Short-term market outlook is positive

Mumbai, June 30

Today, the benchmark indices witnessed profit booking at higher levels. The Sensex was down by 452 points.

Among sectors, the PSU Bank index outperformed, rallying 2.6 per cent, whereas intraday profit booking was seen in banking and financial stocks. Technically, after a muted open, the market witnessed consistent profit booking at higher levels. A bearish candle on daily charts indicates temporary weakness. However, the short-term market outlook remains positive.

“We believe that 83,500 will act as a key level to watch. Below 83,500, we could see a further correction towards 83,200-83,000,” says Shrikant Chouhan, Head Equity Research, Kotak Securities.

On the flip side, a sustained move above 83,500 could push the market up to 83,900. Further upside may also continue, potentially lifting the market to 84,200.

Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Last week, the market had seen a sharp upsurge on the back of strong global cues and domestic institution buying, however, profit-taking came to the fore which pulled down benchmark indices. “

The focus will be on tariff settlement with the US government, as the due date is nearing and India is yet to conclude the agreement which could create uncertainty amongst the investors. While volatility will continue, India's strong growth prospects going forward would temper the fall.

Stock Picks

State Bank of India (SBIN)

Buy at ₹820 | Stop‑Loss ₹790 | Target ₹880

SBIN has rebounded from the ₹790 support level and is now trading near ₹820 with increased volume, suggesting renewed bullish interest. The stock has formed a sequence of higher lows and is firmly above its 20‑day and 50‑day moving averages, indicating sustained strength. The Relative Strength Index (RSI) is around 67, reflecting building momentum without entering overbought territory. As long as it holds above ₹790, the short-term outlook remains positive. A move toward ₹880 looks feasible if the momentum continues. Traders may consider buying on dips, using ₹790 as a protective stop.

Oil and Natural Gas Corporation Ltd (ONGC)

Buy at ₹244 | Stop‑Loss ₹230 | Target ₹270

ONGC has shown signs of revival, climbing above the ₹240 resistance level backed by rising volumes. The stock is trading above its short-term moving averages, and the price structure shows higher highs—suggesting the emergence of strength. The RSI stands at approximately 65, signaling bullish momentum without being overbought. If ONGC sustains above ₹240, it could head toward ₹270 in the near term. A stop-loss at ₹230 helps manage risk while allowing for upside participation. Traders may look to add on minor pullbacks with a favorable risk-reward profile.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.