Indian equity markets are navigating a phase of cautious sentiment, with key indices holding crucial support levels while facing significant overhead resistance. The market outlook remains guarded due to a combination of elevated geopolitical tensions, renewed concerns over tariffs, and persistent foreign portfolio investor outflows.
Market Outlook: Key Support Levels in Focus
According to Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, the overall market sentiment is cautious to positive. The Nifty 50 index is sustaining above its immediate support at 26,000 and the 50-day exponential moving average (DEMA) support placed at 25,900. Parekh emphasized that the 50-stock index must maintain this level to bolster bullish confidence and potentially aim for the 26,500 mark in the near term.
"The Nifty 50 witnessed another sluggish session, encountering resistance near the 26,180 zone intraday. It ended near 26,140, displaying a doji pattern on the daily chart while keeping the bias intact," Parekh commented. She noted that with IT stocks among the gainers, the index's major support lies at the 50-DEMA level of 25,900. Sustaining this is vital for the positive bias, with an upside target of 26,500.
Bank Nifty's Rangebound Movement
Turning to the banking index, Parekh observed that the Bank Nifty erased some gains amid slight volatility, ending the session near the 60,000 mark in a rangebound movement. The bias remains positive, with hopes for a revival in coming sessions. The index has crucial support at its 50-DEMA level of 58,700. For an upward move to continue, the near-term support around 59,500 needs to hold firm.
Parekh identified the immediate support for the Nifty 50 at 26,000 and resistance at 26,300. For the Bank Nifty, the expected daily trading range is between 59,700 and 60,500.
Intraday Stock Recommendations from Vaishali Parekh
For today's trading session, Vaishali Parekh has recommended three stocks for investors to consider:
1. Bharat Bijlee: Recommended action is to buy at ₹2865, with a target price of ₹3050 and a stop loss set at ₹2800.
2. Larsen and Toubro (L&T): Recommended action is to buy at ₹4149, with a target price of ₹4300 and a stop loss set at ₹4080.
3. Tata Consultancy Services (TCS): Recommended action is to buy at ₹3270, with a target price of ₹3500 and a stop loss set at ₹3200.
Precious Metals Rally on Safe-Haven Demand
In commodity markets, spot gold and silver prices have climbed to one-week highs. Gold reached $4,497 per ounce and silver hit $81.40 per ounce. This rally is primarily driven by safe-haven inflows following heightened geopolitical uncertainty after the U.S. capture of Venezuela's president.
Silver's surge of over 6% received additional support from China's export controls on the metal and former U.S. President Donald Trump's threats to resource-rich nations like Greenland, Cuba, and Mexico. This underscores the intensifying global competition for critical resources. The structural rally in silver is sustained by a supply-demand imbalance, constrained mine output, and rising industrial consumption.
Disclaimer: This article is for educational purposes only. The views and recommendations are those of the individual analyst and not of Mint. Investors are strongly advised to consult certified experts before making any investment decisions.
