Stocks to buy on June 20: IDFC Bank, RBL, IGL; check target prices

The markets experienced volatility and closed nearly unchanged amidst mixed signals. Starting flat, the Nifty fluctuated significantly throughout the day before settling around the 22,519 mark. 

While profit-taking was observed across most sectors, strength in banking and IT sectors mitigated overall losses. Broader indices, following days of strong performance, dipped by approximately 0.5 per cent to 1 per cent.

Rotational buying across key sectors is supporting a positive market sentiment, yet without clear conviction. 

Therefore, we advise continuing a strategy of 'buying on dips' in the index and placing emphasis on selective stock picks based on sectoral or thematic factors. Banking has reached new highs and is anticipated to sustain momentum, while renewed interest in IT is expected following recent consolidation.

 

IDFC First Bank | LTP: Rs 82.17 | Buy |Target: Rs 86.50 | Stop-loss: Rs 80

Banking stocks are witnessing decent traction and IDFC First Bank has witnessed a fresh breakout. It had been trading in a corrective phase for over 8 months while trading in a descending channel pattern and finally witnessed a breakout from the same with strong volumes.

Following price pattern and volume activity, we expect a gradual up move from hereon.

RBL Bank |LTP: Rs 266.11 |Buy |Target: Rs 285 |Stop-loss: Rs 257

RBL Bank has been in the recovery phase for the last year, after breakout from a reversal pattern (inverted head & shoulder) on the weekly chart.

It has formed a fresh pivot while holding above the support zone of short term moving average i.e. 20 WEMA and is likely to resume the uptrend soon. Traders can accumulate fresh in the mentioned range.

Indraprastha Gas Ltd |LTP: Rs 470.40 |Buy |Target: Rs 515| Stop-loss: Rs 450

IGL has registered a fresh breakout from the prolonged corrective phase, which continued for over three years. It shows a potential shift in trend from sideways to upwards. 

Technically, it has resulted in a breakout from a symmetrical triangle price pattern with a decent surge in volumes compliments bullish bias in price. The price pattern coupled with the buoyancy in the gas distribution space is adding to the

confirmation.

(Disclaimer: Ajit Mishra is SVP of research at Religare Broking Ltd. Views expressed are personal.)