The Indian stock market displayed resilience on Monday as benchmark indices closed with decent gains despite foreign institutional investors continuing their selling spree. The Nifty 50 index rose 0.32 percent to settle at 25,574.35 points, though it remained below its crucial 20-day exponential moving average.
Market Overview and Technical Position
Foreign institutional investors sold Indian equities worth ₹4,114.85 crore in the cash segment, creating headwinds for the market. However, selective buying in heavyweight stocks helped the indices maintain positive territory.
According to Ajit Mishra, Senior Vice President of Research at Religare Broking, the Nifty 50 closed below its 20-day EMA around 25,587, which doesn't favor bullish sentiment. "As long as the index holds above the 25,300 mark, a phase of consolidation at current levels cannot be ruled out," Mishra stated.
He further cautioned that a decisive breach below the 25,300 support could trigger profit-taking, potentially dragging the index toward the 25,150–25,050 zone. On the upside, Mishra emphasized that a sustained move above 25,600 would be essential for further rally toward the 25,800–26,000 region.
Expert Stock Recommendations for 1-2 Weeks
Market experts Vishnu Kant Upadhyay of Master Capital Services and Hitesh Tailor of Choice Equity Broking have identified six stocks that show promising technical setups for short-term gains over the next 1-2 weeks.
Vishnu Kant Upadhyay's Top Picks
ICICI Bank: Upadhyay recommends buying at ₹1,348 with target prices of ₹1,420 and ₹1,430, maintaining a stop loss at ₹1,305. The stock has bounced back sharply after taking horizontal support on the weekly chart, reaffirming its broader higher-high, higher-low structure. While trading below key moving averages on daily timeframe, the rebound from support indicates potential short-term strength.
Bajaj Finserv: With a buy recommendation at ₹2,118, this stock has targets of ₹2,230 and ₹2,250, with stop loss placed at ₹2,030. The stock has exhibited strong bullish momentum, rebounding decisively from its 50 EMA and maintaining trade well above all key moving averages. The RSI's upward trajectory and bullish MACD crossover confirm improving momentum.
Astral: Upadhyay suggests buying at ₹1,568 with targets of ₹1,700 and ₹1,800, keeping stop loss at ₹1,470. The stock has witnessed a breakout from a multi-month consolidation zone on weekly charts accompanied by significant volume expansion, affirming bullish strength. The price structure shows improving alignment with key moving averages, signaling potential trend shift.
Hitesh Tailor's Recommended Stocks
Persistent Systems: Tailor recommends buying at ₹5,864.50 with target price of ₹6,400 and stop loss at ₹5,600. The stock has recently given a wide-range trendline breakout followed by successful retest, taking strong support near breakout zone aligned with 20-day EMA. The stock trades firmly above key moving averages, confirming strength in ongoing uptrend.
IDFC First Bank: With buy recommendation at ₹81.21, target price of ₹89 and stop loss at ₹77.50, this stock continues to maintain strong higher high and higher low formation on daily charts. The stock is taking solid support near previous higher high level around ₹78, suggesting buying interest at lower levels.
Indiamart Intermesh: Tailor suggests buying at ₹2,451.80 with target price of ₹2,650 and stop loss at ₹2,350. The stock has been consolidating in sideways range, taking strong support near lower levels and is on verge of breakout from falling trendline, indicating possible momentum shift.
Market Outlook and Strategy
Market participants are advised to adopt stock-specific approach amid ongoing consolidation phase. Quality stocks should be accumulated on dips while maintaining selective shorts as hedge against volatility.
Fundamental factors including Q2 earnings, developments in India-US trade talks, and global market cues will continue to influence market sentiment in coming sessions. Technical indicators suggest the market is in consolidation mode with clear support and resistance levels that traders should monitor closely.
Disclaimer: This analysis is for educational purposes only. The views and recommendations are those of individual analysts and not Mint. Investors should consult certified experts before making investment decisions as market conditions can change rapidly.
