Market Trading Guide: Parag Milk and One More Stock to Watch This Wednesday!
In the context of ongoing market fluctuations, Indian benchmark indices exhibited significant volatility during the weekly Nifty expiry on June 2, ultimately closing near the pivotal 23,500 mark. Market analysts highlighted a revival in buying activity emerging from a critical support zone situated between 23,200 and 23,000. This region aligns with the lower band of the bullish gap formed on April 8, recent consolidation patterns, and the 61.8% retracement level of the preceding pullback from 22,182 to 24,601, suggesting the potential for an upward trajectory in the near term.
Investors are encouraged to consider Chennai Petroleum Corporation as a promising buy. Currently trading at Rs 1,142, the stock has successfully breached the key resistance zone of 1,120–1,140, bolstered by a robust bullish candle and increased trading volumes, indicative of heightened buying interest. Furthermore, the company stands above all major moving averages, with short-, medium-, and long-term exponential moving averages (EMAs) positively aligned, reflecting a well-entrenched uptrend. A stop-loss is recommended at Rs 1,080, with a target price set at Rs 1,258, positioning it as a strategic investment opportunity.
Additionally, Parag Milk Foods also demonstrates favorable investment potential. Priced at Rs 241, the stock has made a notable breakout past the critical resistance zone of 236–240, characterized by a sharp bullish candle accompanied by a significant uptick in trading volumes. This signals a resurgence in buyer engagement and momentum. Presently, Parag Milk is trading above key moving averages, with both short- and medium-term EMAs indicating a positive alignment, while the long-term trend shows encouraging signs of advancement. For this stock, a stop-loss is recommended at Rs 224, with an ambitious target price of Rs 270, making it another viable option for investors seeking growth.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)