Buy & Sell Ideas for June 25; top stock picks by Jatin Gedia of ShareKhan

Dabur has been consolidating since the last two weeks after a sharp run up. It has now reached the 20 day moving average (590) and witnessed buying interest

Dabur

Dabur has been consolidating since the last two weeks after a sharp run up. It has now reached the 20 day moving average (Rs 590) and witnessed buying interest. It has formed a Bullish candle stick pattern on the daily charts.

The hourly momentum indicator has triggered a positive crossover which is a buy signal. Thus, there is a high probability that the stock can witness buying interest over the week. We expect the stock to target levels of Rs 628 – Rs 639. A stoploss of Rs 585 should be maintained for the long positions.

Tata Consumer

Tata Consumer has formed an Engulfing Bull Candle stick pattern on the daily charts at the 61.82 per cent fibonacci retracement level of the previous rise.

The daily momentum indicator has reached the equilibrium line suggesting that the fall is complete and can start a new cycle on the upside. We expect the stock to target levels of Rs 1,160 – Rs 1,178. Stoploss of Rs 1,075 should be maintained for the longs.

Private Banks lead: Shares of private lenders which were seen underperforming state-run peers seem to be back on investors' radar. Banking shares hold significant weightage in the benchmark indices - the Sensex and the Nifty - hence a sharp movement in this shares, tends to impact the indices accordingly.

On Tuesday, Axis Bank and HDFC Bank rallied nearly 3 per cent each to Rs 1,267 and Rs 1,717, respectively. ICIIC Bank rallied over 2 per cent. SBI and Kotak Bank were up around a per cent each.

FIIs up long bets in F&O:Following finalization of the government at the Centre, foreign institutional investors have covered their short positions, and steadily build long positions in the index futures. As of June 24, FIIs net long in index futures rose to 1.44 it’s highest in more than two months. FIIs held 59.08 per cent net longs in index futures. 

FIIs have been net buyers in index futures in the last seven straight trading sessions. FIIs have added around 1.83 lakh across index futures, which include Nifty, Bank Nifty and others.

Outlook:Technically, the NSE Nifty seems on course to test the super trend line resistance on the daily chart at 23,850-odd levels; above which the index can extend the rally beyond 24,000-mark.

The BSE Sensex is closing in on a crucial Fibonacci resistance at 78,150 levels. The index will need to cross this, in order to open the doors for further upside in the year ahead.