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On Monday, 16 June, the Nifty 50 ended the session 227.90 points higher, up 0.92%, to close at 24,946.50, marking a strong rebound and reflecting confidence in India’s economic stability. The BSE Sensex also registered gains, rising 677.55 points or 0.84%, to end at 81,796.15. Despite initial weakness, the Nifty Bank managed to close higher by 417.55 points or 0.75%, at 55,944.90.

Muthoot Finance Ltd (MUTHOOTFIN)-current price: ₹2,633.30

Why it’s recommended: Muthoot Finance has delivered a clear breakout, pushing to a new lifetime high on strong momentum. On the 45-minute chart, the stock has completed a symmetrical triangle breakout, projecting an upside target around ₹2,700+. This pattern typically indicates consolidation followed by trend continuation, which aligns with the broader bullish structure. Price action remains firm with strong candles on both intraday and daily charts. RSI is near 70, reflecting strong momentum, and MACD is in a bullish crossover. The stock is trading well above its key moving averages, confirming trend strength across timeframes.

Key metrics: Resistance level: ₹2,694 (short-term target) | Support level: ₹2,590 (pattern invalidation level)

Pattern: Symmetrical triangle breakout on 45-minute chart; all-time high breakout on daily chart

RSI: ~70, rising, indicating solid bullish momentum

Technical analysis: Triangle breakout adds to the bullish continuation outlook. Price trading above all key moving averages with bullish MACD and no negative divergence. Volume on breakout candles supports upward follow-through.

Risk factors: The RSI is near overbought territory, so short-term consolidation or a dip is possible. If the price falls below ₹2,590, it would invalidate the breakout pattern and may lead to profit booking. Watch for sustained volume and follow through above breakout levels to confirm the move.

Buy at: ₹2,633.30

Target price: ₹2,694

Stop loss: ₹2,590

Bharat Electronics Ltd (BEL)-current price: ₹403.85

Why it’s recommended: BEL has made a new lifetime high backed by strong volume, signalling sustained bullish interest. On lower time frames, the stock has completed a rectangle breakout, with a projected target of ₹425+. This consolidation breakout within an uptrend suggests a continuation move. With momentum on its side and a clearly defined risk level, taking a long trade with a small stop loss offers a favourable risk-reward setup. The RSI is strong but not overbought, and the MACD is in buy mode, confirming bullish momentum.

Key metrics: Resistance level: ₹419– ₹422 (short-term target range) | Support level: ₹397 (pattern invalidation level)

Pattern: Rectangle breakout on lower time frame; new lifetime high on daily chart

RSI: ~67, rising, showing healthy momentum

Technical analysis: The stock is trading well above its key moving averages, showing strong trend alignment. Breakout with volume on both daily and intraday charts reinforces the move. MACD remains positive, and the breakout level has been successfully retested on shorter time frames.

Risk factors: A drop below ₹397 could invalidate the breakout and trigger short-term profit booking. As the stock is at all-time highs, any market-wide volatility may lead to sudden pullbacks. Trade should be monitored closely for sustained momentum.

Buy at: ₹403.85

Target price: ₹419– ₹422

Stop loss: ₹397

Max Healthcare Institute Ltd (MAXHEALTH)-current price: ₹1,246.90

Why it’s recommended: The stock continues to maintain a strong uptrend with a well-formed structure of higher highs and higher lows. Technical indicators are supportive: RSI is at 67, indicating strong yet sustainable momentum, and the MACD is firmly positive, showing continued buying strength. On the weekly chart, RSI has broken out from an inverted Head & Shoulders pattern — a rare and bullish signal, suggesting a deeper underlying momentum shift. This convergence of signals across multiple time frames indicates the potential for a sustained move upward in the short term.

Key metrics: Resistance level: ₹1,304 (short-term target), Support level: ₹1,218 (pattern invalidation level)

Pattern: Uptrend continuation with breakout from consolidation; inverted Head & Shoulders on weekly RSI

RSI: 67, rising, with strength across daily and weekly time frames

Technical analysis: Price action is well supported by momentum indicators. The stock is trading well above its key moving averages, and MACD continues to rise. Breakout is confirmed on both daily and weekly timeframes, offering a strong multi-frame setup.

Risk factors: A dip below ₹1,218 could weaken the current bullish structure and lead to a short-term retracement. Given the recent breakout and higher levels, some profit booking could emerge if momentum slows. Close monitoring is advised to confirm follow-through.

