In the previous session, Index resumed its up move after fifteen days of down run. The Nifty index opened a gap up. Post that the Nifty index gradually recovered all its losses. The index got stronger as the day progressed and closed with a net gain of 284 points. A bullish candle appeared on the daily chart. Hence, we recommend approaching the markets in a positive way. Use a trailing Stop loss method to protect your profit at higher levels.

Look at the below research report of ‘Stocks to Buy for – Wednesday, June 22, 2022’ before the market opens.

Aarti Industries Ltd.

NSE :AARTIIND  BSE :524208  Sector : Chemicals

We have posted a daily chart of AARTIIND. We can see that the price has formed a ‘Falling Wedge’.  It is a continuation pattern formed when price bounces between two downward sloping, converging trendlines. It is considered a bullish chart formation but can indicate both reversal and continuation patterns – depending on where it appears in the trend. Here this pattern has breakout and gives a signal to go up. Also, the price support line and RSI support line is making DIVERGENCE which is another indicator that stock will go bullish. Stock formed a Bullish candle on the chart and closed with a net gain of 2.12%.

The momentum on upside remains strong for AARTIIND. On the above chart, we have applied FIBONACCI projection, which is used to determine the price action, support and resistance levels. As it gives breakout of the falling wedge pattern hence we can expect it to reach a target of 760/785/817 levels which is 61.8%,76.4% and 100% of Fibonacci levels. On downside stop loss can be placed below 668 levels.