IT Sector Leads Market Amid Volatility — June 18 Newsletter Gives You the Edge

IT Sector Leads Market as Pharma Slides & Geopolitical Risks Rattle Sentiment

On a choppy day for Dalal Street, the IT sector leads market momentum while broader indices closed in the red. The Nifty 50 slipped by 100 points to 24,846.20 and the Sensex dropped 267 points, ending at 81,528.63. Pharma stocks took a beating after Donald Trump announced proposed tariffs on drug imports — triggering a wave of selling across the sector.

Meanwhile, escalating tensions in the Middle East — particularly the Israel-Iran conflict — continued to cast a shadow over investor sentiment, weighing on sectors like realty, metals, and oil & gas. Smallcap and midcap indices also felt the pressure, marking a broad-based pullback. Yet amid the uncertainty, IT stocks stood out, with the Nifty IT index rising by 248 points to 39,321.95 — the sole green sector on the board.

What’s inside this newsletter:
→ Nifty Technical Analysis
→ News & Stock Impact
→ Technical Radar
→ IPO Update
→ Smallcap Pick of the Day

Let’s dive into today’s market pulse.

Nifty Technical Analysis as IT sector leads market

Despite a red close for benchmark indices, the broader setup remains constructive — especially with strength in the IT pack. As the IT sector leads market sentiment today, Nifty remains range-bound but is showing signs of coiling up for a potential breakout.

Market Snapshot

• Current Price: ₹24,853.40
• Change: -93.10 points (-0.37%)
• Volume: 242.42M
• 9 EMA: ₹24,764.30 (Price is slightly above the EMA – mild bullish bias)

Chart Structure & Price Action

Key Observations:

• Nifty has been in a sideways consolidation between ₹24,450 and ₹25,100 for over 10 sessions.
• This tight range indicates market indecision or energy building up before a directional move.
• A strong base has formed at ₹24,450–₹24,460, which has held multiple times — suggesting strong demand.

Resistance: ₹25,100–₹25,150
Support: ₹24,450–₹24,460
Previous ATH: ₹26,266

🔺 Bullish Breakout Scenario

• Trigger: Sustained move above ₹25,100 with strong volume
• Target 1: ₹25,500
• Target 2: ₹26,250–₹26,300
  Backed by bullish sector rotation, especially as the IT sector leads market resilience.

🔻 Bearish Breakdown Scenario

• Trigger: Close below ₹24,450
• Target 1: ₹24,100
• Target 2: ₹23,800
  Watch for heavy volumes on breakdown for confirmation.

Technical Indicators Summary

Indicator	Signal	Remarks
Price vs 9 EMA	Bullish	Price > EMA = short-term strength
Volume Pattern	Neutral	No significant breakout volume yet
Chart Pattern	Sideways Box	Classic compression → expansion setup
Trend Structure	Bullish Bias	Higher lows remain intact

Professional Trade Setups

1st Scenario – Breakout Trade (Momentum):

• Buy Above: ₹25,110
• SL: ₹24,850
• Target: ₹25,500 / ₹26,300

2nd Scenario – Breakdown Trade (Reversal):

• Sell Below: ₹24,450
• SL: ₹24,750
• Target: ₹24,100 / ₹23,800

3rd Scenario – Range Trader (Mean Reversion):

• Buy: Near ₹24,450
• Sell: Near ₹25,100
• Strategy: Continue trading the range until clear breakout or breakdown

Conclusion: Nifty Outlook

• Short-Term Bias: Sideways-to-Bullish
• Medium-Term Bias: Bullish if ₹25,100 is breached
• Crucial Levels to Watch:
  • Breakout: ₹25,110+
  • Breakdown: ₹24,450–

With the IT sector leading market sentiment and Nifty respecting key levels, a directional breakout could be on the horizon. Traders should stay nimble and watch volumes closely around the range boundaries.

🗞 News & Stock Impact — June 18 Edition

📌 SEBI Approves NSE Expiry Shift to Tuesdays

What happened:
SEBI has approved the National Stock Exchange’s proposal to shift its weekly expiry for equity derivatives from Thursday to Tuesday. In a reciprocal move, the BSE Sensex derivatives will now expire on Thursdays, instead of their earlier Tuesday slot.

Why it matters:
This change is aimed at reducing volatility clustering on Thursdays, which was previously a common expiry day for both NSE and BSE contracts. By separating the expiries, it encourages more balanced volumes across both exchanges and aligns with global practices.

Stock Market Impact:

• Likely to benefit BSE Ltd. (NSE: BSE) — as Thursday expiries can attract more derivative traders.
• NSE-impacted brokers like Angel One, ICICI Securities, IIFL Securities may adjust their option strategies accordingly.
• Short-term impact: Slight increase in volatility during the initial transition period.

📌 Blackstone-Backed Knowledge Realty Trust Files ₹4,800 Cr IPO

What happened:
Knowledge Realty Trust, a Real Estate Investment Trust (REIT) backed by Blackstone and Sattva Developers, is planning to launch a ₹4,800 crore IPO in July. It has already raised ₹1,400 crore in a pre-IPO round.

