Indian Stock Market Shows Cautious Optimism Amid Global Cues
The Indian stock market exhibited a cautiously positive trading session on Monday, with benchmark indices opening higher following the announcement of an interim framework for the India–US trade deal. Supportive signals from broader Asian markets further contributed to sustaining the positive momentum throughout the day. However, despite the initial uptick, market participation remained selective as investors adopted a restrained approach, avoiding aggressive positioning in anticipation of key global and domestic macroeconomic indicators.
Sectoral Performance and Market Sentiment
Sectoral activity remained largely positive, with notable buying interest observed in PSU banks, consumer durables, realty, defence, pharmaceutical, and automotive stocks. In contrast, IT stocks displayed mixed trends as market participants continued to assess ongoing global technology developments. Overall, the market appears to be in a phase of gradual recovery and consolidation, with the near-term direction expected to be influenced by global macroeconomic developments, currency movements, and the sustainability of risk-on sentiment as reflected in foreign fund flows.
Expert Analysis: Nifty 50 and Bank Nifty Outlook
Sumeet Bagadia, Executive Director at Choice Broking, expressed a positive outlook on the Indian stock market, noting that the Nifty 50 index is attracting buying interest at lower levels despite facing pressure at elevated levels. He advised investors to focus on stocks that demonstrate strength on technical charts.
Nifty 50 Technical Perspective
Discussing the Nifty 50 outlook, Bagadia stated, "The technical daily chart pattern of the Nifty 50 index reflects sustained buying interest at lower levels, even amid elevated intraday volatility. The immediate upside resistance is positioned in the 26,000–26,050 range, while key downside support lies at 25,700–25,750. From a momentum standpoint, the daily RSI reading of 56.20 indicates a neutral-to-positive trend, suggesting underlying strength without any overbought signals."
He added, "On the derivatives front, significant put writing is observed at the 25,800 strike, accompanied by strong call writing at the 26,000 strike, which defines a narrow near-term trading band. As long as the index maintains a closing basis above the 25,700 mark, a selective buy-on-decline strategy remains valid, with a strict protective stop-loss placed at 25,500."
Bank Nifty Technical Perspective
Regarding the Bank Nifty outlook, Bagadia commented, "The daily technical chart pattern of the Bank Nifty index shows value buying at lower levels despite intraday selling pressure. Immediate resistance is situated in the 60,900–61,000 zone, while the 60,300–60,400 support band remains critical for maintaining near-term stability in the index. On the daily charts, the RSI stands at 60.22, indicating a strong bullish bias with healthy momentum and no signs of exhaustion."
He further noted, "As long as the index sustains above 60,400 on a closing basis, a selective buy-on-dips strategy may be considered, with a strict stop-loss placed at 60,150."
Five Breakout Stocks Recommended for Intraday Trading
In terms of shares to buy today, Sumeet Bagadia recommended five breakout stocks for intraday trading, providing specific entry points, targets, and stop-loss levels:
- Indian Bank: Buy at ₹902, Target ₹970, Stop Loss ₹875
- Indus Towers: Buy at ₹456, Target ₹488, Stop Loss ₹442
- RICO Auto: Buy at ₹133.55, Target ₹144, Stop Loss ₹129
- Lumax AutoTechnologies: Buy at ₹1537, Target ₹1660, Stop Loss ₹1470
- SJS: Buy at ₹1823, Target ₹1980, Stop Loss ₹1740
Disclaimer: This article is for educational purposes only. The views and recommendations presented are those of individual analysts or broking companies and do not represent Mint. Investors are strongly advised to consult with certified experts before making any investment decisions.
