The Nifty 50 ended the week gone by on a negative note amid persistent FII selling, geopolitical developments, fluctuations in crude oil prices, and caution ahead of the RBI policy announcement.
The index traded in a range of 23,700 to 23,150 and fell nearly 1% for the week ended June 5, extending losses for the second consecutive week.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, the 23,300–23,100 zone continues to represent a critical demand area, and its ability to hold will be pivotal in determining the market’s near-term direction. As long as this support band remains intact, the broader market structure continues to favour a constructive outlook.
On the upside, 23,800 remains the immediate hurdle for the index.
Patel said a sustained breakout above this level could trigger renewed buying interest and pave the way for a move towards the 24,100 zone, which continues to represent a significant supply area. Until such a breakout materialises, the Nifty 50 is likely to remain confined within a broad consolidation range.
“While near-term market action may continue to remain range-bound and stock-specific, the index’s repeated defence of the 23,100 support region is encouraging and suggests that underlying buying interest remains intact at lower levels,” said Patel.
The banking index continues to exhibit a stronger technical structure relative to the broader market.
“As long as the 52,800–53,200 support zone remains protected, the prevailing trend is expected to remain favourable for the bulls. On the upside, 55,500 continues to be the key resistance level to monitor. A decisive breakout above this threshold could accelerate bullish momentum and potentially drive the index towards the 56,000–58,000 zone over the coming weeks,” said Patel.
Jigar Patel recommends buying the following three stocks for the next 1-2 weeks:
Zen Technologies | Previous close: ₹1,815.30 | Buying zone: ₹1,780 to ₹1,820 | Target price: ₹2,050 | Stop loss: ₹1,675
Patel highlighted that recently witnessed a decisive breakout above a major resistance zone represented by the Ichimoku Flat Cloud, as highlighted in the chart.
This development signals a potential continuation of the ongoing uptrend and indicates strengthening bullish sentiment.
Adding conviction to the bullish setup, key momentum indicators are aligned positively.
The DMI continues to support trend strength, while the Stochastic Oscillator remains in bullish territory, indicating sustained buying interest.
The MACD has generated a positive crossover, reinforcing the possibility of further upside momentum.
Voltas | Previous close: ₹1,298.30 | Buying zone: ₹1,270 to ₹1,300 | Target price: ₹1,450 | Stop loss: ₹1,200
According to Patel, formed a multiple bottom pattern in the ₹1,200–1,250 zone, indicating a strong base formation and highlighting significant buying interest.
Notably, this area also coincides with a previous demand zone, further strengthening its importance as a key support region.
Adding to the positive outlook, a bullish divergence is visible on the daily Stochastic oscillator, suggesting that downside momentum is weakening and a potential reversal may be underway.
With price action stabilising near an important support area and momentum indicators showing signs of improvement, the risk-reward setup appears favourable for a bullish move.
VBL | Previous close: ₹523.30 | Short sell zone: ₹525 to ₹530 | Target price: ₹475 | Stop loss: ₹555
As per Patel, (VBL) is currently encountering strong resistance near the 61.8% Fibonacci retracement of its previous up move, which also coincides with a flat Ichimoku Cloud resistance zone, as highlighted in the chart.
This confluence of resistance levels suggests that the ongoing pullback may continue unless the stock manages to decisively overcome this hurdle.
Further strengthening the bearish case, the stock has formed a Shooting Star followed by a Bearish Engulfing candlestick pattern on the daily chart near an extended top, indicating exhaustion in buying momentum and the emergence of selling pressure at higher levels.
Momentum indicators are also supporting the negative outlook. MACD, DMI, and Stochastic Oscillator are all displaying bearish divergences, suggesting weakening upward momentum despite higher prices and increasing the probability of a corrective decline, said Patel.
Disclaimer: This story is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.