Markets Stage Impressive Recovery to End in Positive Territory
Indian equity markets displayed remarkable resilience on Monday. They shrugged off early losses to finish the trading session with solid gains. The day began on a weak note, with selling pressure intensifying during the initial hours. However, a strong rebound in leading stocks across various sectors completely reversed the downward trend as the session progressed.
This powerful recovery propelled the benchmark indices closer to their daily peaks. The Nifty 50 index concluded at 25,790.25, registering a gain of 0.42 percent. The Sensex ended at 83,878.17, climbing 0.36 percent higher.
Key Market Drivers and Tuesday's Outlook
Market participants will closely monitor several factors on Tuesday. Updates regarding the India-US trade agreement will be in focus. US Ambassador Sergio Gor shared optimistic comments, which significantly boosted market sentiment during Monday's latter half. Ambassador Gor emphasized that no nation is as crucial to the United States as India. He stated both countries are actively working to finalize a trade pact.
His remarks are viewed as a positive diplomatic outreach. They come amid recent tensions over tariffs and H1B visa policies. Investors will also track gold and silver prices, which soared to record highs on Monday.
Ajit Mishra, SVP of Research at Religare Broking Ltd, provided his perspective. He mentioned markets will react to earnings reports from major IT firms like TCS and HCL Tech during early Tuesday trading. Geopolitical events and ongoing trade discussions will remain important. Given the current environment of mixed signals and high volatility, Mishra recommends a selective, stock-specific approach combined with disciplined risk management.
Technical Analysis and Trade Setup
Rupak De, Senior Technical Analyst at LKP Securities, analyzed the market's technical structure. He noted that significant buying activity at the day's low triggered a swift recovery on Monday. The daily chart shows the index forming a piercing line pattern. This indicates a potential bullish reversal after several days of decline.
The hourly chart reveals the Relative Strength Index (RSI) has moved out of oversold territory. This suggests early signs of a recovery phase. However, De cautions that the buying seen in this half session may not change the overall market sentiment. He remains watchful as the Nifty 50 faces resistance in the 26,000 to 26,100 range. Selling pressure could re-emerge at these levels. Immediate and crucial support lies at 25,650 on the lower end.
Record Highs for Gold and Silver
Gold and silver prices on the Multi Commodity Exchange (MCX) hit unprecedented highs on Monday. This rally tracked strong gains in international bullion markets. Safe-haven demand increased due to uncertainty surrounding a criminal probe into Federal Reserve Chair Jerome Powell by the Trump administration.
The MCX gold rate ended more than 2 percent higher, nearing ₹1.42 lakh per 10 grams. MCX silver price jumped over 6 percent, closing slightly above ₹2.68 lakh per kilogram.
Expert Stock Recommendations for Tuesday
Market experts have recommended eight stocks for intraday trading on Tuesday. The recommendations come from Sumeet Bagadia of Choice Broking, Ganesh Dongre of Anand Rathi, and Shiju Koothupalakkal of Prabhudas Lilladher.
The recommended intraday stocks are:
- Home First Finance Company India Ltd
- State Bank of India (SBI)
- Dr Reddys Laboratories Ltd
- Infosys Ltd
- HDFC Bank Ltd
- Coal India Ltd
- Hindustan Unilever Ltd (HUL)
- Coforge Ltd
Sumeet Bagadia's Picks
Home First Finance Company India Ltd: Bagadia suggests buying at ₹1,062. He sets a stop-loss at ₹1,025 and a price target of ₹1,136. He notes the stock shows early signs of a trend reversal after a prolonged correction. Price action indicates a short-term base formation near recent lows, signaling emerging buying interest.
State Bank of India (SBI): Bagadia recommends buying at ₹1,015. The stop-loss is placed at ₹980, with a target of ₹1,085. He observes the stock is showing recovery signs after retesting its all-time high zone and finding support. Renewed upward momentum suggests accumulation at lower levels.
Ganesh Dongre's Selections
Dr Reddys Laboratories Ltd: Dongre advises buying at ₹1,216. The stop-loss is ₹1,190, with a target of ₹1,260. He points to a strong bullish pattern and a solid support base at ₹1,190, reinforcing positive sentiment.
Infosys Ltd: Dongre recommends buying at ₹1,595. The stop-loss is ₹1,570, and the target is ₹1,660. He highlights a notable bullish pattern and strong support at ₹1,570, indicating potential for a price retracement.
HDFC Bank Ltd: Dongre suggests buying at ₹937. The stop-loss is ₹920, with a target of ₹980. He notes a strong bullish pattern and support at ₹920, showing signs of renewed strength.
Shiju Koothupalakkal's Choices
Coal India Ltd: Koothupalakkal recommends buying at ₹432. The target is ₹460, with a stop-loss at ₹422. He observes a flag pattern on the daily chart with a bullish candle formation and improved volume, suggesting further upside.
Hindustan Unilever Ltd (HUL): Koothupalakkal advises buying at ₹2,406. The target is ₹2,520, with a stop-loss at ₹2,360. He notes a decent revival from the ₹2,270 zone and a move past the 200-period MA, improving the bias for further gains.
Coforge Ltd: Koothupalakkal suggests buying at ₹1,697. The target is ₹1,785, with a stop-loss at ₹1,662. He highlights signs of picking up after stabilization near ₹1,640, with the RSI recovering from oversold territory to signal a buy.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
