Stock market recap: Indian equities ended marginally lower on Wednesday after late selling wiped out early gains. The Nifty 50 closed at 23,214.95, down 27.15 points, or 0.12%, after briefly rising to an intraday high of 23,425.35 and failing to hold above the 23,300 mark.
Early gains were driven by heavyweight stocks such as Reliance Industries following news of its AI data-centre partnership with Meta. Sentiment weakened later in the session, however, amid concerns over escalating US-Iran tensions and profit-taking across sectors.
The risk-off mood was reflected in market breadth, with decliners outnumbering advancers by more than two to one. A total of 2,258 stocks fell, compared with 1,038 advances, while 82 remained unchanged.
Two stock recommendations by MarketSmith India:
Rategain Travel Technologies Ltd (current price: ₹784)
- Why it’s recommended: Strong presence in travel-tech solutions, global customer base, SaaS-based business model, recurring revenue visibility, beneficiary of travel industry growth, asset-light operations, high-margin software offerings, strong hospitality sector relationships, expansion through acquisitions, increasing adoption of AI and analytics, scalable business model, cross-selling opportunities across products, strong international market presence, long-term digitalization tailwinds, and healthy cash generation potential.
- Key metrics: P/E: 42.16, 52-week high: ₹802.00, volume: ₹59.23
- Technical analysis: Cup base breakout
- Risk factors: Dependence on travel industry demand, global economic slowdown risk, customer concentration risk, intense competition in travel-tech space, integration risk from acquisitions, currency fluctuation impact, technology disruption risk, slower IT spending by clients, cybersecurity and data privacy risks, client retention challenges, margin pressure from higher investments, dependence on international markets, execution risk in new product launches, regulatory changes affecting travel sector, and valuation risk during growth slowdown.
- Buy: ₹776–788
- Target price: ₹900 in two to three months
- Stop loss: ₹735
Buy: Mishra Dhatu Nigam Ltd (current price: ₹433)
- Why it’s recommended: Strategic supplier to defence & aerospace, strong niche in special alloys, beneficiary of defence modernization, high entry barriers in metallurgy, government-backed enterprise, strong order book visibility, limited domestic competition, beneficiary of "Make in India" theme, exposure to space and nuclear sectors, specialized manufacturing capabilities, strong R&D expertise, expansion into high-value alloys, long-term demand visibility, import substitution opportunity, and strategic importance to national projects.
- Key metrics: P/E: 64.51, 52-week high: ₹469.00, volume: ₹73.36 crore
- Technical analysis: Cup-with-handle base breakout
- Risk factors: Dependence on government orders, slow defence procurement cycles, order execution delays, customer concentration risk, revenue lumpiness from large contracts, raw material price volatility, PSU-related operational constraints, margin pressure from input costs, working capital intensive projects, delays in capacity utilization, regulatory and compliance risks, export demand uncertainty, technology upgradation requirements, earnings volatility from order timing, and valuation risk during weak order inflows.
- Buy at: ₹429–435
- Target price: ₹480 in two to three months
- Stop loss: ₹415
Nifty 50 recap
Indian equities ended marginally lower on June 10 after late-session selling erased early gains. The Nifty 50 closed at 23,214.95, down 27.15 points, or 0.12%, after trading in a range of 23,184.60 to 23,425.35 during a volatile session.
Market breadth remained weak, reflecting broad-based profit booking. Declining stocks outnumbered gainers by more than two to one, with 2,258 stocks falling against 1,038 advances, while 82 remained unchanged.
Among sectoral indices, FMCG and private banks outperformed, gaining 1.05% and 0.72%, respectively. Media, realty, metal, oil and gas, and PSU banks led the declines. IT, auto, pharma and consumer durables also ended in the red, underscoring the market's risk-off tone.
From a technical perspective, the Nifty formed an inverted hammer candlestick on the daily chart while holding above the previous session's low, suggesting buying interest at lower levels despite intraday volatility. The index continues to trade below its short-term moving averages, indicating weak near-term momentum.
The Relative Strength Index (RSI) remains around 39, below the neutral 50 mark, while the MACD stays in negative territory with the MACD line below both the signal line and the zero line. The negative histogram reading also points to a continuing corrective bias.
The index's ability to close above 23,200 suggests some resilience despite the prevailing downtrend. The 23,100-23,000 zone remains a key support area and has helped absorb selling pressure in recent sessions. A decisive break below this range could trigger fresh weakness and open the door for a move towards 22,700.
On the upside, the 50-day moving average near 23,500 remains the key hurdle. A sustained move above that level would improve the short-term outlook and could pave the way for a further advance towards 23,700.
How did Nifty Bank perform?
Banking stocks mirrored the broader market's volatility on Wednesday, with early gains in large private-sector lenders giving way to late selling in public-sector banks. The Nifty Bank index closed at 55,100.30, down 94.20 points, or 0.17%, after touching an intraday high of 55,555.85.
Private-sector lenders provided support, with Axis Bank rising 1.67%, Kotak Mahindra Bank gaining 1.65%, ICICI Bank advancing 1.41% and HDFC Bank adding 1.28%. Losses in public-sector banks weighed on the index, led by IndusInd Bank, which fell 4.10%, followed by Canara Bank (-3.06%), Union Bank (-2.32%) and Punjab National Bank (-2.23%).
From a technical perspective, the Nifty Bank index ended marginally lower but continued to hold above its 50-day moving average after breaking above a downward-sloping trendline drawn from the April-May highs. The breakout suggests an improvement in near-term sentiment following the earlier corrective phase.
The Relative Strength Index (RSI) remains around 55, above the neutral 50 mark, while the MACD stays in positive territory with the MACD line above the signal line. Positive histogram readings indicate that momentum remains supportive.
The index now faces resistance in the 55,300-55,500 zone, which coincides with recent swing highs. A decisive close above this range could pave the way for a move towards 56,500.
On the downside, the 54,700-54,500 range is expected to provide key support. The near-term outlook is likely to remain constructive as long as the index holds above this area.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.
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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.