Sumeet Bagadia’s Top 3 Stock Picks for Tuesday: Bajaj Finserv, Reliance, Tata Steel – June 18

In recent trading, the broader market indices have outperformed, with the Nifty Midcap 100 rising by 1.05% and the Nifty SmallCap 100 gaining 0.8%. Market volatility, measured by the India VIX, dropped by 4.93% on Friday.

Geojit Financial’s Insight

Vinod Nair, Head of Research at Geojit Financial Services, pointed out a temporary slowdown in market momentum. This is due to a lack of new triggers following the US Fed’s cautious outlook, which has lowered expectations for an immediate rate cut. Investors are now looking forward to the upcoming union budget, which might focus on welfare initiatives, potentially boosting consumer-driven stocks.

Stock Picks for Tuesday, 18th June

For the next trading session on Tuesday, Sumeet Bagadia from Choice Broking recommends the following three stocks: Bajaj Finserv, Reliance Industries, and Tata Steel.

Bajaj Finserv (BAJAJFINSV)

Current Price: ₹1,591.75

Technical Overview:

• Bajaj Finserv has shown strong performance, trading above all key moving averages: 20-day, 50-day, and 200-day EMAs.
• It has broken past a key level of ₹1,585 and stayed above it for a week, which is a positive sign.
• The Relative Strength Index (RSI) is above 53.61, indicating strong market sentiment and growing buying interest.

Recommendation:

• Buy at ₹1,591.75.
• Target: ₹1,675.
• Stop Loss: ₹1,555.

Reliance Industries (RELIANCE)

Current Price: ₹2,955.10

Technical Overview:

• Reliance Industries has formed a bullish Engulfing pattern on the daily chart, suggesting a potential reversal to bullish sentiment after a period of consolidation.
• It has a solid support level at ₹2,895, close to its 50-day EMA.
• The stock is trading above its 20-day, 50-day, and 200-day EMAs, which supports a bullish outlook.
• The RSI is at 55.30, showing increasing buying interest.

Recommendation:

• Buy at ₹2,955.10.
• Target: ₹3,075.
• Stop Loss: ₹2,895.

Tata Steel (TATASTEEL)

Current Price: ₹183.15

Technical Overview:

• Tata Steel has shown strong technical strength with a breakout above the ₹175 level, indicating bullish momentum.
• It is trading above its 20-day, 50-day, and 200-day EMAs, reinforcing positive sentiment.
• The ₹175 level provides strong support against pullbacks.
• If it sustains above the minor resistance at ₹185, it is likely to target ₹198 and higher.
• The RSI is at 62.80, reflecting strong buying interest.

Recommendation:

• Buy at ₹183.15.
• Can also buy on dips at ₹180.
• Target: ₹198.
• Stop Loss: ₹175.