The domestic stock market witnessed strong buying across segments on Wednesday, with the Sensex and Nifty 50 jumping over 1% each despite rising oil prices and escalating tensions between the US and Iran. According to reports from Mint, market sentiment was supported by strong industrial output data, which signalled the Indian economy would remain resilient despite increased geopolitical risks. The Index of Industrial Production (IIP) grew 7.3% year-on-year in June, a six-month high. However, the current setup remains challenging with crude oil prices above $90 per barrel as tensions between the US and Iran have been escalating.
On the technical front, the Nifty 50 settled above the 20-day SMA (simple moving average) resistance on Wednesday, which is broadly positive. As reported by Mint, Amol Athawale, VP of technical research at Kotak Securities, believes the 20-day SMA at 24,100 and 24,150 will be crucial support zones, and as long as the index remains above these levels, the prevailing uptrend may continue. On the upside, the index may advance to 24,400–24,500. However, if it slips below 24,100, the uptrend could become vulnerable.
Amol Athawale recommends JSW Steel for the next 1-2 weeks with a target price of ₹1,360 and stop loss at ₹1,230. According to reports from Mint, after the correction from higher levels, JSW Steel's share price had been trading in a range-bound mode but has given a range breakout move in the recent session. The closing above the resistance line indicates further bullish momentum to continue from current levels, with ₹1,230 being the trend decider level for the bulls.
For Sun TV Network, Athawale recommends a target price of ₹540 with stop loss at ₹498, noting that after its declining trend, the stock has reversed from its important demand zone and formed a double bottom chart pattern. For Max Financial Services (MFSL), the recommendation includes a target price of ₹1,630 with stop loss at ₹1,465, as the stock is near its multiple support zone with incremental volume activity indicating restricted downside. As reported by Mint, the technical indicators like RSI are indicating further uptrend momentum for both stocks.
