Nifty has started the week under pressure after ending last week with gains of 1.6%, closing decisively above the 25,000 mark, thanks to Friday’s surge. What should investors do now?
The ongoing Israel-Iran conflict remains a key risk factor, with the potential to disrupt global energy markets and inject volatility into equities. Nifty’s close above the 25,000 mark at 25,112.40 represented a significant technical breakout, ending a three-day losing streak and reflecting renewed market optimism. This level has previously acted as a formidable resistance, with the index struggling to maintain momentum above it during earlier attempts since May.
However, the sustainability of this breakout will depend on continued foreign inflows, stable global risk sentiment, and the absence of major geopolitical shocks.
Immediate resistance is now seen in the 25,300–25,350 zone, with support having shifted upwards to the 24,750–24,900 region.
What are the key levels for Nifty and Bank Nifty this week?
For Nifty, immediate support is established in the 24,750–24,900 range, while resistance is expected at 25,300–25,350. Market participants should monitor these levels closely, as any breakout above resistance could signal further upside, whereas a reversal near these points may indicate short-term consolidation or correction.
Bank Nifty finished the week at 56,252.85 and reflected robust buying interest across major banking stocks. The index’s immediate support is located between 55,700 – 55,500, with resistance in the 56,500–56,700 zone. Positive momentum is being driven by sector heavyweights like HDFC Bank and ICICI Bank, alongside supportive policies from the Reserve Bank of India and renewed FII inflows.
IT stocks have been in action this week and with Accenture beating third-quarter revenue estimates, is it time to go “hammer & tongs” on tech stocks?
Accenture reported an 8% year-on-year rise in Q3 FY25 revenue to $17.7 billion, driven by strong demand for AI services, and raised its full-year revenue growth guidance. Despite this robust performance, the company’s stock fell 7% post-earnings due to a decline in new bookings and a cautious outlook, especially regarding government spending. Indian IT stocks, which often mirror Accenture’s performance, saw mixed reactions on Friday—Infosys and Wipro closed lower on the NYSE, reflecting broader sectoral caution.
While the IT sector remains in focus due to emerging technology themes like generative AI, global tech spending is under pressure from economic uncertainty and shifting US policies. Additionally, Indian IT stocks have experienced persistent FII outflows, adding to the cautious sentiment. Given these dynamics, it may be premature to adopt an aggressive stance on the sector. A selective and research-driven approach is recommended, rather than a blanket bullish strategy.
If you are recommending IT stocks, where would your money go—Tier-1 or Tier-2, and which would be your picks?
When considering the IT sector in the current environment, Tier-1 companies such as TCS, Infosys, and HCL Technologies are often noted for their stability, diversified business models, and strong cash flows. Their scale allows them to invest in emerging technologies like AI and cloud, which can be advantageous during periods of global uncertainty. However, these companies are currently trading at premium valuations and face challenges from a slowdown in global demand.
On the other hand, Tier-2 IT firms like Persistent Systems, Coforge, Mphasis, and Mindtree have shown impressive growth in select technology verticals and tend to be more agile in adapting to new market trends. While they offer higher growth potential, they also come with increased volatility and are more sensitive to client concentration and margin pressures.
With global IT spending growth showing signs of moderation and foreign investor sentiment remaining cautious, some market participants are adopting a balanced approach—focusing on the stability of Tier-1 companies while keeping an eye on high-quality Tier-2 names that are demonstrating strong execution and innovation. This perspective reflects the current dynamics within the sector, where both stability and selective growth opportunities are being weighed carefully.
While the FII trends in June have been negative so far, the financial services sector has returned with a bang, with FII buying to the tune of Rs 4,685 crore in the first fortnight of June. The energy sector is another major recipient at Rs 1,200 crore. How do you view this development?
