Indian equity benchmarks took a breather on Monday after three consecutive sessions of gains, settling almost unchanged as investors adopted a wait-and-watch approach ahead of the crucial Bihar election outcome.
Market Performance and Key Levels
The 30-share BSE Sensex managed to eke out a marginal gain of 12 points or 0.01%, closing at 84,479. Meanwhile, the broader NSE Nifty ended the session with a slight increase of 3.35 points or 0.01%, settling at 25,879.15.
According to market analysts, while the underlying sentiment remains positive due to factors like the end of the US government shutdown, expectations of tariff relief for India, and low inflation data, profit-booking emerged as investors turned cautious before the Bihar election results. Additional pressure came from foreign institutional selling and a weakening rupee against the US dollar.
Expert Technical Analysis
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, noted that the Nifty briefly touched the 26,000 mark during intraday trading but failed to sustain the momentum. The index needs to decisively cross the 26,100 level to continue its upward movement, she emphasized.
"The index has witnessed a decent pullback from the 25,350 zone to improve the bias and further, a decisive move past the 26,100 is necessary to carry on with the positive move," Parekh stated. She identified the near-term support zone at 25,700, which needs to be maintained to keep the overall bias positive.
Bank Nifty and Trading Recommendations
The banking sector index faced resistance at higher levels, with Parekh noting that Bank Nifty made another attempt to breach the 58,500 hurdle but encountered profit-booking. However, the index managed to close near 58,400, maintaining a positive bias.
For intraday trading, Parekh recommended three stocks:
Varun Beverages: Sell at ₹455 with target at ₹440 and stop loss at ₹462
Bharat Heavy Electricals Limited (BHEL): Sell at ₹285 with target at ₹278 and stop loss at ₹290
Fertilisers And Chemicals Travancore (FACT): Buy at ₹907 with target at ₹940 and stop loss at ₹880
Market participants are now closely watching the Bihar election outcome, which could determine the near-term direction of Indian equities. The daily support for Nifty is seen at 25,700 levels, while resistance is positioned at 26,100 levels. Bank Nifty is expected to trade in the 57,800-59,000 range.
