India's benchmark equity indices, the Sensex and Nifty, concluded a truncated trading week in negative territory, marking their second straight week of losses. The downturn was primarily driven by foreign investors turning net sellers and cautious global market cues, which overshadowed positive developments like progress in the India-US trade deal.
Market Performance and Analyst Outlook
During the week, the broader market sentiment remained subdued. The BSE Sensex slipped 0.11% to settle at 83,216.28 points, while the Nifty 50 edged lower by 0.07% to close at 25,492.30. Both benchmarks witnessed a decline of over 0.80% for the week.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, provided a technical perspective on the market's movement. She noted that after a weak morning session, the Nifty 50 index staged a strong recovery after finding support near its 50-day exponential moving average (50EMA) around the 25,320 zone. This recovery has improved the near-term sentiment.
Parekh emphasized that the Nifty 50 needs to convincingly cross the 25,750 level to establish a stronger bullish bias and pave the way for further gains towards targets of 26,100 and 26,500. She also highlighted that the index has a solid support base at the 25,300 mark.
Bank Nifty and Key Levels to Watch
Commenting on the banking index, Parekh observed a strong bounce back in the Bank Nifty from the 57,160 level. A close above 57,800, coupled with active participation from PSU banks, indicates potential for follow-through action.
However, she stressed that a decisive breach above the tough resistance at 58,500 is crucial to expect a fresh upward move towards the 60,000 level. On the downside, the Bank Nifty has a key support level near its 50EMA at 56,500, which must be sustained.
For the immediate trading session, Parekh sees support for Nifty at 25,350 and resistance at 25,700. The Bank Nifty is expected to trade in a daily range of 57,500 to 58,500.
Intraday Stock Picks from an Expert
For traders looking for intraday opportunities, Vaishali Parekh of Prabhudas Lilladher has recommended three stocks to buy today.
Belrise Industries: Buy at ₹149 with a target price of ₹160 and a stop loss set at ₹144.
Apeejay Surrendra Park Hotels: Buy at ₹147, aiming for a target of ₹152, with a stop loss at ₹143.
Garden Reach Ship Builders (GRSE): Buy at ₹2560, with a target of ₹2800 and a stop loss at ₹2450.
Disclaimer: This market analysis is for educational purposes only. The views and recommendations are those of the individual analyst and not of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions, as market conditions are dynamic and individual circumstances may vary.
