Best stock recommendations today: MarketSmith India's top picks for 19 June
Stock recommendation today: Discover MarketSmith India's expert top picks for Thursday, 19 June. Get insights into top-performing stocks and make informed investment decisions.
On Wednesday, the Nifty 50 declined 0.17%, closing near 24,812 amid global uncertainty and profit booking. Investor sentiment remained cautious due to escalating geopolitical tensions in the Middle East and the anticipation of the US Federal Reserve's policy announcement. Selling pressure in heavyweight sectors such as Metals, FMCG, Energy, and Realty offset gains seen in auto and private banking stocks. Although intraday recovery was supported by domestic buying, the overall market tone remained subdued, keeping the index in negative territory.
Two stock recommendations by MarketSmith India:
Avenue Supermarts (current price: ₹4,229)
Why it’s recommended: Expansion and store growth, operational efficiency, e-commerce expansion
Key metrics: P/E: 97.56 | 52-week high: ₹5,484.85 | Volume: ₹756.44 crore
Technical analysis: Bounce back from its 50-DMA after a few days of consolidation
Risk factors: Increased competition in the retail sector, vulnerability to supply chain disruptions, and regulatory risks
Buy at: ₹4,229
Target price: ₹4,850 in three months
Stop loss: ₹3,930
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BEML Ltd (current price: ₹1,907)
Why it’s recommended: Strategic position in defense and infrastructure, the government’s infrastructure push
Key metrics: P/E: 62.33 | 52-week high: ₹5,488 | Volume: ₹637.78 crore
Technical analysis: Possible trendline breakout
Risk factors: High dependency on government orders, working capital-intensive business
Buy at: ₹4,464
Target price: ₹4,950 in three months
Stop loss: ₹4,220
How Nifty 50 performed on 18 June
On Wednesday, the Nifty50 opened with a gap-down and traded in a volatile manner throughout the session. While the index attempted to recover and reclaim bullish momentum, selling pressure at higher levels led to profit booking, resulting in the formation of a bearish candle with an upper wick on the daily chart. Barring the Nifty Auto and the Bank Nifty, all major sectoral and broader market indices ended on a flat to negative note. As a result, market breadth deteriorated further, with the advance-decline ratio tilting in favour of decliners at 1:2.
From a technical standpoint, the Nifty 50 continues to exhibit volatile price action and has closed below its 21-DMA on the daily chart, indicating short-term weakness. The index has been consolidating within a well-defined range for the past five weeks, highlighting a lack of directional clarity. As of Wednesday, the daily relative strength index (RSI) remains flat, positioned around 51–52, while the MACD maintains a negative crossover. This technical setup reflects weakening momentum and suggests that cautious sentiment may prevail in the near term.
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According to O'Neil’s methodology of market direction, the Nifty reclaimed its recent high of 25,116. Hence, the market status has been upgraded to a Confirmed Uptrend as of 11 June 2024.
The index has been trading in a sideways range of 25,200-24,500 with a negative bias over the past six sessions. It has consistently failed to sustain above the psychological level of 25,000, reflecting a lack of bullish conviction. For a meaningful reversal to take hold, a decisive breakout above 25,000-25,200 is crucial, which could pave the way for an upward move toward 25,700-25,800. Conversely, continued failure to breach this range may lead to prolonged consolidation between 24,500 and 25,200, with strong support positioned at 24,500-24,400.
How Nifty Bank performed
On Wednesday, the Nifty Bank opened with a gap-down but witnessed a swift recovery in the initial hour of trade, eventually closing in positive territory at 55,828, 0.21% higher. The price action resulted in the formation of a small bullish candle on the daily chart. However, the price structure reflected a lower-high and lower-low, indicating lingering volatility and uncertainty. Meanwhile, the broader financial space remained subdued, with the FINNIFTY index declining 0.20% and forming a bearish candle, underscoring continued sectoral weakness.
From a technical perspective, the Nifty Bank has attempted to reclaim its 21-DMA amid the ongoing volatility observed over the past week. The relative strength index (RSI) remains flat, currently hovering around 53–54, indicating lackluster momentum. Furthermore, the MACD continues to exhibit a negative crossover on the daily chart, reinforcing the prevailing subdued sentiment and suggesting that the index may remain in a consolidation phase over the near term.
According to O’Neil’s methodology of market direction, the Nifty Bank has recently transitioned from an “Uptrend Under Pressure" to a bullish phase of a “Confirmed Uptrend".
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The index closed near its 21-DMA, indicating a transition toward a sideways trend in the short- to medium-term outlook. Immediate support is positioned around 55,000, while resistance is seen at 56,000, with a subsequent hurdle near 57,000. Recent price behaviour suggests continued range-bound movement between 55,000 and 57,000 in the near term. A decisive breakout on either side of this range will be crucial in establishing the next directional move.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Trade name: William O'Neil India Pvt. Ltd. (Sebi Registered Research Analyst Registration No.: INH000015543)
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.
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