also lagged benchmarks, with the Nifty Midcap 50 down 0.95% and the Nifty Smallcap Index down 0.46%.

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However, according to market analysts, the significant positive takeaway was that short covering and value buying propelled Bank Nifty, which completely outperformed the benchmark Nifty 50 and, more crucially, scaled a new all-time high of 5,1957.

According to Vinod Nair, Head of Research at Geojit Financial Services, the domestic market has begun on a positive note, owing to an earlier and more accurate monsoon projection. However, due to the current slow pace of the monsoon, the market is taking a break. Meanwhile, the banking sector is outperforming, despite being a laggard year-to-date, thanks to a rebound in FII inflows as the US 10-year yield continues to fall.

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Trade setup for Thursday

According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, Despite Wednesday's profit-booking, the trading theme revolves around markets increasing bets into the narrative that a soft landing in the US is underway.

Nifty 50's immediate goal post seen at its psychological 23,750 mark and then aggressive targets placed at 24,000 mark. The line in the sand is at Nifty 50's make-or-break support at 23,350 mark. Nifty 50's 200 DMA is placed at 21,287 mark, explained Tapse. 

Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on June 20

Buy or sell stock ideas by experts

Stock market gurus Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, advised five buy-or-sell stocks for today.

Sumeet Bagadia's stocks to buy today

Buy State Bank of India (SBI) in cash at ₹852.60; Stop Loss at ₹828; Target Price at ₹905

State Bank of India is currently positioned at a crucial juncture in its trading dynamics. With a robust support base at 828 levels, near its 20-day Exponential Moving Average (EMA), the stock stands resilient. Trading at approximately 852.60 levels, SBIN exhibits strength by maintaining levels above key moving averages.

The charts unveil a minor resistance barrier at 860 levels, a threshold the stock needs to surpass to pave the way for an upward trajectory. A successful breach of this resistance can potentially propel SBI towards its target price of 905 and beyond. The Relative Strength Index (RSI) at a comfortable 57.18 further bolsters the case for strength in the stock.

Investors and traders alike should closely monitor SBI's performance around the noted levels, as a breakout from the resistance can signify a bullish phase, offering potential opportunities for those eyeing upward movements in the stock.

Based on the above technical analysis we recommend buying SBI at CMP of ₹852.60 with a Stop Loss of ₹828 for the target price of ₹905.

Buy Infosys in cash at ₹1,511.35; Stop Loss at ₹1,475; Target Price at ₹1,590

Infosys, currently trading at ₹1,511.35, has recently broken out above ₹1,505 and formed a bullish candle on the daily chart. The immediate support is near the ₹1,475 level which is also close to its short term (20 Day) and medium term (50 Day0 EMA levels, and the current price is exhibiting strong bullish momentum, expected to continue towards the ₹1,590 level.

Moreover, Infosys is trading above key Exponential Moving Averages (EMAs), including the 20-day and 50-day EMAs, indicating robust bullish momentum and suggesting potential for further upward price movement. The Relative Strength Index (RSI) is presently at 60.22, showing an upward trajectory and indicating increasing buying momentum. These technical indicators collectively suggest that Infosys may have the potential to reach a target price of ₹1,590 in the near term.

To manage risk effectively, it is advisable to set a stop-loss at ₹1,475 to safeguard the investment in the event of an unexpected market turn. A prudent strategy would be to consider buying on dips at levels of ₹1,505.

Overall, considering the technical analysis and current market conditions, Infosys presents a promising buying opportunity for those aiming for a ₹1,590 price target, provided that prudent risk management measures are in place.

Also Read: Stock market today: Nifty 50 snaps 5-day winning streak on profit booking at higher levels

Ganesh Dongre's shares to buy today

Buy  Kotak Mahindra Bank at ₹1,744; Stoploss at ₹1,720; Target Price at 1,790

At ₹1,720, the stock found a substantial support level, marking a crucial juncture in its recent trading. Presently, at ₹1,744, the stock has demonstrated a definitive reversal in price action, suggesting a potential continuation of its upward momentum. Traders keen on seizing this opportunity could consider buying and holding the stock, setting a prudent stop loss at ₹1,720. The anticipated target for this trade is ₹1,790, representing the next significant resistance level. This strategy positions traders favourably to capitalise on the stock's anticipated rally in the weeks ahead.

Buy Adani Ports and Special Economic Zone Ltd at ₹1,450; Stoploss at ₹1,420, and Target Price at ₹1,490

In the recent short-term trend analysis of the stock, a notable bullish reversal pattern has emerged. This technical pattern suggests that there could be a temporary retracement in the stock's price, possibly to around ₹1,490. Currently, the stock is holding a crucial support level at ₹1,420.

Given this scenario, there is potential for the stock to rebound towards the ₹1,490 level in the near future. Traders are advised to consider taking a long position, with a strategic stop loss set at ₹1,420 to manage risk effectively. The target price for this trade is ₹1,490, reflecting the anticipated upward movement based on the identified technical signals.

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Buy Carborundum Universal Ltd at ₹1,825;  Stoploss at ₹1,800; Target Price at ₹1,855

The stock has consistently found strong support around ₹1,800, which is encouraging for its current trajectory. Recently, it has shown a promising reversal pattern near the ₹1,825 mark, suggesting potential for further upward movement. There's a possibility that the stock could continue its rally towards the next resistance level at ₹1,855. Traders might consider buying and holding this stock, using a prudent stop loss at ₹1,800 to mitigate risks. The target price for this trade is ₹1,855, with expectations set for developments over the upcoming weeks.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.