Nifty on the Edge: IT Outshines, and a Small-Cap to Watch

Market Pulse

Nifty on the Edge—that’s where the Indian market stands as we head into mid-June.

Despite broader index movement being range-bound, IT stocks lit up the board with strong momentum, giving a bullish tilt to an otherwise mixed market. HCL Tech, Infosys, and Wipro led the pack while PSU Banks and heavyweights like Adani Enterprises and Shriram Finance dragged the other way.

Meanwhile, the Nifty 50 continues to flirt with all-time highs, hovering around the crucial ₹25,220 resistance mark. With volatility compressed and price action tightening, traders and investors alike are watching for a confirmed breakout.

In this edition, we decode:

• The technical setup of Nifty and what lies ahead
• Sector & stock-specific impacts from top headlines
• A breakout-ready chart in the energy space
• A fresh IPO filing to track
• And one small-cap stock making quiet but strong moves

Let’s dive in—because when Nifty’s on the edge, opportunity often knocks loudest.

Nifty on the Edge– Technical Outlook

As the week unfolds, Nifty on the Edge is more than just a phrase—it’s exactly where we stand on the charts.

Market Snapshot:

• Closing Price: ₹25,141.40
• Day’s Range: ₹25,081.30 – ₹25,222.40
• Change: +₹37.15 (+0.15%)
• Volume: 301.2M – moderate and steady
• 9-day EMA: ₹24,839.51 (rising and supportive)

What’s Happening on the Chart?

1. Testing the Peak

Nifty has moved back into its all-time high zone near ₹25,220–₹25,250.
But this isn’t a smooth sail just yet—multiple upper wicks in recent candles point to sellers waiting at the top. Today’s small-bodied green candle (a potential spinning top) signals indecision, not conviction.

2. Support Zones Are Holding Steady

Even as bulls eye new highs, price action continues to hold above:

• Minor Support: ₹25,075
• Major Demand Zone: ₹24,530–₹24,540
• 9 EMA: ₹24,839 – still climbing and respected

3. Uptrend Intact—for Now

Higher highs and higher lows remain unbroken.
Momentum has cooled, but the structure stays bullish, with price respecting its short-term EMA. This keeps Nifty on the Edge of a potential breakout rally.

Today’s Possible Scenarios

Scenario	What It Means
Bullish	Break and sustain above ₹25,225 = move toward ₹25,350–₹25,500
Sideways	Fails at ₹25,225 again = stays between ₹25,075–₹25,225
Bearish	Falls below ₹25,000 = watch dip to ₹24,840 or even ₹24,540

Key Levels to Watch

Type	Level	Why It Matters
Resistance	₹25,220–₹25,250	Previous ATH zone
Support 1	₹25,075	Minor intraday base
Support 2	₹24,839	EMA – short-term support
Support 3	₹24,540–₹24,530	Strong demand area
Trend Flip	₹23,800	Break below = bearish shift

Trading Game Plan

• If Gap-Up Above ₹25,220:
  Buy on pullback to ₹25,220. SL: ₹25,075. Targets: ₹25,350 / ₹25,500
• If Range-Bound (₹25,075–₹25,220):
  Wait for breakout confirmation. Avoid aggressive entries.
• If Breaks Below ₹25,000:
  Short-term dip likely. Watch for bounce at ₹24,840–₹24,540 for long re-entry.

Summary

Signal	Status
Trend	Bullish Bias
Resistance	Testing All-Time Highs
Breakout	Not Yet Confirmed
Support	Holding Strong
Volatility	Low – breakout brewing

With momentum leaning up and volatility tightening, Nifty on the Edge is building tension—one big move could be just a session away.

Headlines Driving Action — News & Stock Impact

As Nifty on the Edge keeps traders guessing near record highs, corporate activity is heating up across sectors — from global acquisitions to domestic IPOs. Let’s decode the key developments and identify where the action might head next.

Mizuho Nears Avendus Acquisition — Global Capital Eyes India

What happened:
Japan’s Mizuho Financial Group is set to acquire a 63% stake in Avendus Capital from KKR, potentially increasing its stake to ~70% by also buying from minority holders.

Why it matters:
This is a strategic bet on India’s booming dealmaking ecosystem. Mizuho gains access to a high-growth platform in PE, investment banking, and wealth management.

Stock Impact:

• Indirect beneficiaries: HDFC Bank, Kotak Mahindra Bank (both active in investment advisory)
• Sentiment booster for Indian capital markets overall

GMDC Surges on Rare Earths Buzz

What happened:
GMDC shares soared 18% over 8 sessions as fears grow about global rare earth supply disruptions. The company has exposure to rare earth and critical minerals, which are vital for EVs and defense.

Why it matters:
In a world moving towards green tech and strategic mineral self-sufficiency, India’s mining PSUs are gaining investor interest.

