Indian Stock Markets Stage Impressive Turnaround
In a display of resilience, the Indian equity benchmarks, the Sensex and Nifty, executed a remarkable recovery during Tuesday's trading session on November 11. This marked the second consecutive day of gains for the indices, fueled primarily by growing optimism surrounding a potential US-India trade deal that buoyed market sentiment.
After spending the majority of the session in negative territory, both indices rebounded strongly to close with appreciable gains. The Sensex surged by 335.97 points, or 0.40%, to settle at 83,871.32. Mirroring this upward movement, the Nifty climbed 120.60 points, or 0.47%, to close at 25,694.95.
Sectoral Performance and Broader Market Trends
The market exhibited a mixed trend at the sectoral level, which kept traders actively engaged. IT, auto, and metal stocks emerged as the outperformers, leading the charge. In contrast, sectors such as financials, realty, and pharma ended the session on a subdued note.
The broader market presented a nuanced picture. The midcap index registered a gain of over half a percent, indicating healthy buying interest in select stocks. However, the smallcap index closed marginally lower, reflecting a phase of selective participation where investors were cautious and specific about their picks.
Expert Analysis and Market Outlook
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, interpreted Tuesday's market action as a sign of active participation that facilitated the turnaround. She expects the market bias to remain cautiously positive going forward.
"After a weak start in the morning session, hitting a low at 25450, the Nifty index witnessed a strong bounce back to close near the 25700 zone," Parekh stated. She added that the broader markets also indicated active participation, which helped ease the overall sentiment.
According to the analyst, the overall bias is maintained with a cautiously positive approach. She emphasized that a decisive breach above the 25750 zone could pave the way for a further rise towards targets of 26,100 and 26,500 levels in the coming days. For the near term, she identified a crucial support level at the 25,300 zone, which needs to be sustained.
Commenting specifically on the banking index, Parekh noted that the Bank Nifty witnessed a decent pullback from the 57,200 zone and then indicated a significant bounce from the 57,600 level during the intraday session. It gained momentum to close near the 58,150 zone, with its bias gradually improving. She anticipates a further upward move, with the overall approach remaining cautiously optimistic.
"The support from the current level is positioned near the 50EMA at the 56,700 level, which needs to be sustained," Parekh opined. "The support for the day is seen at 25,550 levels, while the resistance is seen at 25,900 levels. Bank Nifty would have the daily range of 57,800-58,800 levels."
Intraday Stock Recommendations from Vaishali Parekh
For today's trading, Vaishali Parekh of Prabhudas Lilladher has recommended three stocks to buy. The recommendations are as follows:
- IREDA: Buy at ₹149 | Target at ₹154 | Stop loss at ₹147
- Samvardhana Motherson: Buy at ₹104 | Target at ₹112 | Stop loss at ₹100
- Suzlon Energy: Buy at ₹58 | Target at ₹62 | Stop loss at ₹56
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