FIIs have turned net buyers in the first half of June, channeling significant inflows into financials (Rs 4,685 crore) and energy (Rs 1,200 crore), reversing the earlier trend of outflows. This renewed interest reflects growing confidence in India’s economic prospects and the supportive policy stance of the RBI. Financials and energy are viewed as long-term structural plays, benefiting from domestic growth drivers and global demand. Meanwhile, sectors like FMCG, telecom, and IT have seen outflows, indicating selective FII participation.
Sustained FII interest in financials and energy can bolster market sentiment and drive index performance, but continued monitoring of macro and geopolitical risks is essential.
Midcaps and smallcaps have continued to outperform largecaps over the last month, with double-digit returns at the index level versus Nifty’s 1.7%. Is this exuberance or stock picking in your assessment?
Midcap and smallcap stocks have outperformed largecaps delivering double-digit returns compared to the Nifty’s modest gains. This outperformance is driven by a combination of factors: sector rotation, strong stock selection, and the agility of smaller companies to capitalize on emerging growth themes. Historically, midcaps and smallcaps have delivered higher returns than largecaps, but with greater volatility and risk.
The current rally is supported by reasonable valuations and robust domestic growth, but pockets of exuberance are evident, raising the risk of sharp corrections if sentiment shifts. Investors should remain focused on quality, growth visibility, and disciplined risk management, as excessive exuberance in these segments can lead to heightened volatility and potential drawdowns.
There were some big winners this week like Swiggy, Aditya Birla Capital and BEML while Hindustan Zinc, Concord Biotech and Adani Power were among the worst losers. What should investors do with them along with Raymond post the carving out of the realty business?
We can answer this by checking factor scores for these stocks using our Share.Market-powered research, which evaluates them across five key factors: Momentum, Value, Sentiment, Volatility, and Quality.
Each stock is scored out of 5 on these factors, helping investors assess price trends, fair valuation, market perception, risk levels, and financial strength. By using these insights, investors can make informed decisions and identify strong opportunities in the current market.
Aditya Birla Capital -Factor Analysis Snapshot
Momentum: 5/5 – Strong Outperformer
Aditya Birla Capital Ltd. is demonstrating robust momentum, significantly outperforming the market in recent sessions. The stock’s price action reflects strong investor interest and consistent upward movement, positioning it as a leader among its peers.
Value: 5/5 – Highly Undervalued
The stock is considered highly undervalued relative to its fundamentals. This suggests that the current market price does not fully reflect the company’s intrinsic value, offering potential upside for value-focused investors.
Quality: 1/5 – Poor Quality
Despite strong momentum and value, the company scores low on quality metrics. This indicates concerns regarding financial health, operational performance, or profitability, which investors should carefully consider before making decisions.
Volatility: 5/5 – Low Price Fluctuation
Aditya Birla Capital Ltd. exhibits very low price volatility, suggesting stable price movements and reduced risk of sharp price swings. This stability can be attractive to risk-averse investors seeking steady performance.
Sentiment: 4/5 – Analysts are Bullish
Market sentiment is positive, with analysts maintaining a bullish outlook on the stock. This reflects confidence in the company’s prospects and continued support from the investment community.
BEML – Factor Analysis Snapshot
Momentum: 4/5 – Outperformer
BEML Ltd. is displaying strong momentum, consistently outperforming the broader market. The stock has experienced significant upward movement, as reflected in its recent price surge and positive trend, indicating sustained investor interest and robust price action.
Value: 2/5 – Somewhat Expensive
The stock appears somewhat expensive relative to its fundamentals. Current valuations suggest that investors are paying a premium, possibly due to the company’s growth prospects or recent performance, which may limit immediate value opportunities.
Quality: 4/5 – Good Quality
BEML Ltd. demonstrates good quality, backed by solid financial health and operational performance. The company maintains strong fundamentals, which are reflected in its consistent profitability and efficient management.
Volatility: 4/5 – Low Price Fluctuation
The stock exhibits low price volatility, indicating stable price movements and reduced risk of sharp fluctuations.
Hindustan Zinc – Factor Analysis Snapshot
Momentum: 2/5 – Underperformer
Hindustan Zinc Ltd. is currently underperforming the market, with weak momentum relative to its peers. The stock has not demonstrated significant upward movement in recent sessions, reflecting subdued investor interest and limited positive price action.