Buy at: ₹1,246.90

Target price: ₹1,304

Stop loss: ₹1,218

Sectors defied the global backdrop and posted impressive gains. The realty sector led the way, rising 1.32%, driven by continued demand and long-term outlook. The oil and gas index advanced 1.11%, benefiting from firm energy pricing, while the infrastructure sector added 1.08%, suggesting steady capital flow into core segments.

Importantly, no sector closed in the red, highlighting the broad-based buying and domestic confidence despite global turmoil.

On the stock front, Bharat Electronics Ltd topped the charts with a 2.45% gain, supported by strong institutional interest. SBI Life Insurance followed with a 2.43% rise, while Ultratech Cement added 2.41%, showing strength in industrial and consumption-related counters.

Among the few laggards, Tata Motors declined 3.57%, likely reacting to overseas market pressures. Dr. Reddy’s dropped 1.15%, and Adani Ports edged lower by 0.31%, as profit-booking kicked in after recent gains.

The Nifty 50 closed strong at 24,946.50, gaining 227.90 points or 0.92%, after recovering sharply from a gap-down open. The intraday rebound reflected solid underlying strength, with the index ending near the day’s high, suggesting sustained buying interest despite early weakness.

Technically, the Nifty remains comfortably above its key moving averages. On the daily chart, the 20-day simple moving average is at 24,832, and the 40-day exponential moving average is at 24,532. On intraday timeframes, the 20-hour SMA stands at 24,847, while the 40-hour EMA is at 24,910. These levels continue to act as strong dynamic support zones and help the index maintain its bullish structure throughout the session.

Momentum indicators are supportive of the uptrend, though not yet overheated. The daily RSI stands at 55, indicating moderate strength and room for further upside, while the hourly RSI has improved to 54, reflecting a pickup in near-term momentum. The daily MACD remains in positive territory at +153, signalling sustained bullish momentum, though the hourly MACD remains slightly negative at -16, suggesting that some short-term consolidation could still occur before a clearer directional move.

Despite today's gains, no fresh breakout patterns were observed. The market remains within a range of 24,550 to 25,100, with 25,100 serving as the next resistance level to watch. A sustained move above this could open the door for a further rally, while 24,550 remains key short-term support.

The derivatives setup paints a positive picture. The Put-Call Ratio stands at 1.11, indicating a moderate bullish bias. Total Put open interest is at 137 million versus Call OI of 123.3 million, yielding a PE–CE differential of 13.7 million in favour of puts. More importantly, fresh additions were strong on the put side, with 51.8 million new contracts added versus 3.6 million on the call side, resulting in a bullish PE–CE OI change differential of 48.2 million. The highest call OI is concentrated at the 26,000 strike, while notable additions were seen at the 25,300 level. On the put side, the largest additions were at the 24,800 strike, suggesting strong support just below current levels. India VIX cooled off further, declining by 1.61% to 14.83, indicating lower volatility expectations and growing trader confidence.

Globally, market cues were mixed but leaned supportive. Geopolitical tensions in the Middle East persisted after Israeli strikes in Iran, but oil prices, which had surged last week, have since moderated. Brent crude is hovering around $73.50 per barrel, while WTI is near $72.25. This easing of oil prices helped reduce inflation fears and kept risk appetite steady. Global equity markets were positive, with Japan’s Nikkei and South Korea’s Kospi gaining over 1% each. European markets like the DAX and FTSE also edged higher, while US index futures were modestly in the green.

Central banks remain in focus. The US Federal Reserve is expected to hold rates steady at its upcoming meeting, while the European Central Bank has signalled a pause in rate adjustments, despite inflation still undershooting its target. These developments have kept global liquidity relatively stable. On the currency front, the rupee weakened slightly past ₹86 against the dollar, impacted by import-related dollar demand and cautious foreign flows amid oil-related pressure.

Domestically, there were no major economic data releases today such as CPI, WPI, or trade balance. However, the Reserve Bank of India is reportedly preparing to absorb excess liquidity through variable rate reverse repo (VRRR) operations, following its recent policy shift and rate cut on June 6. The central bank's stance remains neutral, with inflation projections stable and growth outlook intact for FY26.

In summary, today’s strong price action—marked by a recovery from early lows, a close above key averages, firm RSI readings, and a bullish derivatives setup—suggests that the market bias remains positive. While the absence of a major breakout warrants some caution near resistance at 25,100, dips are likely to be bought unless global shocks or domestic liquidity changes abruptly shift sentiment.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

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 guarantee 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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