Market Watch: Key Trades to Consider for Adani Energy Solutions, AIA Engineering, NALCO, Infosys, Zydus Lifesciences, and Other Stocks on June 2.

Market Update: Benchmark Indices Fall 0.7 Percent Amid Weakness in Market Breadth

The benchmark indices came under selling pressure for the fourth consecutive session, falling 0.7 percent on June 1 amid weakness in market breadth. Bears dominated approximately 2,091 shares, while only 924 shares were supported by bulls. Selling pressure could intensify if the market decisively breaks the low recorded in May.

Bullish Outlook for Key Stocks

Several stocks are expected to see a bullish trend in the coming weeks, based on their technical analysis. JSW Energy, with a current market price of Rs 583.45, has recently delivered a breakout on the weekly chart, signalling a positive shift in trend and momentum. Supporting this bullish setup, key momentum indicators such as the RSI, MACD, and DMI are all showing strength, indicating that buying interest remains intact. Traders may consider entering long positions in the Rs 585-575 zone, with a target of Rs 680.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Adani Energy Solutions has also seen a breakout above the previous swing high, indicating a continuation of the bullish trend and strengthening price momentum. The overall technical structure of Adani Energy Solutions remains strong, making any near-term correction a potential buying opportunity. Traders may consider entering long positions in the Rs 1,500-1,450 zone, with a target of Rs 1,650.

AIA Engineering has seen a breakout above the falling trendline, accompanied by a surge in volumes, signals a potential shift in momentum and strengthening bullish sentiment in AIA Engineering. The overall technical structure remains constructive, suggesting that any dip could provide a favourable entry opportunity. Traders may consider entering long positions in the Rs 4,500-4,400 zone, with a target of Rs 5,000.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Analysts' Views

• Jigar S Patel, Senior Manager - Equity Research at Anand Rathi, recommends buying JSW Energy, Adani Energy Solutions, and AIA Engineering.
• Vidnyan S Sawant, Head of Research at GEPL Capital, recommends buying National Aluminium Company.
• Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities, recommends buying Infosys.
• Somil Mehta, the Head of Retail Research at Mirae Asset ShareKhan, recommends selling Godrej Properties and APL Apollo Tubes.
• Nippon Life India Asset Management and Zydus Lifesciences are also expected to see a bullish trend in the coming weeks.

Short-Term Trading Ideas

The following are some short-term trading ideas based on the technical analysis of the stocks mentioned above: