Benchmark indices snapped their five-session winning streak on Friday, June 19, with the Sensex falling 607 points (0.78%) to close at 76,802.90 and the Nifty 50 declining 154.90 points (0.64%) to settle at 24,013.10. According to reports from LiveMint, the selloff was led by a sharp decline in information technology stocks after Accenture cut its revenue growth forecast. Weak global cues, renewed foreign institutional investor (FII) selling and lingering geopolitical concerns further dampened investor sentiment. Despite the weakness in frontline indices, broader markets outperformed with the Nifty Midcap 100 rising 0.22% and the Nifty Smallcap 100 gaining 0.42%.
According to Sumeet Bagadia, Executive Director at Choice Broking, the formation of a doji-like candlestick pattern indicates indecisiveness among market participants. As reported by LiveMint, the pattern reflects a balance between buyers and sellers after the recent up move and suggests that the market may be awaiting fresh triggers for its next directional move. Immediate support for Nifty 50 is placed in the 23,850–23,900 range while resistance is observed between 24,100 and 24,150 levels. The Relative Strength Index (RSI) stands at 57.76, indicating that momentum remains positive despite the consolidation witnessed during the session. The volatility index, India VIX, increased by 2.35% to close at 12.97, suggesting increasing volatility and decreasing confidence among market participants.
For the banking index, Bagadia stated that the formation of a small hammer-like candlestick pattern reflects buying support emerging from lower levels. According to LiveMint reports, the long lower shadow suggests that buyers remained active near support zones despite weakness during the session. Immediate support is placed in the 57,300–57,400 range while resistance is seen in the 58,000–58,100 zone. The RSI stands at 67.81, indicating strong momentum and continued strength in the banking index despite the corrective move witnessed during the session.
Bagadia has recommended three stocks to buy on Monday, June 22. Eternal is recommended at ₹264 with a stop loss of ₹250 and target of ₹290, showing signs of strength after a prolonged consolidation phase. Nestle India is suggested at ₹1,414 with a stop loss of ₹1,346 and target of ₹1,500, having staged a strong recovery from recent lows. Bharti Airtel is recommended at ₹1,910 with a stop loss of ₹1,843 and target of ₹2,040, continuing to exhibit strong bullish characteristics after forming a potential double-bottom pattern.
