Indian Stock Market Stages Impressive Comeback
The Indian stock market displayed remarkable resilience on Monday, bouncing back strongly after a period of significant weakness. Key benchmark indices decisively ended a five-day losing streak, closing higher as optimism surrounding the India-US trade deal fueled buying interest. This positive shift in sentiment provided a much-needed boost to investor confidence.
Indices Register Solid Gains
The Nifty 50 index climbed 106 points to settle at 25,790. Meanwhile, the BSE Sensex shot up by 301 points, closing at 83,878. The Bank Nifty index also finished in positive territory, gaining 198 points to reach 59,450. These gains marked a clear reversal from the recent downtrend.
Sectoral Performance Shows Mixed Trends
Sectoral performance was varied during the session. Realty and pharmaceutical stocks faced selling pressure initially. However, later in the day, buying interest emerged in metals, financials, and FMCG stocks. This buying helped stabilize the broader market. Mid-cap and small-cap indices managed to recover from early weakness, ending the session broadly flat.
Technical Outlook Improves Post-Recovery
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, noted that market sentiment has improved following Monday's strong recovery. The Nifty 50 index ended in the green after briefly slipping below the 25,500 mark. This movement indicates that the index did not respect the crucial 20-day exponential moving average support placed at 25,530.
Parekh highlighted that the Nifty 50 index now has vital support positioned at the 25,000 zone, near the important 200-period moving average. On the upper side, the index faces a significant hurdle at the 50-day exponential moving average level of 25,900. A decisive close above this level is needed to improve the overall bias.
Regarding the Bank Nifty index, Parekh observed that it witnessed a weak morning session, slipping to test the important 50-day exponential moving average at the 58,900 zone. The index then staged a strong bounce back, closing near 59,450. This recovery has helped improve the bias to some extent. The Bank Nifty has so far sustained near the important near-term support of 58,800, maintaining the overall bias intact. A decisive close above the 60,000 zone is required to trigger a fresh upward move in the coming days.
Parekh stated that immediate support for the Nifty 50 index is located at 25,650, with resistance at 26,000. The Bank Nifty is expected to have a daily range of 59,000 to 60,000.
Stock Recommendations for Today
Vaishali Parekh recommended three stocks for intraday trading today:
- IndusInd Bank: Buy at ₹905.45, target ₹950, stop loss ₹884.
- NMDC: Buy at ₹81.75, target ₹86, stop loss ₹80.
- Oil India Ltd: Buy at ₹425.60, target ₹445, stop loss ₹416.
Gold and Silver Prices Steady After Record Highs
Gold and silver prices in the international market steadied on Tuesday after surging to record high levels in the previous session. Concerns over the Federal Reserve's independence drove the rally, as the Donald Trump administration threatened the central bank with a criminal indictment.
Spot gold price eased to near $4,588 an ounce after jumping 2% in the previous session. Silver prices dropped 1.2% after surging by more than 6% on Monday.
MCX gold and silver prices also hit record highs, tracking the rally in international bullion prices. A weak US dollar supported bullion prices amid deepening uncertainty over a Trump administration criminal probe into Federal Reserve Chair Jerome Powell. MCX gold rate gained over 2% to near ₹1.42 lakh per 10 grams, while MCX silver price jumped more than 6% to above ₹2.68 lakh per kg.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
