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Geopolitical tensions appear to be getting priced in, as the latest conflict developments failed to spark fresh selling. This was seen as a positive signal, encouraging market participants to step in gradually toward the close. Sentiment remains fragile, however, with hesitation still weighing on broader risk appetite.

Amid this, Raja Venkatraman recommends these stocks for trading.

Read this | Israel vs Iran could be worse for markets than Russia vs Ukraine. Here’s why.

QUICKHEAL: Buy above ₹380 and on dips to ₹355 | Stop loss: ₹345 | Targets: ₹425–440

GRAPHITE: Buy at CMP and on dips to ₹515 | Stop loss: ₹505 | Targets: ₹585–600

BEL: Buy above ₹404 and on dips to ₹393 | Stop loss: ₹388 | Targets: ₹435–445

Indian equity benchmarks opened the week on a strong footing, brushing aside geopolitical jitters from West Asia. On Monday, 16 June, the Sensex surged 677 points to close at 81,796.15, while the Nifty 50 advanced 227.90 points to end at 24,946.50, just shy of the 25,000 mark.

Despite heightened tensions following Israeli strikes on Iran, investors rotated into large-cap blue chips. IT, metals, realty, and oil & gas stocks led the rally, with all sectoral indices ending in the green, indicating broad-based buying interest. The broader markets also rebounded smartly after a cautious start.

Market sentiment stayed buoyant, helped by continued domestic institutional buying that absorbed foreign outflows. Retail investors and mutual fund inflows remained supportive, as long-term players appeared to use the global uncertainty to accumulate quality stocks.

After last week's rapid declines triggered by geopolitical tensions, markets tested support but didn’t break lower. Monday’s recovery confirms that buyers continue to defend key levels, even as momentum remains mixed.

In our previous outlook, we noted that while trends had weakened, they were heading into strong support zones. This played out on the charts—the median line has now been broken, opening the door to further downside unless bulls regain control.

Strong Call writing has shifted from 24,800 to 25,300, suggesting resistance at higher levels.

On the downside, meaningful Put writing at 24,900–24,700 may cushion sharp declines, for now.

Technically, the gap-down opening was filled, and prices have moved back above the short-term consolidation range. A decisive close above 25,000 (Nifty Spot) will be key to reigniting bullish momentum. On the hourly charts, however, selling pressure seems to be re-emerging, and the recovery so far appears hesitant.

Traders should monitor whether the index can build on Monday’s gains and break through 25,000 with conviction. Until then, expect choppy moves with a slight upward bias—tempered by caution.

For fresh short positions, a move below 24,500 on the Nifty would be key, as this level acts as immediate support based on Open Interest data. If the index breaks out of its 30-minute range on Tuesday, traders can consider directional trades, although broader trends remain tentative with potential resistance ahead.

While index trends remain uncertain, individual stocks continue to show strong momentum.

Read this | Escalation in Middle East may drive correction in overvalued Indian stocks, says Kotak's Gupta

P/E: 358.87

52-week high: ₹825.90

Volume: 729.81K

P/E: 23.21

52-week high: ₹623.40

Volume: 724.31K

P/E: 55.82

52-week high: ₹435.45 (corrected)

Volume: 724.46K

Also read | Five undervalued power stocks worth adding to your watchlist

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

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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