IT and Small Caps Shine: Textiles in Focus with PLI-II Hopes

Introduction

The broader market ended lower today, but not all segments followed the same trend. The Nifty 50 slipped 126 points to close at 25,511.80, while the Sensex lost over 450 points. Weakness in banking, auto, and FMCG stocks dragged the indices.

However, select sectors stood strong. The Nifty IT index rose 0.36%, showing strength in tech names. Small caps outperformed sharply, with the BSE SmallCap index gaining 0.83%. This divergence signals smart money is rotating into value and growth stocks.

Meanwhile, the Textile Ministry is planning new policy support for the sector. In addition to the current PLI scheme, talks are ongoing for a potential PLI Scheme – II. This development, highlighted in today’s Textile PLI Scheme news, covers the full textile value chain—from handlooms to technical textiles.

Today’s newsletter covers it all: shifting market leadership, top-performing small caps, and the impact of government policy on textiles. You’ll get a detailed Nifty 50 technical outlook, key news and movers, a fresh breakout setup, and the latest on IPO flows. We also spotlight a smallcap stock with strong fundamentals worth tracking. Whether you trade short-term or invest long-term, this issue delivers key insights you can act on.

Nifty 50 Technical Outlook On Textile PLI Scheme news

Current Price: ₹25,517.05
Intraday High: ₹25,669.35
Volume: 270.95M (elevated)
Short-Term EMA (9-day): ₹25,150.46

Market Context

After a strong breakout from a multi-week consolidation zone, Nifty is currently in a mild retest phase. Despite today’s red candle, price action remains constructive above the key breakout level.

Chart Structure Overview

Breakout Confirmation:
Nifty recently broke above the ₹25,206–₹25,250 resistance zone with strong bullish momentum and supportive volume. The current pullback appears to be healthy profit booking rather than a sign of weakness.

Key Levels to Watch

Type	Level (Approx)
Resistance (Recent High)	₹25,670–₹25,675
Immediate Support	₹25,150–₹25,206
Strong Support Zone	₹24,452–₹24,462
Long-Term Resistance	₹26,266 (All-Time High)

Indicators & Volume Analysis

The 9-day EMA continues to slope upward, providing dynamic support around ₹25,150. Sustained volume, even on red candles, suggests strong participation and confirms bullish intent.

Possible Market Scenarios

Bullish Case (Most Likely)
A retest of the ₹25,200–₹25,250 zone could trigger fresh buying interest. A daily close above ₹25,675 would open the path toward ₹25,900–₹26,250 (previous ATH).

Bearish Case (Low Probability)
A break and close below ₹25,150 may lead to deeper pullbacks toward ₹24,450–₹24,600. This would invalidate the breakout in the short term.

Strategy for Traders

• Swing/Positional Traders:
  Consider buying on dips toward ₹25,200–₹25,250 with a stop-loss below ₹25,100 on closing basis. Upside targets are ₹25,900 and ₹26,250.
• Short Sellers:
  Avoid premature shorts. Only consider shorting if Nifty closes below ₹25,100 with downside targets at ₹24,450.
• Options Traders:
  Bull Put Spreads or long Calls on dips could be effective. Monitor VIX—rising volatility with falling prices might warrant protective puts.

Broader Perspective

The current strength in small caps and select sectors like IT points to underlying bullish sentiment. Additionally, sectoral developments such as the Textile PLI Scheme news are expected to fuel stock-specific momentum, especially in export-oriented and domestic manufacturing plays.

Conclusion

• Bias: Bullish (buy on retest)
• Momentum: Intact with minor profit-taking
• Key Support Zone: ₹25,150–₹25,250
• Target Zone: ₹25,900 / ₹26,250
• Risk Level: ₹25,100 (short-term invalidation)

The index continues to hold higher ground. Traders should stay aligned with the trend while managing downside risk strategically.

