The Indian equity market is navigating a phase of careful consolidation with a slight bearish tilt as the December series futures and options (F&O) expiry approaches. Profit booking, adjustments related to the expiry, and typically thin year-end liquidity are driving the current sentiment. Traders should brace for heightened intraday volatility, especially in the second half of the trading session.
Market Indices Under Pressure
The Nifty 50 index extended its losses for the third consecutive session, forming a pattern of lower highs and lower lows, which signals short-term weakness. According to Nilesh Jain of Centrum Broking, the index slipped below its immediate support at the 21-day moving average near 26,000, which is now expected to act as a resistance level. However, it found support around the 50-DMA at approximately 25,920. With the monthly expiry in play, Jain anticipates the Nifty to trade in a range of 25,800 to 26,100. The India VIX, a fear gauge, spiked sharply by 7% to 9.70, indicating rising market anxiety.
On the banking front, the Bank Nifty ended negatively at 58,932 after a volatile session. Hrishikesh Yedve of Asit C Mehta noted the formation of a small red candle with shadows, pointing to short-term uncertainty. He identified 59,800 and 60,115 as key hurdles, while the 58,700–58,800 zone is a crucial demand area. His advice to short-term traders is to buy near support and sell near resistance.
Commodities and Currency See Corrections
The bullion market witnessed a significant correction on Monday. Gold prices on the Multi Commodity Exchange (MCX) fell by around ₹5,000 to settle at ₹1,34,887 per 10 grams. Jateen Trivedi of LKP Securities attributed this to profit booking after COMEX gold failed to hold above $4,550 and MCX gold faced resistance at ₹1,40,500. He expects gold to remain volatile, trading between ₹1,35,000 and ₹1,42,000 in the near term, with the Federal Reserve's meeting minutes being a key trigger.
Silver prices also retreated, finishing ₹529 lower at ₹2,23,900 per kg on MCX. This is a notable drop from its new peak of ₹2,54,174 hit earlier on Monday. Sugandha Sachdeva of SS WealthStreet described the recent rally as a structural shift driven by physical scarcity and strong industrial demand, particularly from Asia. She highlighted a growing disconnect between paper and physical markets, evidenced by Shanghai silver trading at a premium to COMEX during the Western holiday.
In the digital asset space, Bitcoin saw strong profit-booking, with its price slipping from ₹78,90,017 to approximately ₹78,35,321, a drop of nearly ₹55,000 from its Sunday close.
The Indian Rupee traded weakly near the 90 mark against the US Dollar, influenced by the holiday season. Trivedi expects the rupee to move in a range of 89.45 to 90.40, guided by commodity price movements and foreign institutional investor (FII) activity.
Expert Stock Picks for Intraday Trading
Amid the cautious backdrop, market experts have identified several potential opportunities for intraday traders. Here are eight stock recommendations for today:
Sumeet Bagadia of Choice Broking recommends:
- Graphite India: Buy at ₹602, target ₹646, stop loss ₹580.
- SCI (Shipping Corporation of India): Buy at ₹234, target ₹250, stop loss ₹226.
Ganesh Dongre of Anand Rathi suggests:
- AU Small Finance Bank: Buy at ₹988, target ₹1020, stop loss ₹970.
- BSE (Bombay Stock Exchange): Buy at ₹2625, target ₹2750, stop loss ₹2570.
- Federal Bank: Buy at ₹262, target ₹270, stop loss ₹252.
Shiju Kuthupalakkal of Prabhudas Lilladher advises:
- RateGain: Buy at ₹667.45, target ₹705, stop loss ₹652.
- Zaggle Prepaid: Buy at ₹360, target ₹384, stop loss ₹350.
- URGO Capital: Buy at ₹180, target ₹194, stop loss ₹176.
Disclaimer: This information is for educational purposes only. The views and recommendations are those of individual analysts and broking firms. Investors are strongly advised to consult certified experts before making any investment decisions.
