Buy or sell stocks: The Indian stock market gave up most of its intraday gains on Thursday, June 26, as profit booking in the second half of the session dragged the benchmark indices off their highs. Trading remained shut on Friday, June 27, due to the Muharram holiday.
The BSE Sensex swung nearly 700 points from its day’s peak of 77,803.18 before settling at 77,100.47, up 109 points, or 0.14%, from its previous close of 76,991.22. The NSE Nifty 50 also pared most of its gains to end the session nearly unchanged.
The benchmarks had climbed about 1% during the day, supported by easing crude oil prices, which remained below the $75-a-barrel mark, and a stronger rupee. However, investors locked in profits ahead of the long weekend, limiting the market’s upside.
Despite a sharp easing in geopolitical tensions, a more than 30% decline in crude oil prices from recent highs and a stable rupee, domestic equities have struggled to sustain momentum. Market participants remain cautious amid uncertainty over the progress and impact of the monsoon in the months ahead.
Nifty Outlook
Sumeet Bagadia, Executive Director at Choice Broking, highlighted that from a technical perspective, the index has successfully sustained above the 24,000 psychological mark, indicating that buyers continue to defend lower levels aggressively.
“Technically, the 23,850-23,800 zone is expected to act as immediate support, where buying interest has consistently emerged in recent sessions. On the upside, the index may face immediate resistance in the 24,200-24,250 zone, which remains a key supply area due to previous resistance and options positioning. A decisive and sustained move above this zone could strengthen bullish momentum and pave the way for an extension towards 24,500 in the near term,” he noted.
Overall, the session was characterised by selective large-cap buying, resilience above key support levels, and improving sentiment driven by softer crude prices and supportive domestic cues. While the broader undertone has turned cautiously bullish, traders should continue to monitor the 24,200-24,250 resistance band, as a convincing breakout above this region will be required to confirm the next leg of the upmove in the benchmark index, stated the expert.
Bank Nifty Outlook
According to the Choice expert, from a technical perspective, the near-term structure remains positive, with Bank Nifty sustaining above its key short-term support levels and trading close to its recent swing highs. However, unlike the previous session, the index is not yet confirming a fresh higher-high, higher-low formation on the hourly chart.
Instead, the current price action suggests a phase of consolidation and base-building, with traders awaiting a decisive breakout for directional confirmation. Momentum indicators have stabilised, indicating that the recent corrective pressure has eased and dips continue to attract buying interest, explained Bagadia.
“Technically, the 57,600-57,700 zone is expected to act as immediate support, where buying interest is likely to emerge on declines. On the upside, the 58,700-58,800 zone remains the immediate resistance band. A sustained move above this region would validate a bullish breakout and could pave the way for further upside towards 59,000 levels in the near term,” he predicted.
Considering the prevailing price structure, improving sentiment in banking counters, and the index’s ability to hold above crucial support levels, the overall bias remains bullish. However, traders should closely monitor the 58,700-58,800 resistance zone, as only a decisive breakout above this range would confirm renewed momentum and signal the beginning of the next leg of the up move in Bank Nifty, suggested Bagadia.
Sumeet Bagadia’s stock recommendations today
Regarding stocks to buy on Monday, 29 June, Sumeet Bagadia recommended these three buy-or-sell stocks: Dr Reddy’s Labs, M&M, and Tata Consumer.
Buy L&T in cash at 1,350; SL at 1,287; TGT at 1,421/1,450.
Dr. Reddy’s Laboratories has witnessed a decisive breakout above its long-term descending trendline, indicating a potential change in trend and renewed bullish momentum. The stock has registered five consecutive weekly gains and ended the week with a strong rise of nearly 6.16%, reflecting sustained buying interest.
Technically, the stock is maintaining a higher-high and higher-low structure, which is a positive sign for trend continuation.
The RSI is trading around 69, highlighting strong momentum without any major signs of weakness. Additionally, the 20-day EMA has crossed above the 50-day EMA, adding further bullish confirmation. A move towards ₹1,421, which coincides with the previous all-time high, looks likely. A breakout above this level could extend the rally towards ₹1,450. The stop-loss should be maintained at ₹1,287, which is placed near the 50-day EMA support.
Buy M&M in Cash at 3,182; SL at 3025; TGT at 3400
Mahindra & Mahindra appears to be emerging from a corrective phase after recently forming a base around the ₹2,900 zone, which coincides with a potential double-bottom formation. The stock has rebounded sharply from these levels, indicating renewed buying interest. During the current week, the stock made a low near ₹3,025 and closed at ₹3,182, reinforcing the importance of the ₹3,025 zone as a key support area. This region also aligns with the weekly 100-day EMA, from where the stock has shown a healthy bounce.
On the daily chart, M&M continues to trade below its 100-day and 200-day EMAs, suggesting that a complete trend reversal is yet to be confirmed. However, the stock is now approaching its short-term moving averages and is poised for further upside if it sustains above support levels. Holding above ₹3,025 could pave the way for a recovery towards ₹3,400 in the coming sessions.
Buy TATACONSUM in Cash at 1,131; SL at 1,090; TGT at 1,212
Tata Consumer Products has been consolidating within a narrow range over the last few weeks and is displaying signs of base formation near its key support levels. The stock has consistently held its weekly 100-day EMA, indicating that long-term buyers continue to defend lower levels. On the upside, the ₹1,135 zone has emerged as a significant resistance over the past three weeks and also coincides with the 20-day EMA, making it a crucial breakout level.
In the latest trading session, the stock gained around 3% and closed at ₹1,131, ending just below this resistance zone. The price action suggests that buying momentum is gradually improving and the stock appears well positioned for an upward move. A sustained breakout above ₹1,135 could trigger fresh momentum and lead to the next upside target of ₹1,212. The recent swing low of ₹1,090, which also aligns with the weekly 100-day EMA, should be maintained as the stop-loss.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