Stock Impact:

• GMDC – immediate technical breakout candidate
• Watch MOIL, Hindustan Copper, Vedanta for sympathy rallies

NSDL’s $400 Mn IPO Set for July

What happened:
NSDL, India’s oldest depository, is planning a ₹3,300 crore IPO in July. The entire offer is OFS, with shares from IDBI Bank, NSE, and SBI.

Why it matters:
With NSDL listing, both depositories in India will be publicly traded (CDSL is already listed). This boosts transparency and investor visibility in capital market infra.

Stock Impact:

• CDSL – may react as the only listed peer
• Could lift interest in fintech infra plays like CAMS, KFin Tech

Quess Corp Demerger: Volatility as New Entities List

What happened:
Quess Corp completed its demerger, resulting in two new entities—Digitide Solutions and Bluspring Enterprises—listing separately on June 10.

• Digitide: Focused on BPM, Insurtech, and HR outsourcing. Listed ~59% higher than its intrinsic value and now trades at ₹240.90.
• Bluspring: Focused on facilities management, telecom infra, and industrial services. Opened 44% below estimated value and hit lower circuit.

Why it matters:
The move aims to simplify group structure, give operational freedom to matured businesses, and unlock long-term value.

Stock Impact:

• Digitide Solutions – high-tech BPM and HRO focus makes it a growth candidate; watch volume stability
• Bluspring Enterprises – short-term underperformance but may attract value-hunters
• Quess Corp – may stabilise as legacy drag reduces

CPI Preview – Cooling Inflation Could Calm the Street

What happened:
India’s May CPI is expected to ease to 2.98%, down from 4.83% in April, per Bloomberg estimates. It would mark the lowest reading in two years.

Why it matters:
A CPI reading below 3% would boost confidence in RBI’s current stance and ease macro concerns around consumer demand and policy rate.

Stock Impact:

• Rate-sensitive sectors like auto, real estate, and NBFCs may find tailwinds
• Stocks to watch: Bajaj Finance, D-Mart, Prestige Estates

Tea Post IPO – Desi Café Chain Goes Public

What happened:
Gujarat-based café chain Tea Post filed a DRHP for a ~₹300 crore IPO (1.42 crore fresh + 1.42 crore OFS shares).

Why it matters:
Backed by IndiaNivesh Venture Capital, the chain operates across Tier 2–3 towns and promotes a localised “chai” experience, differentiating itself from global peers.

Stock Impact:

• Sapphire Foods, Devyani International – sentiment lift from renewed interest in QSRs
• Café sector may draw investor buzz; keep an eye on any retail listing enthusiasm

Orkla India IPO Filed – FMCG IPO Buzz Begins

What happened:
Orkla India, owner of popular FMCG brands MTR and Eastern, has filed for an IPO. The ₹2.28 crore share offer is a pure OFS by existing shareholders.

Why it matters:
This is a high-margin, well-known brand in India’s branded food space. Its IPO may draw significant retail interest, especially from food product lovers.

Stock Impact:

• Large FMCG names like Nestlé, HUL, and Marico could see sentiment ripple effects
• Hatsun Agro, Heritage Foods might also attract thematic investor attention

Wrapping it up:

These stories are more than headlines—they’re catalysts. While Nifty on the Edge keeps traders focused on technical resistance, these corporate updates are reshaping the landscape below. From IPOs to demergers and inflation prints, it’s a busy runway ahead.

Technical Pick – Riding Strength While Nifty on the Edge

WIPRO Ltd – Bullish Breakout in Motion
📍 CMP: ₹258.90

Pattern in Play: Cup Formation on Daily Chart

Bullish Setup Alert
WIPRO has formed a classic cup pattern—a sign of accumulation now breaking out. As Nifty hovers on the edge, WIPRO quietly powers through its neckline.

Breakout Zone: ₹257.20–₹259.00
✔️ Today’s breakout came with rising volume – a strong confirmation signal.

Key Technicals: All Green So Far

Indicator	Status
9 EMA Trend	Price above ₹249.46 → Bullish
RSI Momentum	Approaching 60–65 → Strong but safe
Volume Trend	Breakout volume rising → Confirmatory

Trade Plan – Swing Setup (3–10 Days)

Parameter	Value
Buy Zone	₹257.50–₹260.00
Stop Loss	₹245.35 (below handle + EMA)
Target 1	₹273.15 (previous resistance)
Target 2	₹287.55 (measured move of cup height)
Risk:Reward	~1:2.5 → Favourable for short-term

Short-Term Outlook: Know Your Levels

Scenario	Implication
✅ Sustains above ₹259	Target ₹273+ likely
⚠️ Closes below ₹255	Reduce exposure – watch for pullback
❌ Breaks ₹245	Exit trade – setup invalidated

💡 Quick Take:
WIPRO’s breakout is clean and convincing. While the broader Nifty is on the edge of resistance, this tech major is showing early leadership strength—ideal for a low-risk swing setup.

