The Indian stock market bounced back strongly on Monday after several days of decline. Key information technology and banking stocks powered the recovery, surprising many investors with their robust performance. This rebound demonstrates the underlying strength of India's domestic financial sector, even as global economic concerns continue to create uncertainty.
What Drove the Market Recovery?
Heavyweight IT companies led the charge upward after releasing encouraging quarterly updates. Their strong showing helped the market absorb persistent worries about potential U.S. tariff actions. These tariff threats include possible secondary duties connected to trade with Russia and Iran.
While tariff-related pressures remain, their impact has been limited so far. Continued buying by domestic institutional investors has provided crucial support, cushioning the market against moderate selling by foreign institutional investors. Export-focused sectors remain watchful, but resilient domestic consumption, steady services growth, and diversification in trade partners continue to bolster the broader economic outlook.
Technical Perspective on Market Movement
From a technical standpoint, the recent pullback appears to be a healthy correction within a larger upward trend. Key indices are respecting important support levels on higher timeframes. Improving corporate earnings momentum and sustained domestic institutional participation continue to limit downside risk. However, global headwinds and U.S. policy uncertainties may restrict aggressive upside movement in the near term.
Expert Analysis: Nifty and Bank Nifty Outlook
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes Indian stock market sentiment is currently sideways to positive. She notes the Nifty 50 index is trading in a tight range between 25,500 and 25,900. A clear breakout on either side would signal the next directional move.
Speaking about the Nifty 50 outlook, Parekh said, "The Nifty 50 index witnessed a positive morning session but faced resistance near the 25,870 zone. Gains faded as the day progressed, ending nearly flat around 25,700. The index has shown rangebound movement for the last five sessions, with the 50-EMA zone at 25,900 acting as a tough barrier. It has held above the near-term support of the 100-period MA at 25,600, with crucial support positioned near the important 200-period MA at 25,000. On the upside, it needs to breach above the 25,900 zone to establish conviction in coming days."
Regarding the Bank Nifty index, Parekh commented, "The Bank Nifty index sustained above the 60,000 zone during early trading and closed positively near 60,100. This movement comes ahead of important quarterly results from major banking stocks like HDFC Bank and ICICI Bank this weekend. The index has recovered well from the 50-EMA zone at 58,900. It needs a decisive breach above the 60,400 zone to trigger a breakout and potentially begin a fresh upward move in coming sessions."
Parekh identified immediate support for the Nifty 50 at 25,500, with resistance at 25,900. She expects the Bank Nifty to trade in a daily range of 59,600 to 60,700.
Today's Stock Recommendations
For intraday trading opportunities, Vaishali Parekh recommended three stocks:
- HPCL: Buy at ₹456, Target ₹475, Stop Loss ₹440. The stock has found strong support at the 100-DEMA and appears poised for an uptrend.
- HDFC Bank: Buy at ₹930, Target ₹950, Stop Loss ₹915. The stock is in the oversold zone and looks ready for a technical rebound.
- Federal Bank: Buy at ₹265, Target ₹280, Stop Loss ₹260. The stock is in a bull trend and seems set for the next round of upward momentum.
Global Context: Trump's Greenland Tariff Threats
U.S. President Donald Trump escalated his pursuit to acquire Greenland on Saturday, threatening multiple European nations with tariffs up to 25% until he achieves control of the Danish territory. Trump's threats emerged as thousands protested in Greenland's capital against his plan to acquire the mineral-rich Arctic island.
Additional protests occurred in Copenhagen and other Danish cities. The U.S. president directed his anger at Denmark, a fellow NATO member, along with several other European countries that have recently deployed troops to the vast autonomous territory, which has a population of 57,000.
If implemented, Trump's threats against Washington's NATO partners would create unprecedented tension within the alliance. Starting February 1, Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland would face a 10% tariff on all goods exported to the United States, Trump announced on his Truth Social platform.
"On June 1st, 2026, the Tariff will be increased to 25%. This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland," he wrote.
"These Countries, who are playing this perilous game, have put a level of risk in play that is not tenable or sustainable," Trump stated. "Therefore, it is imperative that, to protect Global Peace and Security, strong measures be taken so that this potentially perilous situation ends quickly, and without question."
Trump added that he was "immediately open to negotiation with Denmark and/or any of these Countries."
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies. We advise investors to consult certified experts before making any investment decisions.
