Market Outlook - Technical - June 26, 2021 - ICICI Direct

- Nifty recouped last week's losses and concluded expiry week at 15860, up 1.1%. Broader market performed in tandem with the benchmark

- We expect Nifty to trade with positive bias and head towards 16100 levels in coming weeks.

- Going ahead, we do not expect Nifty to breach its strong demand zone of 15600-15500 levels. Therefore any dips from hereon would present incremental buying opportunity to construct quality portfolios

- Our constructive stance validated by the bottom up index approach as: a) IT continues to show resilience, b) Slower pace of retracement in Bank Nifty, c) Metal index maintained the rhythm of sustaining above 10 weeks EMA since May 2020

- Sectorally, we expect relative outperformance from IT, banking, Auto, and Metal which are expected to lead the next leg of up move

- Our preferred large caps are Reliance, TCS, Axis Bank, HDFC Life, Tata Steel, Tata Motors, Ultratech Cement while, in midcaps we like L&T Infotech, Vardhman Special Steel, Canara Bank, NRB Bearing, KEC International, Indian Hotel, Aditya Birla Fashion & HG Infra

Source : Equity Bulls

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