Why it matters:
This will be one of India’s largest REIT listings and a big vote of confidence in the commercial real estate market, particularly Grade A office spaces in tech cities.

Stock Market Impact:

• Bullish sentiment for Embassy Office Parks REIT (NSE: EMBASSY), Mindspace Business Parks REIT (NSE: MINDSPACE), Brookfield REIT (BSE: BIRET).
• Real estate developers with commercial exposure like DLF, Prestige Estates, and Brigade Enterprises could benefit from REIT demand spillover.

📌 MCX Soars as Electricity Derivatives Get Greenlight

What happened:
Reports suggest SEBI has approved Multi Commodity Exchange’s plan to launch electricity derivatives by the end of this year. These derivatives will allow businesses to hedge against power price fluctuations, which is critical in an era of energy volatility.

Why it matters:
India lacks a vibrant electricity trading market despite being the world’s third-largest power consumer. Electricity futures will bridge the gap between financial and physical power markets, boosting MCX’s product portfolio.

Stock Market Impact:

• MCX (NSE: MCX): Hit record highs; long-term volume and fee boost anticipated.
• Power sector beneficiaries: Utilities like NTPC, Tata Power, and Adani Energy Solutions may use this for risk management.
• Potential second-order plays: Energy Exchange (IEX) may face competition, but also benefit from ecosystem expansion.

📌 Trump’s Pharma Tariff Warning Shocks Sector

What happened:
Donald Trump, the likely Republican nominee for the U.S. Presidency, stated that he would impose tariffs on imported medicines “very soon”, raising alarm bells for Indian pharmaceutical exporters.

Why it matters:
India exported $12.7 billion worth of medicines to the U.S. in 2024, making it a crucial market. Tariffs could hurt Indian drugmakers’ margins, especially for generics, which already operate on thin profits.

Stock Market Impact:

• Major losers: Sun Pharma, Cipla, Lupin, Dr. Reddy’s, Aurobindo Pharma — all have substantial U.S. revenue exposure.
• Short-term pressure likely, though actual tariffs would depend on post-election clarity.
• Midcap domestic-focused pharma (like Ajanta Pharma, Alkem) may be relatively insulated.

📌 Tier-2 & Tier-3 Cities Set to Drive India’s Retail Investing Boom

What happened:
Demat accounts in India have crossed 200 million, with a significant chunk of new accounts coming from non-metro regions. Rising smartphone usage, mobile trading apps, and vernacular financial content are reshaping the investor base.

Why it matters:
India’s retail investing wave is no longer a metro-only phenomenon. This structural shift is reshaping the way financial services are being delivered and how equity markets behave — with a new breed of young, app-native investors.

Stock Market Impact:

• Fintech enablers: Angel One, 5Paisa Capital, Zerodha-parent (unlisted) benefit from new client growth.
• Depository infra: CDSL, KFin Technologies gain from account creation and IPO rush.
• Content & distribution: Listed players like Nazara (gamified learning) and Network18 (vernacular financial content) may indirectly benefit.

📌 Karnataka, BACL, ANSR Launch Global Innovation Hub at Airport City

What happened:
The District I Innovation Hub was launched at Bengaluru Airport City, with backing from Karnataka Govt, BACL, and ANSR. This deep-tech innovation park will focus on AI, quantum computing, blockchain, aerospace, and space tech.

Why it matters:
It cements Bengaluru’s role as a global innovation hotspot, attracting investments in deep tech and high-end R&D.

Stock Market Impact:

• Indirect beneficiaries: Tech park developers like Embassy, RMZ, Prestige Estates.
• Deep-tech enablers: AI/ML firms like Tata Elxsi, Persistent Systems, Cyient, and LTTS may see long-term interest.

Technical Radar — Breakout Play Amid Nifty Market Recovery

Stock Focus: Happiest Minds Technologies Ltd
CMP: ₹668.45 | Volume: 25.04M | 9 EMA: ₹599.38

As the broader market shows signs of IT sector leads market recovery, tech stocks are seeing renewed momentum — and Happiest Minds Technologies is flashing a compelling breakout setup.

Technical Breakdown

Reversal Confirmed
After a sharp March–April correction, the stock reversed trend in April, forming higher highs and higher lows inside a rising channel.

Flag Breakout Pattern
The stock has broken out of this channel with a powerful bullish candle, backed by heavy volume, signaling institutional participation.

Above EMA
Current price is far above its 9-day EMA (₹599), confirming short-term strength.

Volume Spike = Conviction
Volume today is well above average, validating this as a high-conviction breakout — not just retail-driven noise.

