Anand Rathi Analyst Offers Investment Strategies for Three Key Stocks

Nifty 50 Ends Week on a Negative Note Amid FII Selling and Geopolitical Developments

The Nifty 50 index ended the week on a negative note, falling nearly 1% for the week ended June 5. This marks the second consecutive week of losses for the index, which traded in a range of 23,700 to 23,150. The decline is attributed to persistent Foreign Institutional Investor (FII) selling, fluctuations in crude oil prices, and caution ahead of the RBI policy announcement.

According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, the 23,300-23,100 zone continues to represent a critical demand area. As long as this support band remains intact, the broader market structure continues to favor a constructive outlook. However, on the upside, 23,800 remains the immediate hurdle for the index, and a sustained breakout above this level could trigger renewed buying interest and pave the way for a move towards the 24,100 zone.

The banking index continues to exhibit a stronger technical structure relative to the broader market. As long as the 52,800-53,200 support zone remains protected, the prevailing trend is expected to remain favorable for the bulls. On the upside, 55,500 continues to be the key resistance level to monitor. A decisive breakout above this threshold could accelerate bullish momentum and potentially drive the index towards the 56,000-58,000 zone over the coming weeks.

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Jigar Patel recommends buying the following three stocks for the next 1-2 weeks. Zen Technologies recently witnessed a decisive breakout above a major resistance zone, signaling a potential continuation of the ongoing uptrend. Key momentum indicators, including the DMI, Stochastic Oscillator, and MACD, are also aligned positively, indicating sustained buying interest.

Voltas, on the other hand, formed a multiple bottom pattern in the ₹1,200-1,250 zone, indicating a strong base formation and significant buying interest. A bullish divergence is visible on the daily Stochastic oscillator, suggesting that downside momentum is weakening and a potential reversal may be underway.

Varun Beverages (VBL), however, is facing strong resistance near the 61.8% Fibonacci retracement of its previous up move, which also coincides with a flat Ichimoku Cloud resistance zone. This confluence of resistance levels suggests that the ongoing pullback may continue unless the stock manages to decisively overcome this hurdle. Momentum indicators are also supporting the negative outlook, with bearish divergences visible on the MACD, DMI, and Stochastic Oscillator.

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