Value: 5/5 – Highly Undervalued
The stock is considered highly undervalued based on its fundamentals. This suggests that the current market price does not fully capture the company’s intrinsic value, offering potential upside for value investors seeking bargains.
Quality: 5/5 – Excellent Quality
Hindustan Zinc Ltd. boasts excellent quality, supported by strong financial health and consistent operational performance. The company’s fundamentals are robust, indicating reliable profitability and effective management.
Volatility: 5/5 – Low Price Fluctuation
The stock exhibits very low price volatility, indicating stable price movements and reduced risk of sharp fluctuations. This stability is appealing to investors who prefer steady returns with minimal risk exposure.
Sentiment: 3/5 – Neutral Analyst Sentiment
Market sentiment is neutral, with analysts neither strongly bullish nor bearish on the stock. This reflects a balanced outlook from the investment community, with no clear consensus on the near-term direction.
Concord Biotech – Factor Analysis Snapshot
Momentum: 2/5 – Underperformer
Concord Biotech Ltd. is currently underperforming the market, with weak momentum in recent sessions.
Value: 2/5 – Somewhat Expensive
The stock appears somewhat expensive relative to its fundamentals. This suggests that investors are paying a premium for the company, which may limit immediate value opportunities despite its operational strengths.
Quality: 5/5 – Excellent Quality
Concord Biotech Ltd. demonstrates excellent quality, supported by strong financial health and robust operational performance. The company’s fundamentals are solid, indicating consistent profitability and effective management.
Volatility: 3/5 – Slight Price Fluctuation
The stock exhibits moderate price fluctuations, suggesting a balanced risk profile with neither high nor exceptionally low volatility. This indicates a reasonable level of price stability for investors
Adani Power – Factor Analysis Snapshot
Momentum: 4/5 – Outperformer
Adani Power Ltd. is demonstrating strong momentum, consistently outperforming the market in recent sessions. The stock’s price trend reflects robust investor interest and sustained positive price action, positioning it as a leader within its sector.
Value: 5/5 – Highly Undervalued
The stock is considered highly undervalued relative to its fundamentals. This suggests that the current market price does not fully reflect the company’s intrinsic value, offering significant upside potential for value-oriented investors.
Quality: 3/5 – Average Quality
Adani Power Ltd. maintains average quality, with financial and operational metrics that are solid but not exceptional. While the company is stable, there may be areas for improvement in profitability or efficiency compared to top-tier peers.
Volatility: 4/5 – Low Price Fluctuation
The stock exhibits low price volatility, indicating stable price movements and reduced risk of sharp fluctuations.
Sentiment: 5/5 – Analysts are Very Bullish
Market sentiment is highly positive, with analysts expressing a very bullish outlook on the stock. This reflects strong confidence in the company’s prospects and continued support from the investment community
Raymond: Post-Realty Carve-Out—Investor Strategy
Raymond’s demerger of its real estate business is a major corporate event. The sharp 65–66% drop in Raymond Ltd share price is a technical adjustment reflecting the transfer of value to the newly created Raymond Realty entity, not a sign of fundamental weakness. Existing shareholders will receive one share of Raymond Realty for every share held in Raymond Ltd, ensuring that overall value is preserved across the two entities.
Raymond Realty is set to be listed on July 1, 2025, with a robust pipeline—six new residential projects in Mumbai Metropolitan Region (MMR) this fiscal, targeting ₹14,000 crore in sales bookings. The company has a land bank with a total revenue potential of ₹40,000 crore and is pursuing an asset-light growth model through joint development agreements. Raymond Realty starts its independent journey with a net cash surplus and strong margins, positioning it as a focused real estate growth story.
(Disclaimer: Investments in securities are subject to market risks. Read all the related documents carefully before investing. All investors are advised to conduct their own independent research into investment strategies before making an investment decision. Past performance does not guarantee future returns.)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