News & Impacted Stocks

1. Textile PLI Scheme news: Textile Ministry Plans Fresh Incentives

The Indian textile sector is back in the spotlight as the Textile Ministry signals new schemes to boost growth across the value chain—from handlooms to high-tech textiles. During a press interaction in Coimbatore on June 30, 2025, Union Minister of State for Textiles Pabitra Margherita revealed that the government is actively evaluating the Textile PLI Scheme – II, along with other sector-specific initiatives.

This fresh Textile PLI Scheme news brings renewed hope to an industry seeking global competitiveness and domestic revival. It addresses long-standing stakeholder demands, including:

• Reintroduction of PLI to support exports and employment.
• Easing of Quality Control Orders (QCOs) for smoother compliance.
• Revival of legacy assets like NTC mills in Tamil Nadu.

Impacted Stocks:

• Raymond Ltd. – With exposure to technical textiles and ready-made garments, may benefit from targeted schemes.
• Welspun India, Trident, Himatsingka Seide – All with significant textile export businesses could see improved sentiment.
• Nitin Spinners, KPR Mill, and Vardhman Textiles – Strong fundamentals, and likely direct beneficiaries of capacity and modernization support under the upcoming PLI-II.

Investor Takeaway:
Any confirmation on the PLI-II scheme could trigger a re-rating for quality mid and small-cap textile stocks, especially those with export linkages and integrated operations.

2. Raymond Realty Lists Today — Pure-Play Real Estate Story Unfolds

What Happened:
Raymond Realty, the real estate arm of Raymond Ltd., is all set to list on the stock exchanges on July 1, 2025, after completing its demerger in May. For every Raymond share held, investors will receive 1 Raymond Realty share, creating a focused real estate company with massive potential.

Business Strength:

• Owns 100-acre land bank in Thane with revenue potential of ₹25,000 Cr.
• Signed Joint Development Agreements (JDAs) in premium areas like Bandra, Wadala, and Sion worth ₹14,000 Cr GDV.
• Total Gross Development Value: ~₹40,000 Cr.
• FY25 Sales: ₹2,314 Cr; FY26 Target: ₹3,000 Cr (30% growth).

Brokerage View:
Ventura Research sets a target price of ₹1,383 per share.

Stock Impact:

• Raymond Realty is a potential wealth creator in real estate.
• Raymond Ltd. may see rerating due to improved balance sheet clarity and value unlocking.

3. Embassy REIT Raises ₹1,550 Cr — Refinances Debt Smartly

What Happened:
Embassy REIT, one of India’s leading real estate investment trusts, has raised ₹1,550 Cr through:

• ₹750 Cr via Non-Convertible Debentures (NCDs)
• ₹800 Cr via term loans from a bank

Why It Matters:
The proceeds will refinance existing debt, potentially lowering interest costs and improving financial flexibility.

Investor Takeaway:
Good news for income-focused investors — refinancing enhances the potential for consistent dividend payouts and lower risk exposure.

4. Curefoods Files for ₹800 Cr IPO — Fast Expansion Mode

What Happened:
Cloud kitchen platform Curefoods, known for brands like Krispy Kreme and EatFit, has filed its Draft Red Herring Prospectus (DRHP) with SEBI.

Issue Details:

• Fresh Issue: ₹800 Cr
• Offer for Sale (OFS): Major investors like Iron Pillar, Accel, Chiratae to offload shares

Use of Funds:

• Launch new cloud kitchens and Krispy Kreme stores
• Expand existing kitchens with more brands
• Purchase equipment and support strategic initiatives

Why It Matters:
India’s QSR/cloud kitchen space is heating up, and this IPO is a strong play on consumption, health, and delivery trends.

Stock Impact (Pre-IPO):

• May boost related food-tech firms (like Jubilant FoodWorks)
• JM Financial, IIFL involved — financial firms may see traction due to IPO advisory

5. Co-Working Demand Surges — Office Leasing Up 48%

What Happened:
Co-working operators leased 65 lakh sq. ft. of office space across India in Jan–Jun 2025 — up 48% YoY.

