NIFTY Index Chart Analysis

The Nifty 50 benchmark index had been awaiting a major trigger to break out of its consolidation phase, which had been confined within the range of the sizable bullish candle formed on May 15. That much-needed trigger finally came in the form of the RBI’s monetary policy announcement.

The Reserve Bank of India delivered a deeper-than-anticipated 50 basis point cut in the repo rate, reducing it to 5.5 per cent, a near three-year low. This was accompanied by a surprise 100 basis point cut in the Cash Reserve Ratio (CRR). These decisive moves signalled a clear shift in the central bank’s focus from inflation management to reviving economic growth.

In response, the Nifty witnessed a strong up-move on Friday, followed by a gap-up on Monday, breaking out of the consolidation zone it had been stuck in since May 15. However, despite the breakout, the index did not see the kind of follow-through buying that typically confirms a strong trending move. At the same time, it managed to stay above the consolidation zone and even touched its upper boundary, continuing to hover near those levels.

Adding to the positive undertone, market volatility dropped sharply over 25 per cent from the May 27, 2025 peak. This decline in volatility indicates a reduction in uncertainty and suggests a shift towards a risk-on sentiment.

From a technical perspective, the next major upside target for the Nifty is around 25,350 - the 78.6 per cent Fibonacci retracement level of the correction from the all-time high to the April low. Sustained movement above this level could push the index towards its all-time high of 26,226, which also aligns with the measured move target based on the recent consolidation pattern.

On the downside, the 24,950– 25,040 zone is expected to offer immediate support. As long as the index remains above this range, the bullish bias is likely to stay intact. A close below this support zone could drag the index back into consolidation, in which case a retest of the 20-DMA, currently placed at 24,825, may be expected.

Momentum indicators reinforce the positive outlook. The RSI has entered bullish territory on both the daily and weekly charts. The weekly MACD is also in buy mode, and crucially, no negative divergences are visible across timeframes, offering further confidence in the market’s direction.

Overall, the upcoming fortnight may see the index trade with a positive bias. However, a convincing move above the 25,350 level is essential for a sustained upward trend. Until then, the market could continue to trade within a defined range.

It’s also worth noting that some sectors have rallied too quickly in recent sessions. At this stage, it is prudent to focus on protecting profits rather than chasing fresh highs. New positions should be limited to stocks displaying robust technical structures and relative strength.

STOCK RECOMMENDATIONS
VISHNU CHEMICALS LTD. ...................... BUY .......................... CMP ₹554.80
BSE Code : 516072
Target 1 .... ₹640 
Target 2 ..... ₹670 
Stoploss....₹522 (CLS)

Vishnu Chemicals is one of India’s largest manufacturers of Chromium and Barium chemicals. The company’s supply footprint spans all major geographies, including Asia, China, Southeast Asia, Europe, the UK, North, South, and Central America, Africa, among others.

Technically, the stock of Vishnu Chemicals has moved above the pivot point of a 31-week long Stage 1 consolidation pattern. As the stock is trading near its all-time high, it remains above all short- and long-term moving averages, all of which are trending upwards in the desired sequence.

The stock meets most of the CANSLIM characteristics. It has an EPS Rank of 92, a great score indicating consistent earnings performance; an RS Rating of 87, which is good and reflects outperformance compared to other stocks; Buyer Demand at A-, signalling recent strong buying interest; a Group Rank of 36, indicating it belongs to a strong industry group (Chemicals – Specialty); and a Master Score of B, which is close to the best possible.

Considering the above factors, we recommend buying the stock with a stop loss of ₹522 with a target of ₹640–₹670.

DLF LTD. ....................................... BUY ............................... CMP ₹867.10
BSE Code : 532868
Target 1 ...... ₹930 
Target 2 ..... ₹955 
Stoploss.....₹838 (CLS)

DLF Limited is one of India’s largest real estate developers, with a track record spanning over 75 years. As of December 2024, the company has developed more than 350 million square feet of space. DLF is credited with developing several prominent urban colonies in Delhi, including South Extension, Greater Kailash, Kailash Colony, and Hauz Khas, as well as DLF City in Gurgaon, one of Asia’s largest private townships.

Technically, the stock has witnessed a breakout from a falling trendline formed by connecting major swing highs since September 2024. The breakout was supported by above-average volume and a sizable bullish candle.

From an O'Neil Methodology standpoint, the stock has an EPS Rank of 94, a great score indicating earnings consistency; an RS Rating of 72, which is fair, reflecting recent price performance; Buyer Demand at A+, showing strong investor interest; a Group Rank of 50, suggesting it belongs to a fair industry group (Real Estate); and a Master Score of B, which is close to the top tier.

Considering these factors, we recommend buying the stock with a stop loss at ₹838 and a target of ₹930– ₹955.

*LEGEND:  ◼ EMA - Exponential Moving Average.  ◼ MACD - Moving Average Convergence Divergence  ◼ RMI - Relative Momentum Index  ◼  ROC - Rate of Change  ◼ RSI - Relative Strength Index
(Closing price as of June 10, 2025)

Disclaimer : Above recommendations are based on various technical parameters and any fundamental input has not been considered for the recommendations. Follow strict stop loss for the recommendation.