Indian Stock Market Closes Cautiously Amid Profit Booking and STT Review Hope
The Indian stock market concluded Tuesday's trading session on a cautious and range-bound note, as profit booking in key sectors like banking, information technology, and healthcare emerged as a significant drag on the major indices. This activity kept the overall market sentiment subdued, with investors opting for selective positioning rather than aggressive buying in the absence of strong global or domestic catalysts.
Market Sentiment Finds Support from NSE Official's Comments
However, market sentiment received a mild supportive undertone after a senior official from the National Stock Exchange (NSE) expressed optimism that the recent increase in the securities transaction tax (STT) might be reconsidered. The official cited representations made to the finance minister, offering a glimmer of hope to investors concerned about the tax hike's impact on trading costs.
Technical Outlook: Nifty 50 and Bank Nifty Analysis
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, provided insights into the current market dynamics. She believes the sentiment in the Indian stock market remains positive, with the Nifty 50 index gradually advancing towards the 26,000 mark. According to Parekh, a decisive close above 26,000 could propel the benchmark index towards the 26,200 to 26,300 zone.
Speaking on the Nifty 50 outlook, Parekh stated, "The Nifty 50 index is steadily progressing towards the 26,000 zone, with bias and sentiment improving in anticipation of further positive developments. Once the index confirms a decisive close above the crucial 26,000 level, it will establish conviction, potentially leading to further rises with targets of 26,200 and 26,300, while maintaining 25,750 as a key support zone."
Regarding the Bank Nifty, she noted, "The Bank Nifty index continues to oscillate within a narrow range of 60,500 to 60,800, with downside support at the 60,000 zone, which must be sustained to preserve the positive bias. A decisive breach above 60,800 could trigger a fresh upward movement, with targets of 61,500 and 62,000 achievable in upcoming sessions."
Parekh identified immediate support for the Nifty 50 at 25,800 and resistance at 26,100. For the Bank Nifty, she projected a daily range of 60,000 to 61,200.
Stock Recommendations for Intraday Trading
Vaishali Parekh recommended three stocks for intraday trading, providing specific buy levels, targets, and stop-losses:
- Colpal: Buy at ₹2,177, Target ₹2,230, Stop Loss ₹2,150
- Meghmani Organics: Buy at ₹56.80, Target ₹60, Stop Loss ₹55
- Vedanta: Buy at ₹690, Target ₹710, Stop Loss ₹680
Disclaimer: This article is intended for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms and do not represent Mint. Investors are advised to consult certified experts before making any investment decisions.
