Indian Stock Market Closes on Cautious Note Amid Selective Profit Booking
The Indian stock market concluded Tuesday's trading session on a restrained and range-bound trajectory, as profit-taking activities in key sectors like banking, information technology, and healthcare exerted downward pressure on the major indices. This profit booking emerged as a primary drag, contributing to an overall subdued market sentiment throughout the day.
In the absence of significant domestic or global catalysts, market participants opted for selective positioning rather than engaging in aggressive buying. However, sentiment received a mild supportive boost following comments from a senior National Stock Exchange official. The official expressed optimism that the recent increase in securities transaction tax might be reconsidered, citing representations made to the finance minister.
Expert Analysis on Market Bias and Technical Outlook
Sumeet Bagadia, Executive Director at Choice Broking, assessed the current market bias as cautious to positive. He pointed out that the daily chart pattern of the Nifty 50 index indicates profit booking at elevated levels and a noticeable lack of follow-through buying interest from investors.
Discussing the specific outlook for the Nifty 50 index, Bagadia stated, "The immediate upside resistance is positioned in the 26,050 to 26,100 zone, while crucial downside support lies within the 25,750 to 25,800 range. From a momentum perspective, the daily Relative Strength Index reading of 57.51 suggests a neutral-to-positive bias without any overbought conditions, maintaining a constructive broader trend."
Regarding the Bank Nifty index, Parekh provided insights, noting, "The immediate resistance is placed in the 60,900 to 61,000 zone, while the 60,300 to 60,400 support band remains critical for near-term stability. On the daily chart, the RSI at 59.74 signals positive but cooling momentum, with no indications of overbought conditions, keeping the broader trend constructive yet cautious. As long as the index sustains above 60,400 on a closing basis, a selective buy-on-dips strategy can be considered, with a strict stop-loss at 60,150."
Five Breakout Stocks Recommended for Intraday Trading
Concerning specific trading opportunities, Sumeet Bagadia recommended five breakout stocks for intraday trading on Tuesday. These stocks were identified based on their technical patterns and potential for upward movement.
- Divgi TorqTransfer Systems: Buy at ₹645, Target ₹690, Stop Loss ₹625
- MedPlus Health Services: Buy at ₹894, Target ₹955, Stop Loss ₹865
- DCB Bank: Buy at ₹198, Target ₹212, Stop Loss ₹190
- Kirloskar Oil Engines: Buy at ₹1265, Target ₹1360, Stop Loss ₹1215
- Centum Electronics: Buy at ₹2478, Target ₹2666, Stop Loss ₹2390
Disclaimer: This article is intended for educational purposes only. The views and recommendations presented above are those of individual analysts or broking companies and do not represent the opinions of Mint. Investors are strongly advised to consult with certified financial experts before making any investment decisions.
