Indian equity markets experienced significant volatility on Monday, with the Sensex plunging roughly 750 points while the Nifty slipped below the 23,150 mark. According to latest reports, the sell-off was driven by a sharp jump in Brent crude after escalating West Asia hostilities (Iran-Israel exchanges), weaker global cues from a rout in US tech and Asian bourses, sustained foreign institutional outflows and a softer rupee near 95.35 to the dollar. The broader-based selling affected financials, IT, mid- and small-caps, with only pharma showing relative resilience. At mid-morning, the Sensex was down about 598 points and the Nifty near 23,180, with FIIs having sold aggressively in the week and concerns over higher US rate expectations adding pressure on equities.
Market expert Raja Venkatraman from NeoTrader has recommended three stocks for trading on June 9. The first recommendation is SFL (current market price ₹671.35), a global leader in polyurethane foam manufacturing with over 18 manufacturing facilities across Asia, Australia, and Europe. The stock has formed an accumulation pattern leading to a Cup and handle pattern with a buy above ₹675, stop loss at ₹640, and target price of ₹750 for 2 months. The second recommendation is FORTIS (current market price ₹989.10), a leading integrated healthcare delivery provider operating dozens of hospitals and diagnostic centers. With a buy above ₹992, stop loss at ₹948, and target price of ₹1096 for 2 months, the stock shows a long body candle formation indicating a rebound attempt.
The recommended stocks show varying technical patterns and risk profiles adapted to current market conditions. SFL presents support at ₹595 with resistance at ₹800, while FORTIS shows support at ₹60 with resistance at ₹80. DEEPAKFERT (current market price ₹1451.60) is recommended with a buy above ₹1455, stop loss at ₹1380, and target price of ₹1600 for 2 months, having survived constant volatility and taken advantage of sector tailwinds. The stocks face different risk factors including raw material volatility, aggressive debt-funded acquisitions, cyclical end-market demand, and foreign exchange exposure. Market strategists note that the bearishness has been dragging the index lower, with the options build-up indicating sentiment has changed to bearish trends.
The market outlook remains challenging as the Nifty has been on a roller coaster ride with the attempt to rebound being quite weak. As per Mint reports, the June series attempt to revive has been reset as every recovery is rendered ineffective, with the steady attempt at moving higher in May series needing more encouraging triggers. The 22,800-22,900 zone represents possible support while the Open Interest data retains that 24500 as the next set of resistance emerging. Market experts advise being quick to profit-take as the trend lacks sufficient steam to move strongly in either direction. The Bank Nifty has been a laggard due to lack of specific sector news, with the market largely docile as participants receive mixed signals about government fiscal deficit initiatives.
