Indian Stock Market in Wait-and-Watch Mode as Benchmarks Consolidate
The Indian stock market exhibited a cautious trading session on Thursday, moving within a tight range as investors adopted a wait-and-watch approach in the absence of fresh domestic catalysts. While overall market sentiment remained stable, benchmark indices struggled to maintain momentum at elevated levels, reflecting a distinct lack of follow-through buying despite earlier positive cues.
Trading activity remained highly selective and stock-specific throughout the session. Modest interest in export-oriented sectors and select cyclical stocks was effectively offset by profit-taking in recent outperformers, resulting in subdued performance across major indices. The Indian National Rupee (INR) traded within a defined range against the US Dollar (USD), indicating balanced demand-supply dynamics amid steady global market cues.
Market participants continue to remain on the sidelines, awaiting clearer signals from several key developments. These include global macroeconomic trends, patterns in foreign institutional investor flows, and further clarity regarding the progress of US-Iran negotiations. These factors are expected to determine the market's next decisive directional move.
Market Outlook: Sideways to Positive Trend
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market is currently exhibiting a sideways to positive trend, with the Nifty 50 index consolidating at higher levels. The technical expert suggested that intraday traders should focus on stocks demonstrating strength on technical charts. For investors preferring a stock-specific approach, Bagadia recommended buying breakout stocks for intraday trading opportunities.
Nifty 50 Technical Analysis and Outlook
Regarding the Nifty 50 index outlook, Sumeet Bagadia stated, "The Nifty 50 index is indicating indecision and a lack of strong directional momentum, before closing at 25,642.80, reflecting consolidation at higher levels. Immediate resistance lies in the 25,750–25,800 zone, while crucial support is in the 25,450–25,500 range."
He further added, "On the momentum front, the daily RSI stands at 51.68, signalling resilience and a neutral bias, with limited downside momentum at present. Derivative data indicate heavy put writing at the 25,500 strike along with strong call writing at the 25,700 strike, thereby establishing a well-defined near-term trading range."
Bagadia concluded his Nifty analysis by noting, "As long as the 50-stock index sustains above 25,500 on a closing basis, a selective buy-on-dips strategy may be considered, with a strict stop-loss placed at 25,450."
Bank Nifty Technical Analysis and Outlook
On the Bank Nifty index outlook, Bagadia commented, "The technical chart pattern of the Bank Nifty index suggests profit booking at higher levels and a lack of follow-through buying. It eventually closed at 60,063.65, highlighting consolidation with a mild negative bias."
He elaborated, "Immediate resistance is placed in the 60,300–60,400 zone, while the 59,700–59,800 support band remains critical for maintaining near-term stability in the index. On the daily charts, the RSI stands at 55.54, showing resilience despite the recent pullback, and on the weekly timeframe, the RSI remains in the bullish zone, supporting the index's ability to hold above the 60,000 mark."
Five Breakout Stocks Recommended for Intraday Trading
Sumeet Bagadia recommended buying these five breakout stocks for intraday trading based on technical analysis:
- APL Apollo: Buy at ₹2,182.10, Target ₹2,375, Stop Loss ₹2,080. The stock is trading with sustained strength within a long-term uptrend, having recently broken out from wider-range trendline resistance. It maintains position above all key moving averages (10-, 20-, 50-, and 200-day EMAs), confirming strong bullish momentum.
- Lupin: Buy at ₹2,218.50, Target ₹2,410, Stop Loss ₹2,122. The pharmaceutical stock demonstrates robust strength after completing a rounding bottom formation and delivering a decisive upside breakout from trendline resistance. Trading above its 50- and 200-day EMAs with RSI at 63.87 indicates positive momentum.
- Syrma SGS Technologies: Buy at ₹860.60, Target ₹940, Stop Loss ₹820. This stock shows significant strength after bouncing from strong bottom support aligned with its 200-day EMA. Currently trading above its 20-, 50-, and 200-day EMAs while maintaining a bullish higher-high and higher-low formation on weekly charts.
- DMart: Buy at ₹3,934.90, Target ₹4,260, Stop Loss ₹3,770. The retail giant shows signs of recovery after consolidating within a range and bouncing off firm bottom support. The stock has decisively broken its previous lower high with a strong daily candle close, signaling potential trend reversal.
- HFCL: Buy at ₹71.05, Target ₹78.25, Stop Loss ₹67.35. This stock exhibits strength after consolidating and bouncing off firm bottom support. Recently cleared trendline resistance with a strong daily candle close, signaling a bullish shift. Bullish RSI divergence at 60.96 confirms reversal from oversold zone.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies. Investors are advised to consult with certified financial experts before making any investment decisions.