Price Targets & Trade Strategy

Short-Term Trade (1–7 Days)

• Target 1: ₹687–₹690 (trendline resistance)
• Target 2: ₹715–₹725 (if breakout sustains)
• Stop-loss: ₹632
• Risk-Reward: 1.5:1 to 2.5:1

Swing View (1–4 Weeks)

• Target 1: ₹725
• Target 2: ₹765–₹780
• Stop-loss: ₹590
• Risk-Reward: 2:1 to 3:1

Analyst Take

• Bullish Momentum: The breakout from the flag pattern and rise above ₹632 suggests a resumption of the uptrend.
• Market Synergy: Happiest Minds is benefiting from overall IT sector leads market recovery, especially in the IT sector.
• Volume Confidence: Smart money appears to be positioning early — a good sign for follow-through buying.

⚠️ Risk Alert: A close below ₹632 negates the breakout — consider exiting if that level fails.

IPO Update — What’s Buzzing in the Primary Market?

Amid the broader IT sector leads market recovery, the IPO market is witnessing high retail and institutional interest, especially in the SME segment. Here’s a snapshot of key performers and upcoming issues to keep an eye on:

IPO Name	GMP (₹)	% Gain	Issue Price (₹)	Lot Size	Listing Date
Eppeltone Engineers	65	50.78%	128	1,000	24 June
Influx Healthtech	40	41.67%	96	1,200	25 June
Arisinfra Solutions	25	11.26%	222	67	25 June
Mayasheel Ventures	6	12.77%	47	3,000	27 June

Upcoming SME IPOs Opening Soon

IPO Name	IPO Window	Lot Size	Estimated Listing
Globe Civil Projects	24–26 June	211	1 July
Safe Enterprises	20–24 June	1,000	27 June
Aakaar Medical Tech	20–24 June	1,600	27 June
AJC Jewel	23–26 June	1,200	1 July

📢 Quick Take
While GMP gives a hint about listing sentiment, investors should consider fundamentals, industry outlook, and subscription strength—especially in a momentum-driven environment like the current IT sector leads market recovery phase.

Check all IPO review Here: All IPO Review and Analysis.

Smallcap Pick of the Day — Bimetal Bearings Ltd

Price: ₹593 | Market Cap: ₹227 Cr | Sector: Auto Ancillaries

As markets witness a Nifty market recovery, under-the-radar quality stocks like Bimetal Bearings Ltd (BBL) present interesting value opportunities for long-term investors.

About the Company

Established in 1961 with technical collaboration from Clevite Inc. (USA) and Repco Ltd. (Australia), BBL is part of the prestigious Amalgamations Group. The company manufactures:

• Engine Bearings
• Bushings
• Thrust Washers
• Bimetallic Strips
• Alloy Powder

It supplies to a broad OEM base across:

• Passenger vehicles, tractors, LCVs/M&HCVs
• Railways, defence, and industrial engines

Why It Catches Our Eye

Metric	Value	Why It Matters
P/E Ratio	20.2	Fairly priced below industry average (28.0)
Dividend Yield	2.11%	Healthy passive income for a smallcap
Book Value	₹590	Trades near book value (P/B ~1.01)
ROE (3Yr Growth)	37% CAGR	Signs of profitability expansion
Debt-to-Equity	0.04	Nearly debt-free; highly stable
EV/EBITDA	11.4	Moderate valuation on cash-flow basis
Interest Coverage	16.6	Strong ability to service liabilities

Strategic Outlook

• Undervalued with steady earnings: EV/EBITDA <12, P/B ~1, and strong OEM connections make this a classic “boring compounder” with limited downside.
• Auto sector revival: With auto demand improving and capex cycles resuming, engine component suppliers like BBL could benefit from operating leverage.
• Strong Balance Sheet: With almost no debt and improving cash flows, BBL stands well-positioned for the next phase of the market uptrend.

Bottom Line

In a market fueled by momentum and the ongoing Nifty market recovery, Bimetal Bearings Ltd offers a low-risk, quality smallcap bet with solid fundamentals and a steady dividend track record. It may not skyrocket overnight — but for patient investors, it could quietly compound returns over time.

📌 Ideal for long-term value investors seeking stability in smallcap terrain.

Conclusion

As the markets consolidate after a volatile session, the spotlight shines on the IT sector’s quiet leadership, even as broader indices face pressure. The IT sector leads market recovery remains intact but is now facing key resistance levels, warranting cautious optimism.

From SEBI’s regulatory push on expiry realignment to MCX’s strategic electricity derivatives plan and Blackstone-backed REIT ambitions — today’s news flow signals structural shifts underway in India’s financial and real estate landscape.

Meanwhile, Happiest Minds has emerged as a strong breakout candidate on the technical charts, while Bimetal Bearings Ltd highlights the kind of overlooked smallcap gems that can thrive quietly during a market reset.

Whether you’re tracking momentum, seeking value in smallcaps, or positioning for the next leg of the rally — this newsletter has you covered.

What’s Next?

Stay tuned as we continue decoding market trends, stock-specific strategies, and IPO action — every step of the way.

Open your Demat account with Angel One today and ride the next market wave with expert insights and zero brokerage on delivery trades!

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