Trade Update: Dixon Technologies, SBI, Adani Energy Solutions, Infosys, Bank of India and Other Stocks Under the Spotlight

Market Rallies, Extends Gains for Second Consecutive Session

The benchmark indices recorded a strong rally of over 1.3 percent on May 25, extending their upward move for a second consecutive session. Market breadth favored the bulls, with 2,054 shares advancing against 942 declining shares on the National Stock Exchange (NSE).

Key Stocks to Watch

Several stocks are expected to remain in focus in the coming sessions, driven by positive technical indicators and favorable market conditions.

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Aarti Industries

Aarti Industries has witnessed a strong breakout above its major Yearly Camarilla (R4) and Floor Pivot resistance levels (R1) on the monthly chart. The stock has also successfully retested the breakout zone, which is now expected to act as a strong support area. Momentum indicators, including MACD, RSI, and DMI, continue to indicate positive strength and improving bullish momentum.

Dixon Technologies

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Dixon Technologies has witnessed a strong bullish breakout after surpassing its previous swing high (B point) on a closing basis. The stock appears to be progressing toward the completion of a bullish AB=CD pattern, with the projected D point placed near the Rs 13,000-12,950 zone. Momentum indicators continue to support the positive outlook, with RSI, MACD, and DMI indicating strengthening bullish momentum and an improving trend structure.

Bharat Electronics

Bharat Electronics has formed a strong base near the Rs 405-410 zone, which coincides with the 78.6 percent retracement level and the 1.618 extension level. Momentum indicators, including MACD and RSI, indicate exhaustion at lower levels, suggesting that selling pressure may be gradually weakening. The stock is also showing signs of stability around the support zone, which could pave the way for a potential rebound.

SBI

State Bank of India has fallen sharply, especially following its quarterly results announcement. However, the stock now appears to have reversed course, forming higher tops and bottoms on the daily charts, along with a decrease in open interest in the futures segment, which indicates short covering. There are still accumulated short positions in this stock, and the options data indicate significant Put additions at lower levels in the June series.

Infosys

The overall IT sector has accumulated a large number of short positions this calendar year. Infosys, too, has witnessed a similar trend. However, over the past week, the majority of stocks within the sector have held on to their recent swing lows and are also showing positive divergence, indicating a higher probability of short covering.

Dr Reddy's Laboratories

The Nifty Pharma Index has performed quite well in the May series; however, Dr Reddy's has not outperformed so far, despite generally being one of the top-performing stocks. The futures data for the stock indicate a buildup of long positions, and hence an upside breakout appears likely.

Adani Energy Solutions

Adani Energy Solutions has shifted into an uptrend, recording a sequence of higher highs on the daily chart following a successful rebound from its 40-day EMA. From an Elliott Wave perspective, the price is currently progressing within Wave V, which is displaying an internal impulsive subdivision.

Bank of India

Bank of India has established a firm base around its medium-term support zone of Rs 136 and has staged a breakout from a triangle consolidation during Monday's session, securing a decisive close above its key daily moving averages.

Ambuja Cements

Ambuja Cements has successfully rebounded from its medium-term structure in March 2026 and has completed a 61.8 percent Fibonacci retracement of its prior rise. The stock is currently consolidating around the Rs 446 mark, a pivotal intersection of the 40-day EMA and the upper boundary of its declining channel.