Indian Stock Market Wraps Up Eventful Week on a Positive Note
The Indian stock market concluded a highly eventful week, demonstrating a remarkable blend of volatility and resilience to finish in positive territory. The key benchmark indices managed to touch record highs, although they faced some profit-taking at those elevated levels. The overall sentiment was buoyed by supportive global cues, including softer US bond yields, renewed anticipation of an interest rate cut from the US Federal Reserve, and benign crude oil prices which helped soothe inflation fears.
Despite initial headwinds from a weakening Indian rupee and persistent outflows from Foreign Institutional Investors (FIIs), the mood shifted mid-week. Robust domestic inflows and growing confidence in the Fed's potential policy easing reignited buying interest, leading to a broad-based market rebound. The week's gains were primarily driven by the Pharma, PSU Banks, Media, and IT sectors, while the Realty, Consumer Durables, and Oil & Gas sectors underperformed.
Market Outlook: Nifty and Bank Nifty Trajectory
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, maintains a positive outlook on the Indian stock market. She believes the sentiment will remain optimistic as long as the Nifty 50 index sustains above the 26,000 mark. Parekh noted that the 50-stock index has established a solid base in the 25,800-25,750 band and is now poised to climb towards 26,500. A decisive close above this level could soon propel the benchmark index to 27,200.
Elaborating on the Nifty 50's outlook, Parekh stated, "The Nifty 50 index witnessed a range-bound session with overall consolidation visible at the peak zone of 26,200 level with bias and sentiment maintained with an optimistic approach and can expect further rise in the coming days." She identified the 25,750-25,800 band as a crucial support zone that needs to be held for the upward move to continue.
Regarding the Bank Nifty index, Parekh commented that after hitting a record high and experiencing a strong breakout, the index has been consolidating near the 59,800 zone. The bias remains intact, anticipating a further upward movement. She highlighted that most frontline banking stocks are well-positioned for gains. The index has its near-term support positioned near 58,600, with fresh upside targets of 61,400 and 63,500 levels in sight.
For immediate trading, Parekh identified 26,100 as support and 26,400 as resistance for the Nifty. The Bank Nifty is expected to trade in a daily range of 59,300 to 60,400.
Today's Stock Picks from Vaishali Parekh
For today's trading session, Vaishali Parekh has recommended three stocks for intraday buying. Here are her detailed recommendations:
- Laurus Labs: Buy at ₹1030, target ₹1060, Stop Loss ₹1005
- SRF: Buy at ₹2900, Target ₹3030, Stop Loss ₹2840
- LT Foods: Buy at ₹408, Target ₹423, Stop Loss ₹400
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
