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Stock market today: The Indian stock market closed the final trading session of June in the red, as investors booked profits after a strong four-day rally. Still, it marked the fourth straight month of gains, with the Nifty 50 rising 3.10% and the Sensex up 2.65% in June—taking their cumulative four-month gains to over 15%.

Notably, both indices have rebounded nearly 17.3% from their April lows, marking their strongest recovery in recent memory.

The Nifty 50 opened flat on Monday and faced profit booking at higher levels, trading with a negative bias and closing near the day’s low. This price action resulted in a bearish candle on the daily chart. Despite the weakness, the index managed to hold above the 25,500 mark.

Sectoral performance was mixed—PSU Banks, Pharma, and IT closed in the green, while Private Banks, Realty, Auto, FMCG, and Metals ended in the red. Broader market indices outperformed, supporting positive market breadth, with the advance-decline ratio at 3:2.

Technically, the Nifty continues to trend above all key moving averages across timeframes, affirming its strong bullish structure. The recent breakouts on both daily and weekly charts strengthen the positive outlook. Momentum indicators support this view: the RSI is trending upwards around 63–64, and the daily MACD has confirmed a positive crossover, signalling continued near-term strength.

According to O’Neil’s methodology of market direction, the Nifty reclaimed its recent high of 25,116, upgrading the market status to a Confirmed Uptrend as of 11 June 2024.

While profit booking was seen on Monday, broader sentiment remains positive. However, near-term upside may be limited this week. If momentum holds, the index could move toward 25,700–25,800, with potential to test 26,000. On the downside, immediate support lies at 25,500, with stronger support at 25,200.

The Nifty Bank index declined 0.23% on Monday after a volatile session. Despite hitting a fresh intraday all-time high, the index reversed and closed lower due to profit booking, primarily in heavyweight private banks. PSU banks, however, posted gains. The broader FINNIFTY index underperformed, closing down 0.62%.

Technically, Nifty Bank continues to hold above all key moving averages across timeframes, reaffirming the strength of its bullish trend. It formed a small bearish candle on the daily chart but maintained a 'higher-high, higher-low' structure, suggesting underlying resilience.

Momentum indicators remain supportive: the daily RSI is around 65 in bullish territory, and the MACD has posted a positive crossover. The weekly chart also maintains a bullish setup, with both RSI and MACD pointing upward, supporting a strong medium-term outlook.

Per O’Neil’s model, Nifty Bank has recently transitioned from an Uptrend Under Pressure to a Confirmed Uptrend phase.

Despite the recent pullback, sentiment remains positive. A sustained hold above 57,000 could push the index toward 58,500–59,000. On the downside, immediate support is seen at 56,500, with a stronger support zone near 56,000.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, developed by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

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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.

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