Indian equity markets are poised for a cautious opening on Tuesday, mirroring soft global market sentiments. Key US indices closed lower as investors adopted a risk-off stance ahead of crucial economic data releases, including non-farm payrolls and inflation figures, which could shape future monetary policy. Asian markets also traded lower, with traders exercising caution before the Bank of Japan's upcoming policy decision.
Domestic Headwinds and Technical Support
On the home front, the market continues to grapple with persistent foreign institutional investor (FII) outflows and a rupee hovering near record lows. These factors pose significant near-term challenges. However, robust participation from domestic institutional investors (DIIs) and steady retail inflows are providing a crucial cushion against steeper declines. In this environment, analysts expect the market to respect key technical levels rather than trending aggressively in either direction.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, views the current market sentiment as cautious to positive. She noted that the Nifty 50 index demonstrated resilience by bouncing back after testing the 25,900 level, successfully reclaiming the psychological 26,000 mark.
Nifty 50 and Bank Nifty: Key Levels to Watch
According to Parekh, the Nifty 50 opened weak with a gap down but staged a steady recovery from lows near 25,900, sustaining an overall optimistic bias. The index now aims to retest its previous peak zone around 26,350. The crucial 50-day exponential moving average (DEMA) support is placed at 25,750. As long as the index holds above this level, the market is considered a "buy-on-dips" opportunity.
For the Bank Nifty, Parekh observed that the index remains confined to a narrow range, closing near 59,500 after opening around 59,000. A decisive breakout above the 59,700 resistance is needed to confirm conviction for an upward move towards targets of 61,300 and 63,000. The important support for Bank Nifty is at 58,800.
Parekh identified immediate support for the Nifty 50 at 25,900 and resistance at 26,200. The Bank Nifty is expected to trade in a daily range between 59,000 and 60,000.
Today's Stock Picks for Intraday Trading
Vaishali Parekh has recommended three stocks for intraday trading on Tuesday:
- RCF: Buy at ₹140, target ₹150, stop loss ₹136.
- Shriram Finance: Buy at ₹851, target ₹880, stop loss ₹830.
- Max Healthcare: Buy at ₹1083, target ₹1110, stop loss ₹1060.
Disclaimer: This information is for educational purposes only. The views and recommendations are those of the individual analyst. Investors are advised to consult certified experts before making any investment decisions.
