Indian equity benchmarks closed lower on Monday, weighed down by a mix of global geopolitical caution and domestic debt market concerns. The key indices surrendered early gains to end in the red.
Geopolitics and Debt Supply Dampen Sentiment
Renewed comments from former US President Donald Trump regarding potential tariff increases on Indian imports, linked to India's ongoing purchases of Russian oil, injected a note of caution into global risk appetite. This geopolitical overhang kept buyers on the sidelines.
Simultaneously, domestic bond yields moved higher after the announced size of state governments' borrowing programme exceeded market expectations. This raised supply-side concerns in the debt market, which in turn kept equity sentiment subdued.
Market Performance: Key Indices in the Red
The session ended with losses across the board. The Nifty 50 index finished 78 points lower at 26,250. The BSE Sensex was not spared either, shedding 322 points to close at 85,439. The banking sector benchmark, the Bank Nifty index, declined by 106 points and settled at 60,044.
Technical Outlook: Support Holds, Upside Target Intact
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, maintained a positive stance on the market's underlying structure. She noted that the Nifty 50 is sustaining above the 26,200 level, keeping the near-term target of 26,500 alive.
"The Nifty 50 index once again witnessed resistance near the 26,350 zone and, amid some volatility, slipped down to end near the 26,250 level," Parekh said. "The bias is maintained intact and the overall optimistic approach is sustained."
She identified the immediate support for the Nifty at 26,150, with a crucial cushion at the 50-day Exponential Moving Average (EMA) level of 25,900. The resistance is placed at 26,400.
For the Bank Nifty, Parekh stated that the index faced resistance near 60,400 before profit-booking pulled it down. The sentiment remains positive, with immediate support seen around 59,500 and a major support base at the 50-day EMA near 58,700. She expects a daily range of 59,700 to 60,500 for the index.
Intraday Stock Picks from Vaishali Parekh
For Tuesday's trading session, Vaishali Parekh recommended three stocks for investors to consider:
1] Delhivery: Buy at ₹411, Target ₹420, Stop Loss ₹405. The stock is poised for an uptrend after a period of consolidation.
2] Religare Enterprises: Buy at ₹258, Target ₹270, Stop Loss ₹254. The chart suggests the stock is forming a higher bottom, indicating potential for a sharp upward move.
3] DLF: Buy at ₹712, Target ₹725, Stop Loss ₹705. The technical pattern shows signs of bottoming out around the ₹700 levels.
Disclaimer: This information 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.