IPO Watch – Key Listings as Nifty on the Edge

While Nifty on the Edge navigates resistance near all-time highs, the IPO market remains active with a mix of mainboard and SME action. Let’s take a sharp look at the most relevant and high-GMP listings investors should track this week:

Mainboard IPO Highlight

Oswal Pumps Ltd
A big-ticket mainboard listing drawing strong retail interest.

Detail	Info
Open	13-Jun
Close	17-Jun
Listing	20-Jun
GMP	₹90 (~+14.6%)

💡 Industrial pumps + water infrastructure play + positive GMP = solid watchlist candidate for debut strength.

High-Interest SME IPOs

Company	Open	Close	Listing	GMP / Gain
Monolithisch India	12-Jun	16-Jun	19-Jun	₹36 (~+25%)
Eppeltone Engineers	17-Jun	19-Jun	24-Jun	₹30 (~+23%)
Patil Automation	16-Jun	18-Jun	23-Jun	₹18 (~+15%)
Jainik Power & Cables {Open}	10-Jun	12-Jun	17-Jun	₹7 (~+6%)

What to Track This Week

• Focus on Monolithisch & Eppeltone for strong listing day momentum
• Oswal Pumps offers a rare large-scale opportunity in SME-heavy season
• Flat or unavailable GMPs on some others suggest selective investor interest

Even as we navigate Nifty on the Edge, IPO enthusiasm shows risk appetite is far from dead—especially in niche manufacturing, automation, and infra plays.

Small-Cap Spotlight: Dolat Algotech – A Silent Performer While Nifty on the Edge

Dolat Algotech Ltd
CMP: ₹109 | Market Cap: ₹1,911 Cr | P/E: 8.87 | Book Value: ₹57

As Nifty stays on the edge of new highs, some quiet outperformers have gone unnoticed. One such name: Dolat Algotech Ltd, a niche player dominating India’s algorithmic trading space with precision, consistency, and a tech-first approach.

Company Overview

Dolat is a proprietary trading firm and registered broker on the NSE, operating across the Capital Markets and F&O segments. But what truly sets it apart is its deep expertise in algo-based derivatives trading, executed through its own low-latency software platform.

The company, formerly known as Dolat Investments Ltd, rebranded in 2021 to reflect its shift toward high-tech, automated trading. Since then, it has carved out a distinct niche—quietly becoming a significant player in India’s high-frequency trading space.

With Nifty on the Edge, Dolat’s unique positioning in delta-neutral trading and risk-managed strategies offers an interesting contrast to the broader market’s volatility.

Core Strengths & Strategy

• Algo Advantage: Dolat uses internally built algorithms for delta-hedged derivatives strategies, designed to exploit inefficiencies in market pricing with near-zero latency.
• Clean Financial Profile: The company has over ₹380 Cr in long-term FDs (mostly pledged as margin), ₹78 Cr invested in liquid funds and G-secs, and no long-term debt.
• Revenue Mix (FY23):
  • 95% from shares & securities trading
  • 4% from dividends
  • 1% from liquid fund returns

With offices in Mumbai and Gandhinagar (GIFT City proximity), Dolat benefits from a strong tech-and-finance talent pool.

Financial Snapshot

Metric	Value
Sales (FY24 est.)	₹530 Cr
Operating Margin	65.6%
Net Profit Margin	41.9%
ROE (3Yr Avg)	24%
ROCE	35.5%
Dividend Yield	0.23%
Debt to Equity	0.07
EPS 3Yr Growth	8.77%
Intrinsic Value	₹426 (est.)

Dolat’s low valuation (EV/EBITDA 5.65 and P/E under 9) versus its tech-heavy efficiency and strong margin profile makes it stand out among peers. It’s rare to find a stock with such consistent profitability, high returns on capital, and a scalable model in India’s mid-cap or small-cap segment.

Final Take

While Nifty remains on the edge—sensitive to global cues, inflation data, and central bank action—Dolat’s performance is powered less by market swings and more by mathematical strategy and execution precision. For investors seeking differentiated exposure with downside protection and earnings visibility, Dolat Algotech could quietly become a winner in a noisy market.

Wrapping Up: Market on the Verge, Opportunities Emerging

As we watch Nifty on the Edge, it’s clear that markets are not just being driven by large caps anymore. The action is spreading across segments—from IT stocks lifting the benchmark, to niche players like Dolat Algotech quietly delivering alpha.

From strategic demergers to multi-crore IPOs and technical setups like Wipro’s breakout, each story this week paints a part of a bigger picture: India’s capital markets are transforming—and fast. Whether you’re trading on patterns or investing on conviction, the edge lies in knowing what’s moving before it becomes mainstream.

🌟 Stay ahead while Nifty balances on the edge—be it through smart trades or smart tools.

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