News

This is a Mint Premium article gifted to you. Subscribe to enjoy similar stories.

On Monday, the Nifty 50 advanced 0.92%, supported by a technical rebound and robust domestic institutional buying. The rally was led by Nifty IT, Financials, and Energy, with notable contributions from heavyweights like HDFC Bank, ICICI Bank, Reliance Industries, and Infosys. Investor sentiment improved on the back of stabilizing crude oil prices below $80 per barrel and easing geopolitical tensions. The index recovered recent losses, aided by short covering and renewed buying interest, and closed near 24,950 with broad-based market participation.

Cipla Ltd (current price: 1,527)

Why it’s recommended: Strong market position, diversified product portfolio, operational efficiency, and positive industry outlook

Key metrics: P/E: 22.98 | 52-week high: ₹ 1,702.05 | Volume: ₹407.39 crore

Technical analysis: Given trendline breakout

Risk factors: Regulatory and compliance risks, economic sensitivity, management and governance risks

Buy at: ₹1,527

Target price: ₹1,680 in three months

Stop loss: ₹1,458

Apollo Hospitals Enterprise Ltd (current price: ₹7,114)

Why it’s recommended: Market leadership and brand equity, diversified healthcare ecosystem

Key metrics: P/E: 417.14 | 52-week high: ₹6,545 | Volume: ₹68.32 crore

Technical analysis: Possible trendline breakout

Risk factors: High capital expenditure

Buy at: ₹7,114

Target price: ₹7,900 in three months

Stop loss: ₹6,770

On Monday, the Nifty 50 opened on a mildly positive note and maintained an upward trajectory throughout the session. The index formed a bullish candlestick on the daily chart, closing near the day's high at 24,946, reflecting sustained buying interest. All sectoral and broader market indices ended in positive territory, indicating broad-based strength. However, the advance-decline ratio remained neutral, suggesting that gains were concentrated in select heavyweights rather than being uniformly distributed across the market.

From a technical standpoint, the Nifty 50 reclaimed its 21-day moving average (DMA) and closed above it, reaffirming its position above all its key moving averages. This development indicates that the broader structural trend remains intact. On the daily chart, the Relative Strength Index (RSI) has turned upward, currently hovering around 55–56, signaling improving momentum. However, the moving average convergence divergence (MACD) continues to exhibit a negative crossover, suggesting that short-term caution remains warranted despite the improving price action.

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

On Monday, the index staged a recovery and closed with a positive bias. However, it continues to trade below 25,000. Going forward, a sustained move above the critical resistance zone of 25,000–25,200 is essential to confirm a bullish reversal. A breakout above 25,200 could pave the way for further upside movement toward 25,700–25,800. Conversely, failure to surpass and hold above 25,200 may result in continued range-bound and volatile movement between 24,500 and 25,200. On the downside, strong support is positioned at 24,500–24,400.

On Monday, this key sectoral index staged a recovery, advancing 0.75% and forming a bullish candlestick on the daily chart, signalling renewed buying interest. The FINNIFTY index also followed suit, gaining 0.83% and closing with a bullish candle. The rebound was primarily led by strength in private sector banks, with HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Axis Bank contributing significantly to the day’s gains.

From a technical standpoint, the index has reclaimed its 21-DMA and is now trading above all its key moving averages, suggesting an improving trend structure. However, it remains vulnerable to near-term volatility and is not yet in a fully confirmed bullish setup. The RSI has turned positive, currently hovering around 55–56, indicating a gradual pickup in momentum. Meanwhile, the MACD continues to display a negative crossover and a downward slope, signalling that caution remains warranted until further confirmation emerges.

According to O’Neil’s methodology of market direction, the Nifty Bank has recently transitioned from an “Uptrend Under Pressure" to a bullish phase of a “Confirmed Uptrend".

The index has reclaimed its 21-DMA, indicating a potential shift toward a positive bias in the near term. Immediate support is established at 55,000, while resistance is seen around 56,000, followed by 57,000. The recent price action suggests that the Nifty Bank may continue to consolidate within 55,000–57,000 in the short term. A decisive breakout on either side of this range will likely set the tone for the next directional move.

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.

Download the Mint app and read premium stories

Log in to our website to save your bookmarks. It'll just take a moment.

You are just one step away from creating your watchlist!

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.

Your session has expired, please login again.

You are now subscribed to our newsletters. In case you can’t find any email from our side, please check the spam folder.

This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp