Indian stock market: The Sensex and the Nifty 50 concluded with losses on Friday, June 28, ending their four-day winning streak. The benchmarks reached new all-time highs during the session but retreated as profit-taking set in amid mixed global cues.
The Nifty 50 touched a peak of 24,174 during the session but closed lower at 24,010.60, down 34 points or 0.14 percent. Of its constituents, 26 stocks closed higher while 24 ended in negative territory. Similarly, the 30-share pack achieved a fresh high of 79,671.58 before closing at 79,032.73, down 210 points or 0.27 percent. Among its components, 20 stocks finished in the red.
“Profit taking in banking stocks led the downfall in key benchmark indices, which had hit fresh intra-day highs in early optimism. While markets displayed volatility and ended weak in late selling, both Sensex & Nifty managed to close above their psychological levels of 79k and 24k respectively. Renewed FII buying in the current month so far and Indian government bonds inclusion in JP Morgan EM bond index had triggered a major rally this week, but markets could turn volatile once again as higher valuations and no change in interest rate stance could prompt investors to book profit at regular intervals," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Hitesh Rathi, Technical & Derivative Analyst, Angel One Ltd, recommends these seven stocks to watch next week out based on technical indicators - HCL Technologies, Wipro, Mphasis LTD, Happiest Minds, MTNL, Indus Towers and ITI Limited.
HCL has been one of the strongest counters in the entire IT basket from a technical perspective. The stock is currently positioned very close to its crucial levels in the intermediate term, aligning with a breakout on its weekly charts and the 220 EMA on its daily charts. Given this strategic price location, HCL technologies also offer a favourable risk-reward. The level of 1400 should act as a key support level, with its 22DEMA & 220 DEMA placed very closely, while the zone of 1515-1520 is likely to act as a strong hurdle.
The IT bellwether after forming a base on its monthly and weekly time frame charts, has broken out of the base above the levels of 445-450. The recent downswing also looks like a retest of that breakout. The stock also has some strong tailwinds of momentum behind, as suggested by a breakout on its daily RSI indicator. In terms of levels, immediate supports are placed in the 465-470 band, with sacrosanct supports around the 440 levels, and for resistance swing high in the 535-545 zone is a very potent resistance.
Mphasis has maintained, its formation of a higher high-higher lows on its higher time frame charts, while undergoing a consolidation on intermediate trend chart. The stock looks ready to come out of its sideways phase, as indicated by the breakout in RSI-indicator on its daily charts. The stock also appears to have exhausted its recent downswing, as indicated by the formation of a “Doji” and bullish engulfing candle near its support levels, making it a ripe candidate. The stock has a very strong resistance in the 2500-2535 band, while immediate supports are placed around the level of 2380, with strong support around the level of 2200.
Happiest Minds, has been undergoing a consolidation for quite some time now, forming a bullish falling wedge like pattern. Given the recent rise in volumes accompanying a range breakout on its daily charts, suggests a strong uptick in buying in the counter, making the stock ripe for a breakout. The recent formation of a bearish gap suggests the likelihood of a strong hurdle in the 895-900 zone. As far as supports are concerned the level of 770-760 is a sacrosanct support zone, while immediate supports can be found in the 815-810 zone.
MTNL, after breaking out on its monthly and weekly charts above the levels of 37-38, faced a stiff hurdle at its long-term falling trend line. However, given the breakout on its daily chart, following a brief consolidation, supported by robust volumes, makes the stock a very potent candidate to watch out for further upside. Moving forward, the level of 40 can be considered as an immediate support, with a very strong support in the 33-30 band. On the higher side, the level of 50 is likely to pose as a strong hurdle.
The stock has broken out of a very large consolidation on its daily, weekly and monthly charts above the 330-odd levels. On its daily chart, the stocks trade firmly above its major EMA’s suggesting strong tailwinds of momentum. Given the recent breakout, and positive alignment of momentum indicators Indus Towers looks ready to climb to higher levels in the coming days. The stock has supports placed around its breakout zone of 330-325, while resistance around the levels of 400-410, coinciding with falling trendline.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
