Stocks to buy or sell: The Indian stock market remained volatile on Thursday, 11 June, and ended lower amid weak global cues, extending losses for the second consecutive session.
The Nifty 50 closed 0.23% lower at 23,161.60, with as many as 32 components in the red. The index is down 0.65% for the week, looking set to extend losses for the third consecutive week.
“Investor sentiment remained fragile amid renewed escalation in the Middle East following fresh developments involving the US and Iran, which pushed crude oil prices closer to the $95 per barrel mark. Adding to the pressure, stronger-than-expected US inflation data raised concerns that interest rates may remain elevated for longer, resulting in weakness across global equity markets,” Ajit Mishra, SVP of Research at Religare Broking, noted.
Persistent foreign institutional outflows and a weaker rupee further weighed on sentiment.
Mishra pointed out that the market continues to witness selling pressure on every rise; however, rotational buying in select heavyweight stocks is helping contain the pace of the decline.
He believes a decisive break below 23,000 could trigger the next leg of the corrective phase, while the upside is likely to remain capped near 23,500.
“Profit booking in the broader indices, which had been outperforming earlier, is adding to participants’ concerns. Given the prevailing uncertainty and lack of strong directional cues, we continue to advocate a cautious approach with a focus on stock-specific opportunities,” said Mishra.
Mishra suggests short-term strategies for the following counters. Take a look:
Biocon | Previous close: ₹415.95 | Buy | Target price: ₹445 | Stop loss: ₹402
Mishra underscored that has been displaying resilience following its recent rally, during which it broke out of a prolonged consolidation range, signalling a potential continuation of the uptrend.
The stock is currently forming a buying pivot near the breakout neckline after a mild retest, indicating sustained buying interest at lower levels.
Furthermore, the broader pharma sector continues to exhibit notable strength, providing additional support to the positive outlook.
“Considering the favourable risk-reward setup, traders may consider accumulating the stock within the specified range,” said Mishra.
Fortis Healthcare | Previous close: ₹989 | Buy | Target price: ₹1,065 | Stop loss: ₹950
We are witnessing notable strength in the pharma and healthcare space, and is participating in this positive trend.
The stock has registered a decisive breakout above its previous swing high, supported by a significant increase in trading volumes, indicating strengthening bullish momentum and potential trend continuation.
It continues to trade comfortably above its key moving averages, reaffirming a well-established uptrend across multiple timeframes.
Additionally, momentum indicators remain supportive, reinforcing the positive outlook.
Bharat Electronics (BEL) | Previous close: ₹404 | Sell Future | Target price: ₹392 | Stop loss: ₹410
Mishra pointed out that BEL has broken down from an upward-sloping channel that had remained intact for nearly a year, signalling a potential change in trend.
The stock has also fallen below its key long-term moving average, the 200-day EMA, further reinforcing the shift from a bullish to a bearish outlook.
Mishra underscored that BEL continues to trade below both the channel breakdown level and the 200 EMA, while repeatedly experiencing selling pressure on pullbacks, suggesting the prevailing weakness may persist.
“Given the current technical setup, the stock could witness further downside momentum in the near term. Traders may consider initiating short positions through futures within the specified range,” said Mishra.
Disclaimer: This story is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.