Stock market recap: The rally on Dalal Street extended into a third straight session on Tuesday as investors cheered the US-Iran peace deal and the resulting decline in crude oil prices, easing concerns over inflation and economic growth, particularly for oil-importing economies such as India.
The BSE Sensex rose 544 points, or 0.71%, to close at 76,809, while the NSE Nifty 50 gained 135.25 points, or 0.57%, to settle at 23,989. The benchmark indices have advanced about 4% over the past three sessions, buoyed by optimism surrounding the peace agreement and the prospect of lower energy costs.
Stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
KPIL (current market price ₹1365.70)
- Why it’s recommended: Kalpataru Projects International Ltd (KPIL), is a leading global engineering, procurement, and construction (EPC) company, executing major infrastructure projects across power transmission, railways, oil & gas, and urban mobility. The stock declined all through the year. The rallies were sold into but th stock consolidated in May and is now showing some strong buying interest leading to a sharp breakout on Monday. With some upward revival in Relative Strength Index (RSI) to cross above 60 after a while , we can look initiating long.
- Key metrics:
- P/E: 28.04,
- 52-week high: ₹1335.60,
- Volume: 2.43M
- Technical analysis: Support at ₹1300, resistance at ₹1500.
- Risk factors: Working capital intensity, global execution challenges, commodity price volatility, and dependency on public capital expenditures.
- Buy : above ₹1366.
- Stop loss: ₹1320.
- Target price: ₹1485 (2 Months)
DLF (current market prices ₹629.30)
- Why it’s recommended: DLF Ltd is India’s largest publicly listed real estate company, headquartered in Gurugram, Haryana. Founded in 1946, the company operates across residential, commercial, and retail segments, spanning 15 Indian states. After oscillating for a while in the last few weeks generating wide swings, the strong showing by the Baking sector provided some tailwind to produce a strong surge. The thrust has now pushed it above the recent range resistance around 620. A long body candle formation shows some genuine buying build up at lower levels with a potential to move higher.
- Key metrics:
- P/E Ratio : 41.79,
- 52-week high: ₹882,
- Volume: 5.39M.
- Technical analysis: Support at ₹591, resistance at ₹730.
- Risk factors: High concentration in the Gurugram and Delhi-NCR markets, the cyclical nature of the real estate industry.
- Buy : above ₹630
- Stop loss: ₹611
- Target price: ₹695 (2 Months)
MMTC (current market price ₹75.74)
- Why it’s recommended: MMTC Ltd is one of India's largest public sector trading bodies and a leading international trading house. The trends dipped sharply in march to generated a V-shaped recovery in the last few days to slip into consolidation. The announcement of the Union cabinet approved an incentive scheme to replace old trucks and buses in the Delhi-NCR region generated a strong demand in this counter to push it beyond important resistance zones. With the Relative strength Index firmly headed higher with volumes indicate a potential upward bias.
- Key metrics:
- P/E Ratio : 53.57,
- 52-week high: ₹73.88,
- Volume: 114.15M.
- Technical analysis: Support at ₹69, resistance at ₹85
- Risk factors: severe revenue contractions, and heavy reliance on non-core income to sustain profitability.
- Buy : above ₹76
- Stop loss: ₹72.50
- Target price: ₹83 (2 Months)
Market Wrap
Indian equities extended their gains on June 16, with the Sensex rising 544 points to close at 76,809 and the Nifty 50 advancing 134.80 points to 23,988.70, ending just shy of the psychologically important 24,000 mark.
The rally was led by IT and FMCG stocks, with HCLTech and Tata Consumer Products among the top gainers. Reliance Industries also provided support to the benchmarks. Metals emerged as the key laggards, with Hindalco and JSW Steel weighing on sentiment, while select pharma and auto stocks also traded lower.
Market breadth remained positive, with 29 Nifty constituents advancing against 21 declines, reflecting a cautiously optimistic tone. Softer crude oil prices, stronger-than-expected domestic growth data and easing inflation helped underpin investor sentiment. India's economy expanded 7.4% in the latest quarter, while retail inflation cooled to 3.48%, reinforcing expectations of a supportive macroeconomic backdrop.
Outlook for Trading
The market's rebound has gathered momentum over the past few sessions, with the Nifty once again testing the 24,000 level. Unlike last week, participation has broadened, with support emerging from mid- and small-cap segments alongside the benchmark indices.
That said, caution remains warranted. While sentiment has improved, the recent advance still bears the hallmarks of a recovery rally rather than the start of a sustained uptrend. Investors will continue to monitor domestic developments and geopolitical risks, particularly developments related to the US-Iran situation, which could influence global risk appetite and energy prices.
With markets closed on Thursday, volatility could remain elevated in the near term. Global cues also remain mixed, and a decisive trend may take time to emerge.
The mid-cap index has shown signs of recovery, forming higher lows as buying interest returns to previously beaten-down stocks. Technical indicators such as the RSI suggest momentum is improving, although higher-timeframe trends remain less convincing. In this environment, a selective and disciplined approach may be preferable to aggressive momentum chasing.
Technically, the Nifty's near-term structure remains constructive as long as it holds above 23,800. Any pullbacks toward support levels could attract buying interest, with 24,200 emerging as the next key upside target.
While the broader trend has turned more positive, participation remains uneven and conviction is yet to fully return. Valuations are once again entering the discussion as markets recover, making stock selection increasingly important.
The recent rally has been aided by significant short covering, but investors should remain mindful of headline risks and geopolitical developments that could quickly alter sentiment. As the market approaches resistance near 24,200, the sustainability of the rebound will depend on fresh positive triggers and broader participation.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.