The market played coy today, refusing to commit to a clear direction despite positive sector rotations. Raja Venkatraman of NeoTrader offers some insights and three compelling stock picks for Wednesday, June 11th.
Market Recap: A Tale of Two Sectors
Following a four-day rally, banking stocks took a breather, slowing the Nifty Bank's momentum. However, the broader market held steady, the India VIX continuing its decline, suggesting investor confidence. Benchmark indices traded within a narrow range, reflecting a cautious overall sentiment. While financials paused, the IT sector surged, propelled by strong buying interest in giants like TCS, Infosys, HCL Technologies, and Wipro. Conversely, the real estate sector saw profit-booking for the second consecutive day.
Despite the sector-specific fluctuations, overall market volatility remained low, leaving many traders adopting a wait-and-see approach.
Outlook: Navigating the Uncertainty
While the Nifty attempts to hold higher levels, selling pressure continues to cap gains. The 25,500 mark remains a key resistance level. Support zones have held, maintaining a bullish undercurrent, but caution is advised. Yesterday's predicted reaction around 24,900-25,000 saw buying interest emerge, potentially signaling a revival. The RSI holding at 60 suggests upward momentum.
Max Pain Point Shift: The Max Pain Point has shifted to 25,000, with the PCR remaining below 1, indicating persistent selling pressure.
NeoTrader's Raja Venkatraman's Top 3 Stock Recommendations:
Disclaimer: Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223. Investments in securities are subject to market risks. Read all related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance or assures returns. The views and recommendations are those of individual analysts and do not represent the views of Mint. Consult certified experts before making investment decisions.
