Indian Stock Market Witnesses Sharp Correction Amid Broad-Based Weakness
The Indian stock market experienced significant selling pressure throughout the previous week, resulting in substantial declines across major indices. The benchmark Nifty 50 index fell more than 2.5% to settle at 25,048, while the BSE Sensex dropped nearly 2.4% to close at 81,537. This downward movement reflected widespread weakness throughout the market landscape.
Sectoral Performance and Market Breadth
Broad-based weakness was evident as all sectoral indices concluded the week in negative territory. The mid-cap and small-cap segments also suffered considerable erosion in investor wealth, indicating that the sell-off was not confined to large-cap stocks alone. From a sectoral perspective, realty, consumer durables, and capital market stocks emerged as the worst performers, declining by 11.33%, 6.55%, and 6.50%, respectively.
Foreign and Domestic Institutional Activity
Analyzing the flow of funds, Foreign Institutional Investors (FIIs) remained persistent sellers, offloading equities worth Rs. 14,652 crore. Conversely, Domestic Institutional Investors (DIIs) provided meaningful support to the markets with net inflows of Rs. 20,746 crore, which helped cushion the broader downside to some extent.
Technical Outlook and Expert Analysis
Nifty 50 Index Forecast
Speaking on the outlook for the Nifty 50 index, Dr Ravi Singh, Chief Research Officer at Master Capital Services, provided a detailed technical perspective. “The Nifty 50 index decisively slipped below its key 200-day Exponential Moving Average (EMA) and closed under it, signalling a negative trend,” he stated. “Adding to the weakness, the 21-day EMA has crossed below the 55-day EMA, confirming bearish momentum. The weekly chart and candlestick pattern suggest further downside in the near term.”
Dr Singh identified immediate support near 24,850, noting that a break below this level could drag the index toward 24,600. On the upside, resistance is seen at 25,250, with sustained strength above this potentially leading to a recovery toward 25,500. “Until then, a sell-on-rise strategy remains preferable,” he advised.
Bank Nifty Index Projections
Regarding the Bank Nifty index, Dr Singh commented, “The index slipped below the key 59,000 support level and also fell under its 55-day EMA, forming a bearish Marubozu candle on the weekly chart. This signals strong selling pressure at higher levels and indicates that the overall structure has weakened.”
The next crucial support lies at 58,000, which coincides with the 21-week EMA. A break below this may drag prices toward 57,400, supporting a sell-on-rise view. On the upside, 59,000 is now a critical resistance level, and only a sustained move above it could lead to a recovery toward 59,550.
Commodities and Currency Market Movements
Gold and Silver Rates Today
After climbing to new peaks during Monday's morning session, the four precious metals witnessed some profit-booking ahead of the previous session's close. That selling pressure continued into Tuesday's morning session. The COMEX gold rate today is down over 1.35% but is quoting above $5,000 per ounce. The COMEX silver rate today is down by around 7.50% and is currently quoting around $107 per ounce.
USD vs INR Outlook
Discussing the outlook for the US Dollar (USD) against the Indian National Rupee (INR), Jateen Trivedi, VP Research Analyst — Commodity & Currency at LKP Securities, said, “Rupee traded weak by 0.30 paise at 91.90 as persistent FII selling in the secondary markets continued to weigh on the currency. While domestic macro fundamentals remain relatively stable, elevated global uncertainties — including US trade tariff actions and geopolitical tensions around Greenland, Venezuela and the Russia-Ukraine conflict — are keeping sentiment cautious.”
Trivedi expects the rupee to remain under pressure in the near term, with a weak trading range of 91.35–92.25.
Stocks to Buy Today: Expert Recommendations
Regarding stocks to buy today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi; and Shiju Koothupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher — recommended these eight intraday stocks for today:
- NALCO
- Ashok Leyland
- JSW Steel
- Indus Towers
- UPL
- GNFC
- Voltas
- Swan Corp
Sumeet Bagadia's Stock Recommendations
1] NALCO: Buy at ₹371, Target ₹397, Stop Loss ₹358. NALCO share price is currently trading at ₹371, maintaining a strong upward trajectory. The stock has consistently formed higher highs and higher lows, reflecting sustained bullish momentum. It recently reached its all-time high of ₹382.65. A breakout above this level could further accelerate buying interest.
2] Ashok Leyland: Buy at ₹193, Target ₹207, Stop Loss ₹186. Ashok Leyland's share price is currently trading at ₹193. The stock is in a strong upward trend, supported by steady buying interest and sustained higher price action. The overall structure indicates strength, with consistent bullish candles and rising volumes confirming the momentum. The stock remains well-supported above its key moving averages — the 20-day, 50-day, 100-day, and 200-day EMAs — all of which are trending upward.
Ganesh Dongre's Buy or Sell Stocks
3] JSW Steel: Buy at ₹1170, Target ₹1220, Stop loss ₹1145. JSW Steel has been exhibiting a strong and consistent bullish pattern, indicating sustained investor interest and positive price momentum. The stock is currently trading at ₹1170 and has established a solid support base at ₹1145. This level has historically acted as a cushion, and recent price action suggests a reversal from it, reinforcing bullish sentiment.
4] Indus Towers: Buy at ₹413, Target ₹440, Stop Loss ₹400. The stock has exhibited a strong, notable, and continuous bullish pattern, offering another promising opportunity for short-term traders. The stock is currently priced at ₹413 and maintains a strong support at ₹400. The technical setup suggests a potential price retracement towards the ₹440 level.
5] UPL: Buy at ₹702, Target ₹740, Stop Loss ₹680. UPL has exhibited a strong, notable, and continuous bullish pattern, offering another promising opportunity for short-term traders.
Shiju Koothupalakkal's Intraday Stocks for Today
6] GNFC: Buy at ₹464, Target ₹486, Stop Loss ₹454. The stock has indicated a good recovery after the recent correction, taking support near the ₹443 level, and has witnessed a positive candle formation on the daily chart, with significant volume participation, improving the bias and suggesting a further rise. The RSI has bounced back from the highly oversold zone, signalling a buy, and with the chart technically looking good, it can expect further gains.
7] Voltas: Buy at ₹1315, Target ₹1385, Stop Loss ₹1285. The stock, after the steep correction, has stabilised near the ₹1275 zone and, with a revival witnessed, has improved the bias for a further upward move in the coming sessions. The RSI has recently moved into the oversold zone and is indicating a reversal, with a bias improving for a further rise.
8] Swan Corp: Buy at ₹410, Target ₹435, Stop Loss ₹400. The stock has witnessed a decent correction and shown signs of taking support near the ₹396 zone, with the current indication of a revival and significant volume participation to improve the bias and anticipate a further rise in the coming sessions.
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.
