Gland Pharma and Viyash Scientific Emerge as Top Technical Picks as Markets Navigate Near-Term Volatility

Indian equity markets are currently at an important technical crossroads, with the Nifty 50 testing crucial support levels after failing to sustain momentum above recent highs. According to technical analysts at HDFC Securities, the benchmark index remains vulnerable to short-term volatility but continues to hold above a strong cluster of support levels that could determine the next major market move.

While broader market sentiment has turned cautious following the recent correction, stock-specific opportunities continue to emerge. HDFC Securities has highlighted Gland Pharma and Viyash Scientific as two stocks exhibiting strong bullish chart patterns and favorable technical indicators, making them attractive candidates for traders seeking opportunities in a consolidating market.

The coming sessions are expected to be critical as investors assess whether the Nifty can defend key support levels or witness further downside pressure.

Nifty Fails to Sustain Above Key Resistance

The market's recent weakness began after Nifty failed to decisively break above the important resistance zone near 24,190.

Following the rejection at higher levels, the benchmark index slipped below its immediate swing low, signaling a loss of short-term momentum and increasing caution among traders.

What Triggered the Correction?

Technical analysts point to:

• Profit booking near resistance levels
• Weakness in select heavyweight sectors
• Global market volatility
• Lack of fresh buying momentum

These factors combined to push the index lower despite an otherwise supportive domestic macroeconomic backdrop.

Support Cluster Remains Strong

Despite the recent decline, analysts believe the Nifty continues to trade within a strong support region that could help stabilize market sentiment.

Important Support Levels

Key technical supports are currently placed at:

• 50-Day Exponential Moving Average (DEMA): 23,825
• 20-Day Exponential Moving Average (DEMA): 23,750
• 38.2% Fibonacci Retracement Level: 23,761
• 50% Fibonacci Retracement Level: 23,630

The convergence of multiple technical indicators in the same region strengthens the probability of support emerging around these levels.

Gap Zone Provides Additional Cushion

Another important factor supporting the market is the presence of a previously formed price gap.

The Nifty has entered a gap support zone created during the sharp rally witnessed earlier in June.

Why Gap Supports Matter

Gap zones often act as:

• Demand areas
• Institutional buying zones
• Technical support levels
• Potential reversal regions

The current gap support between 23,645 and 23,817 is therefore being closely monitored by market participants.

As long as the index remains above this range, analysts believe the broader uptrend remains intact.

What Happens If Support Breaks?

While the market continues to hold key support levels, analysts caution that a decisive breakdown could accelerate selling pressure.

Downside Risk Levels

If Nifty closes below 23,630:

• Selling momentum could intensify
• The next target could be near 23,500
• Volatility may increase across sectors

This level coincides with the 61.8% Fibonacci retracement of the previous rally and is considered a crucial line of defense for bullish investors.

Resistance Zone Remains Challenging

For the market to regain momentum, the Nifty must first overcome immediate resistance levels.

Key Resistance Area

Analysts identify:

• 23,900 to 24,000

as the near-term hurdle.

A successful breakout above this zone could restore confidence and potentially open the path toward retesting previous highs.

Until then, market participants are likely to remain selective in their investment approach.

Technical Setups Offer Stock-Specific Opportunities

Even as the broader market consolidates, several stocks continue to show strength through favorable chart formations and improving momentum indicators.

HDFC Securities believes traders should focus on stocks displaying clear breakout patterns and strong volume support.

Among the recommended names, Gland Pharma and Viyash Scientific stand out due to their bullish technical structures.

Gland Pharma Shows Strong Bullish Breakout

Pharmaceutical major Gland Pharma has emerged as one of the preferred technical picks based on its recent chart behavior.

Technical Highlights

Current Market Price: ₹2,290

Target Price: ₹2,500

Stop Loss: ₹2,150

According to analysts, the stock has delivered a breakout from a bullish Inverted Head and Shoulders pattern on the monthly chart.

Additionally, it has also broken out from a Flag pattern on the daily chart.

Why the Pattern Matters

The Inverted Head and Shoulders pattern is widely considered a powerful bullish reversal signal.

It often indicates:

• End of a prolonged correction
• Resumption of an uptrend
• Improving investor sentiment
• Strong accumulation activity

The breakout gains further credibility because it is accompanied by rising trading volumes.

Strong Momentum Supports Gland Pharma

Beyond chart patterns, several technical indicators continue to support the bullish outlook.

Positive Technical Signals

The stock is currently:

• Trading above key moving averages
• Witnessing strong volume participation
• Showing positive momentum trends
• Benefiting from favorable sector sentiment

These factors suggest continued buying interest from both traders and institutional investors.

Viyash Scientific Displays Cup-and-Handle Breakout

Another stock highlighted by HDFC Securities is Viyash Scientific, which has recently completed a classic bullish chart formation.

Technical Highlights

Current Market Price: ₹267

Target Price: ₹294

Stop Loss: ₹260

The stock has broken out from a Cup-and-Handle pattern on the weekly chart, a formation often associated with sustained upward movements.

Understanding the Cup-and-Handle Pattern

This pattern typically indicates:

• Strong accumulation
• Gradual trend formation
• Investor confidence
• Potential continuation of an uptrend

The breakout is considered particularly significant because it occurred alongside strong volume expansion.

Technical Indicators Confirm Strength in Viyash Scientific

Multiple momentum indicators continue to support the positive outlook for the stock.

Key Technical Signals

Analysts note:

• Weekly RSI remains above 50
• Weekly MACD has crossed above equilibrium
• MACD remains above the signal line
• Stock trades above key moving averages

Together, these indicators suggest strengthening momentum and improving trend quality.

Sector Rotation Driving Select Opportunities

The current market environment is characterized by sector rotation rather than broad-based participation.

While some sectors face profit booking and consolidation, others continue to attract fresh investor interest.

Areas Showing Relative Strength

Market participants are currently focusing on:

• Pharmaceuticals
• Specialty chemicals
• Healthcare
• Select industrials
• Mid-cap growth stocks

Both Gland Pharma and Viyash Scientific fit within sectors benefiting from improving investor sentiment.

Risk Management Remains Critical

Despite attractive technical setups, analysts continue to emphasize disciplined risk management.

Markets remain sensitive to:

• Global economic developments
• Interest rate expectations
• Commodity price movements
• Institutional fund flows
• Geopolitical events

Investors are advised to maintain stop-loss levels and position sizing discipline while participating in short-term trading opportunities.

Outlook: Market Awaits Directional Trigger

The Nifty's ability to defend the 23,630–23,800 support zone will likely determine the market's next directional move.

While short-term volatility may persist, strong technical support levels and selective stock opportunities continue to provide trading opportunities.