Indian Stock Market Set for Cautiously Optimistic Trading Session
The Indian equity markets are anticipated to exhibit a flat to mildly positive trading pattern on Thursday, as investor sentiment remains buoyed by several supportive factors. The ongoing optimism surrounding the India–US interim trade framework continues to provide a fundamental underpinning to market confidence, fostering a constructive environment for equities.
Key Factors Driving Market Sentiment
Foreign Portfolio Investors (FPIs) have maintained their consistent buying streak, injecting substantial liquidity into the system and creating a meaningful cushion against potential volatility. This sustained inflow from foreign investors reflects growing confidence in India's economic prospects and market stability.
Simultaneously, the Indian rupee has demonstrated notable stability, which has effectively alleviated previous currency-related concerns. This rupee steadiness has further strengthened foreign investor confidence, making Indian assets more attractive to international capital.
Domestic Institutional Investors (DIIs) continue to provide steady participation, helping to mitigate sharp downside risks and supporting overall market resilience. With benchmark indices consolidating near record levels, the broader market setup remains fundamentally constructive, though price action is expected to remain range-bound in the absence of fresh catalysts.
Technical Analysis and Market Outlook
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, maintains a positive outlook on Indian market sentiment but emphasizes the need for decisive technical breakthroughs to trigger sustained upward momentum.
Nifty 50 Analysis: "The Nifty 50 index has been consolidating near the 25,950 zone with rangebound sessions visible, while maintaining positive bias intact," Parekh explained. "The index is sustaining above the crucial near-term support of the important 50-Day Exponential Moving Average (DEMA) zone at 25,680 level, which needs to be maintained. With the undertone remaining strong, the index would require a decisive breakout above the resistance barrier of 26,350 levels to trigger fresh upward movement in coming days."
Parekh identified immediate support for Nifty 50 at 25,800 and resistance at 26,100.
Bank Nifty Analysis: Regarding the banking index, Parekh noted: "The Bank Nifty index has been hovering near the 60,700 zone for the last three sessions with consolidation visible within a narrow range, maintaining positive bias intact. The index would need a decisive move past the near-term resistance of 60,900 level to trigger fresh rise in coming days. On the downside, the index has important near-term support positioned near the 50-DEMA at 59,400 level, which needs to be sustained for further upward movement."
The Bank Nifty is expected to have a daily trading range between 60,300 and 61,300.
Intraday Stock Recommendations for Thursday
Vaishali Parekh has recommended three specific stocks for intraday trading on Thursday:
- Kabra Extrusion Technik: Buy at ₹252, Target ₹270, Stop Loss ₹245
- SJVN: Buy at ₹75, Target ₹81, Stop Loss ₹72
- Infosys: Sell at ₹1,470, Target ₹1,440, Stop Loss ₹1,490
Disclaimer: This market analysis and stock recommendations are provided for educational purposes only. The views and recommendations expressed are those of individual analysts or broking companies and do not represent investment advice. Investors are strongly advised to consult with certified financial experts before making any investment decisions.