Top Cities:
Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Pune, Chennai, Kolkata

Reasons for Surge:

• Cost-efficiency & flexibility for corporates
• Growth in Global Capability Centres (GCCs)
• Tech and BFSI firms driving demand

Industry View:
Experts call flex workspaces the new normal, and expect demand to remain strong through 2025 and beyond.

Stock Impact:

• Positive for Mindspace Business Parks REIT, Embassy REIT, and commercial realty players like DLF.
• Leasing momentum shows corporate confidence in India’s growth story.

6. Anant Raj’s ₹18,000 Cr Bet on Data Centers

What Happened:
Anant Raj Ltd. announced a ₹18,000 Cr investment to build three large-scale data centers in Haryana, targeting over 300 MW capacity by 2032.

Why This Is Big:

• India generates 28% of global data, but stores only 1% locally.
• Govt push for data localization is a major tailwind.
• Partners with French IT giant Orange Business to offer cloud + infra services.

Growth Outlook:
Data center revenue will grow from 5% to 40% of total revenue in next 4 years.

Stock Impact:

• Strong rerating potential for Anant Raj Ltd.
• Other data infra and commercial property developers may follow suit.

7. Alembic Pharma Jumps 12% — USFDA Cancer Drug Nod

What Happened:
Alembic Pharma surged 5% after receiving USFDA approval for its cancer drug: Doxorubicin Hydrochloride Liposome Injection.

Market Size:
~$29 million in the U.S. alone.

Why It Matters:

• Alembic now holds 224 USFDA approvals
• Strengthens its oncology portfolio
• Technically sound — trading above key averages despite market volatility

Stock Impact:
Positive short- to medium-term sentiment; stock may trend higher with volume support.

Stocks on Technical Radar – High-Risk, High-Reward Play

RTNPOWER – Breakout from Three-Wave Structure

Chart Pattern: Three Rising Valleys (Bullish Continuation)
Timeframe: Daily Chart
Closing Price : ₹15.52

Pattern Breakdown

RTNPOWER has confirmed a textbook breakout from a three-wave bullish continuation pattern. Here’s the structure:

• Wave 1: ₹9.7 to ₹11.3
• Pullback 1: Mild correction to ₹10.5
• Wave 2: Extended move up to ₹13.3
• Pullback 2: Support held near ₹11.2
• Wave 3: Breakout above ₹15.5 with a strong volume surge

This breakout confirms the bullish structure, suggesting a fresh momentum phase.

Technical Highlights

Indicator	Observation
Volume	Breakout candle saw 430M+ volume – well above average
Resistance Cleared	₹15.50 zone decisively crossed
Target Zone 1	₹17.80 (measured move target)
Target Zone 2	₹20.25–₹20.40 (2023 swing high zone)
Stop Loss	₹13.50 (below short-term EMA and support)
Risk–Reward Ratio	Between 1:2.5 and 1:3 (favorable)

Why It’s High Risk

• Volatility: RTNPOWER is a small-cap/penny stock. Intraday swings are often exaggerated.
• Overextended: The stock is up ~45% in a few weeks — prone to pullbacks or operator-driven shakeouts.
• Speculative Participation: Sudden volume spikes can invite short-term interest, but exits may be sharp.

Why It’s High Reward

• Technical Confirmation: Strong pattern with rising demand and breakout validation.
• Upside Room: Over 30% potential to the next resistance zone.
• Momentum Tailwind: Price riding comfortably above the 9-day EMA, indicating sustained trend.

Bottom Line

Factor	Status
Trend	Bullish
Volume	Strong
Pattern	Confirmed
Risk	High
Reward	High

This is a classic case of a high-volatility breakout with significant upside if the momentum sustains — but only suitable for aggressive traders who manage risk tightly.

