Market Outlook for June 2
The Nifty 50 index experienced a significant downturn on May 30, closing 83 points lower amid market volatility and rangebound trading. Despite this, analysts expect the market to trade with a positive bias within a likely rangebound zone.
Stocks to Watch
Gujarat Pipavav Port
Gujarat Pipavav Port has confirmed a short-term trend reversal, forming a series of higher tops and bottoms on the daily chart. The stock has broken above multiple resistance zones from the past five months on a closing basis, indicating a strong comeback for bulls. This breakout is accompanied by high volumes, signifying increased participation.
- Strategy: Buy
- Target: Rs 175, Rs 189
- Stop-Loss: Rs 150
Central Depository Services (CDSL)
CDSL is positioned above its Inverse Head & Shoulders pattern, indicating bullish sentiments. The stock is trending higher with a series of higher tops and bottoms and remains above its key Simple Moving Averages (SMAs), confirming bullish momentum.
- Strategy: Buy
- Target: Rs 1,650, Rs 1,755
- Stop-Loss: Rs 1,480
Manappuram Finance
Manappuram Finance is in a strong uptrend across all timeframes, forming higher tops and bottoms. The stock has surpassed the critical resistance zone at Rs 236 with a surge in volumes, indicating strong participation.
- Strategy: Buy
- Target: Rs 255, Rs 265
- Stop-Loss: Rs 233
HDFC Life Insurance Company
HDFC Life has broken out of a four-year consolidation phase, decisively breaching the Rs 750–760 resistance zone. Volume analysis supports the move, showing strong buying interest during upswings and lower volumes during downswings.
- Strategy: Buy
- Target: Rs 830
- Stop-Loss: Rs 751
Wockhardt
Wockhardt witnessed a sharp rebound after forming a base near the 200-day SMA and recently broke out of a symmetrical triangle pattern with a significant surge in volume, confirming a price–volume breakout.
- Strategy: Buy
- Target: Rs 1,600
- Stop-Loss: Rs 1,390
Deepak Fertilisers and Petrochemicals Corporation
Deepak Fertilisers has broken out of both a 104-week and a 28-week base-on-base pattern with rising volumes, confirming the breakout. The stock is now targeting an upside of Rs 1,700.
- Strategy: Buy
- Target: Rs 1,700
- Stop-Loss: Rs 1,400
Sundaram Finance
Sundaram Finance is on the verge of a bullish breakout from a 35-week-long Cup and Handle pattern. The volume profile indicates institutional accumulation.
- Strategy: Buy
- Target: Rs 5,935
- Stop-Loss: Rs 5,000
GlaxoSmithKline Pharmaceuticals
GlaxoSmithKline Pharmaceuticals has broken out of a 39-week-long bullish Cup and Handle pattern on the weekly charts. Volumes surged during the bottom formation and the rally towards the neckline, indicating accumulation.
- Strategy: Buy
- Target: Rs 3,800
- Stop-Loss: Rs 3,200
Disclaimer
The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
