Market Outlook: Technical - June 5, 2021

By Dharmesh Shah - Head - Technical, ICICIdirect

- Nifty extended its winning streak thereby achieving our target of 15700, up 1.5%. Broader market indices outperformed with gains in excess of 2.4% each

- Nifty remains in its structural uptrend and next milestone for June 2021 is placed at 16100, India vix declined to six month lows indicating subsiding anxiety related COVID implication

- We believe, the upward journey will be nonlinear or zigzag and buy on declines strategy should work well as strong support exist at 15200. Broader market outperformance to extend as Smallcap index is expected to challenge life highs

- BFSI, Auto, IT, Consumption and Infra to lead the rally

- In large caps, we prefer Infosys, Reliance Industries, Bajaj Finance, Kotak bank, Adani Ports, Titan, GAIL, while, Escort, Ashok Leyland, Trent, JK Tyres, Voltas, Concor , Hindustan Zinc, Thermax, LTI, Mahindra Life, Nocil are preferred midcap picks

Source : Equity Bulls

Keywords