⚠️ Investment Disclaimer:
This technical analysis is purely educational. We are not SEBI-registered advisors. Please consult a registered investment advisor before making any trading or investment decisions. Trading in small-cap stocks carries inherent risk and may lead to capital loss.

IPO Updates – Open, Close, Listing, and GMP Highlights

Mainboard IPO

Company	Open	Close	Listing	GMP	Listing Gain
Indogulf Cropsciences	26-Jun	30-Jun	3-Jul	₹12	+10.81%

SME IPO

Company	Open	Close	Listing	GMP	Listing Gain
Silky Overseas	30-Jun	2-Jul	7-Jul	₹16	+9.94%
Vandan Foods	30-Jun	2-Jul	7-Jul	₹20	+17.39%
Cedaar Textile	30-Jun	2-Jul	7-Jul	₹10	+7.14%
Pushpa Jewellers	30-Jun	2-Jul	7-Jul	₹28	+19.05%
Marc Loire	30-Jun	2-Jul	7-Jul	₹6	+6.00%
Neetu Yoshi	27-Jun	1-Jul	4-Jul	₹30	+40.00%
Adcounty Media	27-Jun	1-Jul	4-Jul	₹44	+51.76%
Ace Alpha Tech	26-Jun	30-Jun	3-Jul	₹26	+37.68%
Moving Media Entertainment	26-Jun	30-Jun	3-Jul	₹25	+35.71%
PRO FX Tech	26-Jun	30-Jun	3-Jul	₹6	+6.90%

Smallcap of the Day: Signpost India Ltd

BSE: 544117 | NSE: SIGNPOST | CMP: ₹214 | Market Cap: ₹1,143 Cr

Business Snapshot

Signpost India Ltd (SIL), incorporated in 2008, is a leading Digital Out-of-Home (DOOH) advertising company—India’s first and largest main-street DOOH billboard network and the world’s largest digital bus queue shelter operator.

Key Highlights

• 33.9 million sq. ft. of ad inventory across urban transit infrastructure.
• Builds public utility spaces: Smart shelters, ergonomic seating, charging docks, tactile flooring, SOS stations, etc.
• Hybrid mobility and ad-tech integration in smart cities.

Financial Snapshot (FY25)

Metric	Value
Sales	₹453 Cr
Net Profit Margin	10.6%
Operating Margin	19.6%
ROCE / ROE	15.2% / 16.5%
EPS (TTM)	₹6.31 (Est.)
PE Ratio	33.9×
Book Value	₹41.1
Debt to Equity	0.79
Cash Reserves	₹43 Cr
Price to Book	5.21×
Intrinsic Value (Est.)	₹125

Quick Take

Despite a recent correction from its 52-week high of ₹403, Signpost India’s unique infrastructure-driven DOOH model, strong margins, and smart city alignment make it a differentiated play in the smallcap space.

⚠️ Investment Disclaimer
This is not investment advice. We are not SEBI-registered advisors. Always consult a certified financial advisor before investing.

Closing Thoughts

Despite headline indices showing red, today’s market revealed deeper strength — with IT and Smallcaps leading the charge, and promising signs emerging from textile policy developments. The buzz around the Textile PLI Scheme news signals policy momentum, while IPO markets continue to show retail frenzy in select SME counters.

Stocks like RTNPOWER broke out with volume, offering high-risk high-reward trades, and Signpost India stood out with its smart-city aligned growth story in the smallcap segment.

As we step into a new month, watch for sectoral rotation, policy-led moves, and IPO listing action. Smart money is shifting beneath the surface — stay sharp, stay informed.

Related Articles

How a Tea Seller Used the Power of Compound Interest to Build ₹45 Lakh

China’s Fertilizer Export Halt to India: Stocks Set to Gain from the Supply Shock

The 15-15-15 Rule: Why the ₹1 Crore SIP Dream Needs a Reality Check