Benchmark indices dropped on June 19, led by weak IT stocks and FII selling. Despite this, Nifty Midcap and Smallcap gained. Analysts suggest indecisiveness in the market and recommend three stocks to buy. Key support and resistance levels are highlighted for Nifty and Bank Nifty.
Buy or sell stocks: Benchmark equity indices Sensex and Nifty 50 snapped their five-session winning streak on Friday, June 19, dragged lower by a sharp selloff in information technology stocks after Accenture cut its revenue growth forecast. Weak global cues, renewed foreign institutional investor (FII) selling and lingering geopolitical concerns further dampened investor sentiment.
The Sensex fell 607 points, or 0.78%, to close at 76,802.90, while the Nifty 50 declined 154.90 points, or 0.64%, to settle at 24,013.10. Despite the weakness in frontline indices, broader markets outperformed. The Nifty Midcap 100 rose 0.22%, while the Nifty Smallcap 100 gained 0.42%.
Among sectoral indices, Nifty IT was the worst performer, plunging more than 3.6%. Nifty Auto, Nifty Bank and Nifty Oil & Gas also ended in negative territory. On the other hand, Nifty Media, Nifty Pharma, Nifty Healthcare and Nifty Chemicals posted gains, providing some support to the broader market.
Nifty 50 Outlook
According to Sumeet Bagadia, Executive Director at Choice Broking, on the daily timeframe, the formation of a doji-like candlestick pattern indicates indecisiveness among market participants. The pattern reflects a balance between buyers and sellers after the recent up move and suggests that the market may be awaiting fresh triggers for its next directional move, noted the expert.
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“From a technical perspective, immediate support is placed in the 23,850–23,900 range, while resistance is observed between 24,100 and 24,150 levels. The Relative Strength Index (RSI) stands at 57.76, indicating that momentum remains positive despite the consolidation witnessed during the session. The volatility index, India VIX, increase by 2.35% to close at 12.97, suggesting increasing volatility and decreasing confidence among market participants,” he highlighted.
In the derivatives segment, notable call writing was seen at the 24,000 strike, followed by 24,200, while significant put writing was observed at 24,000 and 23,900 levels, indicating immediate support near the 24,000 zone while resistance remains positioned at higher strikes, added Bagadia.
Bank Nifty
For the banking index, the expert stated that on the daily timeframe, the formation of a small hammer-like candlestick pattern reflects buying support emerging from lower levels. The long lower shadow suggests that buyers remained active near support zones despite weakness during the session.
“From a technical standpoint, immediate support is placed in the 57,300–57,400 range, while resistance is seen in the 58,000–58,100 zone. The Relative Strength Index (RSI) stands at 67.81, indicating strong momentum and continued strength in the banking index despite the corrective move witnessed during the session. Sustaining above immediate support zones will remain important for continuation of the prevailing bullish trend,” he pointed out.
He further said that the recent price action suggests a range-bound and volatile trading session with both benchmark indices opening lower and spending most of the day in consolidation. Volatility increased sharply towards the close, resulting in swift intraday swings across both indices. While Nifty formed a doji-like pattern reflecting indecision, Bank Nifty managed to recover significantly from lower levels and formed a small hammer-like structure, indicating some buying support at lower levels. Traders are advised to closely monitor immediate resistance zones, as a sustained move above these levels could strengthen bullish momentum, while support levels continue to act as key demand areas in the near term, added Bagadia.
Stocks to buy
Bagadia has also recommended three stocks to buy on Monday, 22 June – Eternal, Bharti Airtel, and Nestle India.
Eternal
Buy ETERNAL in Cash ₹264; Stop Loss ₹250; Target ₹290
ETERNAL is showing signs of strength after a prolonged consolidation phase and is currently trading around ₹264. The stock has successfully rebounded from lower levels and is now trading very close to its 200-day EMA, indicating that long-term support remains intact. Technically, the stock is on the verge of a breakout from its short-term consolidation range, while the 20-day EMA is attempting to cross above the 50-day EMA, reflecting improving momentum.
The RSI is placed at 62.10, suggesting healthy bullish strength without entering overbought territory. Sustaining above the ₹264 zone could trigger fresh buying interest and open the path towards ₹290. On the downside, ₹250 remains a crucial support and stop-loss level, coinciding with the 20-day and 50-day EMA zone, making it an important level to watch.
Nestle India
Buy NESTLEIND in Cash at ₹1414; Stop Loss ₹1346; Target ₹1500
NESTLEIND has staged a strong recovery from its recent lows and remains in a broader uptrend after touching a lifetime high near the ₹1,500 mark. Following the sharp rally, the stock witnessed healthy profit booking and corrected towards the 38.2% Fibonacci retracement zone, which also aligned with the 50-day EMA support area. Buyers emerged from these levels, resulting in a fresh rebound and helping the stock reclaim all its key moving averages.
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Currently trading above the 20, 50, 100 and 200-day EMAs, the overall trend structure remains positive. The RSI is hovering around 53, indicating a balanced momentum setup with room for further upside. A sustained move above current levels could lead to a retest of ₹1,500, while ₹1,346, which coincides with the 100-day EMA, should act as a strong support and stop-loss level.
Bharti Airtel
Buy BHARTIARTL in Cash at ₹1910; Stop Loss ₹1843; Target ₹2040
BHARTIARTL continues to exhibit strong bullish characteristics after forming a potential double-bottom pattern near its recent lows. The stock has witnessed a sharp recovery from the support zone and is now trading comfortably above its key moving averages, reflecting renewed buying momentum. Price action suggests the stock is maintaining a higher-high and higher-low structure, which is a classic indication of an emerging uptrend.
Additionally, the recent move above major EMA levels has strengthened the bullish outlook and indicates that buyers remain firmly in control. Momentum indicators are also improving, supporting the possibility of further upside in the coming sessions. As long as the stock sustains above ₹1,910, it has the potential to advance towards ₹2,040, which remains the next significant resistance zone. On the downside, ₹1,843 should act as a strong support and stop-loss level, coinciding with the 20-day EMA region.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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