Indian Stock Market Closes Higher with Cautious Optimism
The Indian stock market concluded Thursday's trading session on a cautiously positive note, as benchmark indices staged a relief-led rebound fueled by improving global market sentiment. This upward movement was primarily driven by easing trade-related concerns and supportive cues from Asian markets, which encouraged selective risk-on positioning among investors.
Broad-Based Participation Across Sectors
Market recovery witnessed broad-based participation across multiple key sectors including banking, automobiles, information technology, and metals. Mid-cap and small-cap stocks also joined the recovery rally, contributing to the overall positive market breadth. However, this optimistic tone was partially restrained by sustained weakness in the Indian rupee, which reflected continued dollar demand in the currency markets.
Investors found some comfort in the Reserve Bank of India's approach to currency management. The central bank is closely monitoring the pace of rupee depreciation rather than defending any specific exchange rate level, reinforcing confidence in what market participants perceive as a calibrated and orderly approach to currency management.
Technical Analysis: Nifty 50 and Bank Nifty Outlook
Nifty 50 Trading in Tight Range
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, maintains that the Indian stock market bias remains cautious as the Nifty 50 index continues to trade within a tight range of 25,000 to 25,500. According to Parekh, the index needs to achieve a decisive break above 25,500 to strengthen bullish conviction among market participants.
"The Nifty 50 index witnessed a highly volatile session, swinging both ways and finding resistance near the 25,435 zone," Parekh explained. "Thereafter, it showed good support near the 25,170 level to close on a positive note with bias overall maintained with a cautious positive approach."
Parekh emphasized that the index remains precariously positioned, with crucial major support located near the 24,900-25,000 zone. On the upside, she noted that the market would require a convincing and decisive breach above the 25,500-25,600 zone to expect further upward movement in the coming trading sessions.
Bank Nifty Shows Similar Pattern
Regarding the Bank Nifty index, Parekh observed similar patterns of fluctuation. "The Bank Nifty index witnessed high fluctuations, resisting near the 59,600 zone and maintaining above the 59,000 level," she stated. The index ended the session near the 59,200 level with bias maintained with a cautiously optimistic approach, with expectations of a pullback in coming sessions.
With major support positioned near the 58,700 level, Parekh indicated that the Bank Nifty would need to breach above the 60,200 zone to establish stronger conviction, after which further rises could be anticipated in subsequent trading days.
Key Support and Resistance Levels
According to Parekh's technical analysis:
- Nifty 50: Immediate support at 25,100 with resistance at 25,500
- Bank Nifty: Expected daily range between 58,500 and 60,000
Stock Recommendations for Intraday Trading
For investors considering intraday trading opportunities, Vaishali Parekh recommended three specific stocks with defined entry points, targets, and stop-loss levels:
- Larsen and Toubro: Buy at ₹3,793 with target of ₹3,920 and stop loss at ₹3,720
- SEQUENT: Buy at ₹201 with target of ₹212 and stop loss at ₹195
- Bharat Forge: Buy at ₹1,431 with target of ₹1,520 and stop loss at ₹1,398
Important Market Considerations
The current market sentiment reflects a delicate balance between improving global cues and domestic currency concerns. While selective buying across sectors indicates returning investor confidence, the restrained rupee performance continues to inject an element of caution into market dynamics.
Technical analysts emphasize that market direction in the near term will likely depend on whether key indices can break through identified resistance levels with conviction. The range-bound trading pattern suggests that investors are awaiting clearer signals before committing to more aggressive positions.
Disclaimer: This market analysis is for educational purposes only. The views and recommendations expressed are those of individual analysts and broking companies, not financial publications. Investors are advised to consult with certified financial experts before making any investment decisions.
