Market is broadly positive

Mumbai, June 20

n the last week, the benchmark indices bounced back sharply. The Nifty ended 1.59 per cent higher, while the Sensex gained 1290 points. Among sectors, the Consumer, Infra and Private Bank indices outperformed, Consumer rallied 2 percent and Infra and Private Bank indices gained over 1 percent whereas the Media index was the top loser, shedding 2.85 per cent. Technically, on weekly charts, the market has formed bullish candle, and on daily charts, it has formed a higher bottom formation. Additionally, it is currently trading above the 20-day Simple Moving Average (SMA), which is broadly positive.

“We are of the view that, last Friday, the market not only cleared the 81,800 resistance level but also succeeded in closing above it,” says Amol Athawale of Kotak Securities.

For short-term traders, the key support zones are now 81,600 or the 20-day SMA, and 81,100. As long as the market remains above these levels, the bullish sentiment is likely to continue. On the higher side, 82,700 would be the immediate resistance level for the bulls. Above this, the market could move up to 83,300-83,600.

However, if the market dismisses 81,100 then uptrend could become vulnerable. In such a scenario, it could retest the 80,500 level. Further downside could push the market toward 80,200 or the 50-day SMA.

Prashanth Tapse, Senior VP (Research), Mehta We are of the view that, last Friday, the market not only cleared the 81,800 resistance level but also succeeded in closing above it Equities says, “Markets witnessed consolidation after the recent spell of subdued trend, as strong European cues and positive Dow Futures triggered a massive rally in local benchmarks. Investors also resorted to short covering ahead of next week's monthly derivatives expiry. “

Despite the rebound, investors would still maintain caution due to the ongoing West Asia conflict, as any spike in crude oil prices owing to escalation in tension could fuel uncertainty and spook markets.

Stock Picks

BEML

Buy at ₹4,664 | Stop‑Loss ₹4,500 | Target ₹5,200

BEML has made a strong breakout above the ₹4,600–4,650 resistance zone backed by solid volume, signaling renewed buying interest. The stock is trading well above its 20‑ and 50‑day moving averages and shows a clear uptrend marked by higher highs and higher lows. The Relative Strength Index (RSI) is near 68, reflecting robust momentum with room to run. A sustained move above ₹4,650 could open the way toward ₹5,200 in the near term. Investors may consider entering on minor dips, with ₹4,500 as a protective stop to manage downside risk.

Cochin Shipyard

Buy at ₹2,201 | Stop‑Loss ₹2,120 | Target ₹2,500

Cochin Shipyard has rebounded from its support area around ₹2,140 and is now advancing toward ₹2,200, supported by increased buying volume. The stock has moved past its 20‑day and 50‑day moving averages, reinforcing a short-term bullish setup. The RSI currently reads around 66, indicating healthy upward momentum without overbought conditions. If the stock sustains above ₹2,200, it could rally toward ₹2,500 in the near term. Traders may look to initiate positions on small pullbacks, with ₹2,120 serving as a prudent stop‑loss level.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.