Trading guide, June 12: Nifty awaits fresh cues; GAIL, M&M on analyst radar

Nifty outlook: A fresh trigger is needed for the index to decisively surpass the 25,200 hurdle, analyst says

Nifty outlook: 

Markets remained volatile for yet another session and ended marginally in the green amid a lack of fresh triggers. After a flat start, the Nifty gradually moved higher in the first half and tested the resistance at 25,200, but failed to sustain the momentum and finally settled at the 25,141 level. 

 

On the sectoral front, the mixed trend persisted, with IT, pharma, and energy ending in the green, while FMCG and banking closed marginally lower. Meanwhile, the broader indices witnessed profit-taking, with both the midcap and smallcap segments losing nearly half a per cent each.

 

A fresh trigger is needed for the Nifty to decisively surpass the 25,200 hurdle; otherwise, the ongoing consolidation may continue. Participants are now closely watching the upcoming macroeconomic data, particularly CPI inflation and updates on trade deals, for further cues. Amid this backdrop, we recommend maintaining a stock-specific approach and focusing on prudent trade management, especially considering the overbought conditions in several midcap and smallcap stocks.  Check Stock Market Updates Today LIVE  

 

Stocks Recommendations

GAIL (India) Limited | LTP: ₹200.09 | Buy | Target: ₹215 | Stop-loss: ₹193

Power and energy-related stocks are witnessing renewed buying interest, and GAIL is moving in line with this positive trend. The stock has been trading within a broad consolidation range, forming a cup and handle pattern, while consistently holding above the confluence of its key moving averages. 

 

The recent price action, combined with the buoyancy in the sector, suggests a likely continuation of the uptrend after a brief pause. Participants may consider initiating long positions as per the levels mentioned. 

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HCL Technologies Limited | LTP: ₹1,721.90 | Buy | Target: ₹1,830 | Stop-loss: ₹1,665

Renewed buying interest is visible across IT stocks, and HCL Technologies is taking the lead among the heavyweights. The stock has broken out of an Inverted Head & Shoulders pattern—a classic trend reversal formation—accompanied by a noticeable rise in volumes. The breakout, along with the overall strength in the IT sector, indicates that the stock has likely concluded its six-month corrective phase and is now poised to enter a new uptrend. 

Mahindra & Mahindra Limited | LTP: ₹3,080.70 | Buy | Target: ₹3,300 | Stop-loss: ₹2,980

Rate-sensitive sectors are witnessing increased traction, and within the auto space, Mahindra & Mahindra is offering a fresh buying opportunity. The stock has broken out of a flag pattern, signalling a continuation of the prior uptrend. Additionally, the momentum indicator has confirmed a bullish crossover, further reinforcing the positive outlook. Based on the price structure and supporting technical indicators, we recommend going long within the specified range.

 

(Disclaimer: This article is by Ajit Mishra, SVP-research, Religare Broking. Views expressed are his own.) 

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