The steep gap-down on Friday not only erased early-week gains but also dragged the index below the psychological 25,000 mark. Broader market indices also ended lower, reflecting broad-based weakness.
Two stock recommendations by MarketSmith India:
Buy: FDC Ltd. (current price: ₹475.85)
- Why FDC is recommended: Strong domestic brand presence, and focused R&D with controlled manufacturing
- Key metrics: P/E: 28.12, 52-week high: ₹ 658.85, volume: ₹15.80 crore
- Technical analysis: Gave trendline breakout
- Risk factors: Competition and market forces, regulatory environment and pricing pressures, ESG and operational risks
- Buy at: ₹ 475.85
- Target price: ₹ 550 in three months
- Stop loss: ₹ 450
Also Read: Escalating Israel-Iran conflict to keep markets on boil in near term
Buy: Krishna Institute of Medical Sciences Ltd (current price: ₹680)
- Why Krishna Institute Of Medical Sciences is recommended: Strong regional presence and brand, capacity expansion through acquisitions and greenfield projects
- Key metrics: P/E: 65.08, 52-week high: ₹ 708, volume: ₹ 54.00 crore
- Technical analysis: Possible trendline breakout
- Risk factors: Rising operational costs and margin pressure, geographical concentration
- Buy at: ₹ 680
- Target price: ₹ 800 in three months
- Stop loss: ₹ 629
How the Nifty performed on 13 June
On Friday, Nifty50 opened with a sharp gap-down but found support near 24,500–24,400, leading to a partial intraday recovery and settling at 24,718.60, down 0.68%.
Barring Nifty IT and realty, all major sectoral and broader market indices ended in the red. The advance-decline ratio weakened to 1:2, indicating broad-based profit booking. On a weekly basis, Nifty declined approximately 1.14% and formed a bearish candlestick, reflecting volatility and sustained selling pressure throughout the week.
From a technical perspective, Nifty50 has slipped below its 21-day moving average (DMA), signalling short-term weakness. However, the index continues to trade above its key long-term moving averages (50-, 100-, and 200-DMA), suggesting that the broader trend remains structurally intact.
On the daily chart, the relative strength index (RSI) is exhibiting a downward slope, accompanied by a negative MACD crossover, reinforcing the near-term bearish bias. Meanwhile, the weekly RSI has remained range-bound over the past four weeks, currently positioned around 58, supported by a positive MACD setup.
According to O’Neil’s methodology of market direction, Nifty has reclaimed its recent high of 25,116. Hence, the market status has been upgraded to a Confirmed Uptrend as of June 11th, 2024.
The index maintained a negative bias throughout the week and closed below 25,000 on a weekly basis. However, it managed to hold above the key support zone of 24,500–24,400 and staged a partial recovery during Friday’s session following a sharp gap-down opening.
Going forward, 24,500–24,400 will act as a crucial support area, and a decisive breach below this range could trigger further downward movement toward 24,000–23,800. On the upside, the index is expected to face strong resistance near 25,000, followed by 25,200.
Also read: The capital goods sector gets a power-up, its weight rises in Nifty
How did Nifty Bank perform?
This key sectoral index recorded a fresh all-time high of 57,049. However, it faced sustained profit booking at higher levels through the latter part of the week. As a result, it formed a shaved-head bearish candle on the weekly chart, registering a decline of 1.86%.
Similarly, the FINNIFTY index also declined 1.85% for the week, underscoring continued weakness in the broader financial segment. On Friday, all index constituents closed in negative territory, with notable pressure from heavyweights such as HDFC Bank, SBI, and ICICI Bank.
From a technical standpoint, the index has breached its 21-DMA and continued to trade below it on Friday, signaling short-term weakness. Additionally, it broke below the lower boundary of the rising wedge pattern on the daily chart and closed beneath it, reinforcing the bearish bias. The relative strength index (RSI) is trending downward and currently hovers around 51, accompanied by a negative MACD crossover on the daily timeframe. On the weekly chart, the RSI is also weakening, though the MACD maintains a positive crossover, reflecting a mixed outlook for this key sectoral index.
Also Read: Tata Communications shifts focus: Can it transform into a digital powerhouse?
According to O’Neil’s methodology of market direction, Bank Nifty has recently transitioned from an “Uptrend Under Pressure” to a bullish phase of a “Confirmed Uptrend.”
The index is likely to remain range-bound with a negative bias in the near term. Immediate support is seen at 55,000, with the next key level at 54,500. On the upside, the index faces resistance around 56,000, followed by a stronger hurdle near 57,000. A decisive move beyond either boundary may determine the next directional trend.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market.
Trade name: William O’Neil India Pvt. Ltd. (Sebi Registered Research Analyst Registration No.: INH000015543)”
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
