Stock market recap: Indian equities witnessed solid buying interest on Wednesday, 25 June, with frontline equity indices, the Sensex and the Nifty 50, clocking strong gains.
The Sensex ended 791 points, or 1.04%, higher at 76,991.22, while the Nifty 50 settled at 24,021.65, up 198 points, or 0.83%. Mid and small-cap segments underperformed, as the Nifty Midcap 100 and Smallcap 100 indices rose by 0.10% and 0.39%, respectively.
The overall market capitalisation of firms listed on the BSE rose to over ₹476 trillion from ₹475 trillion in the previous session.
Two stock recommendations by MarketSmith India:
Buy: AU Small Finance Bank Ltd(current price: ₹1,067)
- Why it’s recommended: Strong retail-focused banking franchise, consistent growth in deposits and advances, healthy profitability (ROA & ROE), strong capital adequacy position, improving scale after Fincare merger, diversified loan portfolio, strong presence in underserved markets, high net interest margin (NIM), good asset quality management, growing CASA base, experienced management team, strong brand in vehicle and MSME lending, digital banking expansion, potential transition to Universal Bank, long-term financial inclusion opportunity, consistent earnings growth track record, largest small finance bank by scale
- Key metrics: P/E: 29.09, 52-week high: ₹1,079.55, volume: ₹519.63 crore
- Technical analysis: Trendline Breakout
- Risk factors: Rising competition from private banks, credit cycle deterioration risk, higher exposure to MSME and retail segments, asset quality stress during economic slowdown, NPA increase risk, margin pressure from falling interest rates, integration risks from acquisitions/mergers, regulatory compliance risks, dependence on rural and semi-urban markets, higher provisioning requirements, deposit mobilization challenges, slower-than-expected universal bank transition, economic slowdown affecting borrowers, interest rate volatility, capital raising dilution risk, geographic concentration in some regions, fintech competition in retail banking, growth may moderate as scale increases
- Buy: ₹1,056–1,072
- Target price: ₹1,190 in two to three months
- Stop loss: ₹1,010
Buy: Precision Wires India Ltd (current price: ₹441)
- Why it’s recommended: Leading player in copper winding wires, strong market position in organized sector, long operating history and experienced management, reputed OEM customer base, consistent revenue growth, capacity expansion underway, backward integration into copper recycling, strong balance sheet, low debt-to-equity ratio, healthy liquidity position, comfortable debt coverage metrics, beneficiary of power and infrastructure growth, exposure to EV, motors and transformer demand, back-to-back order model reduces copper price risk, regular dividend-paying track record, growing export opportunities
- Key metrics: P/E: 49.65, 52-week high: ₹467.50, volume: ₹29.56 crore
- Technical analysis: Trendline Breakout
- Risk factors: Low operating margins, commodity business with limited pricing power, high dependence on copper demand cycle, intense competition from organized and unorganized players, working-capital-intensive operations, revenue linked to industrial and infrastructure capex, slowdown in transformer/motor demand can impact volumes, customer concentration risk, execution risk in expansion projects, copper price volatility can affect short-term profitability, limited product differentiation, export market slowdown risk, energy and logistics cost inflation, margin pressure during weak industry cycles, capital allocation risk in new projects
- Buy at: ₹437–443
- Target price: ₹550 in two to three months
- Stop loss: ₹405
Nifty 50 performance on Wednesday
Indian equity markets ended firmly higher on June 24. The Nifty 50 gained 197.55 points, or 0.83%, to close at 24,021.65 after trading in a broad range of 23,789–24,090 during the session. The benchmark index witnessed steady buying through the day, supported by strength in financials, information technology, and realty stocks.
Sector-wise, Nifty Realty (+2.17%), Nifty IT (+2.05%), Nifty Private Bank (+1.85%), and Financial Services (+1.42%) emerged as the top gainers, while Auto (-0.42%) and Metal (-0.40%) were the only notable laggards. Market breadth remained positive, with 1,735 stocks advancing against 1,566 declining and 95 remaining unchanged, indicating broader participation despite some pockets of profit-taking.
The index formed a positive candle on the daily chart, reflecting sustained buying interest despite some intraday profit-booking near higher levels. The index continues to trade above the downward-sloping trendline, indicating that the recent breakout remains intact and the short-term structure has improved. However, Nifty is still trading below its 100-DMA, suggesting that the broader trend has not yet fully transitioned into a stronger bullish phase and may require further follow-through buying to confirm a trend reversal. Momentum indicators remain constructive. The Relative Strength Index (RSI) is positioned at 56.2, highlighting improving bullish momentum while staying comfortably above the neutral 50 mark. Meanwhile, the MACD continues to hold above the signal line with positive histogram readings, reflecting a sustained bullish crossover and strengthening upward momentum.
The Nifty 50 continued to consolidate within the 50- and 100-DMA range, while successfully closing above the psychologically important 24,000 mark, reflecting resilience in market sentiment. From a technical perspective, the index remains positioned above a key downward-sloping trendline, indicating that the broader recovery structure remains intact despite ongoing consolidation. The 23,800–23,650 zone remains a crucial area to monitor, as sustained trading above this band would reinforce the prevailing positive bias and reduce the risk of a deeper corrective move. On the upside, a decisive close above the 100-DMA, currently placed near 24,200, would be a significant technical development, signalling renewed buying interest and strengthening the case for a continuation of the recovery trend. Such a breakout could pave the way for an advance toward the 24,350–24,600 zone over the near term, supported by improving momentum indicators and a gradually strengthening market structure.
How did Nifty Bank perform?
The Nifty Bank index opened on a positive note at 57,074.90 and witnessed strong buying interest throughout the session. The index touched an intraday high of 58,256.35, while the low remained at 57,074.90, before closing near the day’s high at 58,150.35, gaining 966.60 points (+1.69%). The strong close near the upper end of the trading range indicates sustained bullish momentum and limited profit booking despite the sharp rally. Price action also reflects a decisive breakout above the 50-DMA (57,102) and 10-DMA (57,299), while reclaiming the 200-DMA (57,102) with conviction. Technically, the recent structure resembles a rounding-bottom recovery pattern, suggesting improving market sentiment and a potential continuation of the ongoing uptrend.
The RSI (14) is placed at 66.46, comfortably above the neutral 50 mark and approaching the overbought zone, indicating strengthening bullish momentum. Importantly, RSI continues to make higher highs, confirming the recent price breakout and showing no signs of negative divergence at present. The MACD remains firmly positive, with the MACD line above the signal line and the histogram expanding in positive territory, reflecting increasing upward momentum. The recent bullish crossover remains intact, reinforcing the strength of the current trend. Together, RSI and MACD suggest that buyers continue to dominate, although some short-term consolidation cannot be ruled out after the sharp advance witnessed over the past few sessions.
On the technical front, immediate support is placed near 57,300–57,100, coinciding with the 10-DMA, 50-DMA, and the recent breakout zone. Stronger support is seen around 56,400, where the 100-DMA is positioned. On the upside, immediate resistance is located near 58,300–58,500, followed by a stronger hurdle around the 59,000–59,300 zone. The successful reclaiming of major moving averages and the improving momentum indicators suggest the path of least resistance remains upward. Additionally, supportive domestic liquidity, resilient banking sector participation, and improving risk appetite may continue to aid sentiment. As long as the index sustains above the 57,100 zone, dips are likely to attract buying interest, with the potential for a gradual move toward the 59,000 region in the coming sessions.
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.
Trade name: William O’Neil India Pvt. Ltd.
Sebi Registration No.: INH000015543
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.