Indian Stock Markets Soar on Political Stability and Sector-Wide Rally
Indian equity markets witnessed a robust trading session on Monday, closing with significant gains as investor confidence surged following clear political developments in Bihar. The benchmark Sensex climbed by over 388 points, while the Nifty index moved closer to the psychologically important 26,000 level.
The widespread rally across multiple sectors was primarily driven by the NDA's decisive victory in Bihar, which market participants interpreted as a sign of policy stability and enhanced market reliability. This political clarity provided the necessary impetus for investors to increase their exposure to Indian equities.
Analysts Bullish on Market Outlook with Caveats
Abhinav Tiwari, Research Analyst at Bonanza, highlighted that market participants will closely monitor progress in India-US trade negotiations going forward. He noted that the current positive momentum is expected to continue, supported by stable domestic fundamentals and improving corporate earnings. However, he cautioned that volatility might persist due to ongoing global uncertainties and potential foreign selling pressure.
Rupak De, Senior Technical Analyst at LKP Securities, provided technical insights, stating that the index has broken out from a consolidation pattern on daily charts while maintaining its position above the 21EMA - a crucial short-term moving average. "The RSI is showing a bullish crossover on the daily chart, and the formation of a higher bottom indicates market strength. We expect the trend to remain strong in the near term, with potential targets at 26,200/26,350. On the lower side, support is established at 25,800," De explained.
Market Experts Identify Key Drivers and Opportunities
Vinod Nair, Head of Research at Geojit Investments, observed that markets have maintained their upward trajectory around the significant 26,000 psychological level as investors await strong catalysts for further movement. A potential trade agreement between India and the US remains a critical factor that market participants are monitoring closely.
"Currently, the risk-reward ratio appears largely favorable, supported by better-than-expected Q2 earnings from midcap companies. This has boosted confidence in a growth recovery and suggests potential earnings upgrades in the future," Nair added.
Top Stock Recommendations from Market Experts
Several market experts provided their intraday stock picks for Tuesday's trading session:
Sumeet Bagadia, Executive Director at Choice Broking, recommended:
Laurus Labs Ltd: Buy at ₹1,021.85 with stop loss at ₹986 and target of ₹1,094. The stock shows strong bullish momentum and is approaching its all-time high of ₹1,025.
FSN E-Commerce Ventures Ltd (Nykaa): Buy at ₹268.75 with stop loss at ₹259 and target of ₹290. The stock displays strong bullish momentum with a rounding bottom pattern formation.
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, suggested:
Piramal Pharma Ltd: Buy at ₹195 with stop loss at ₹189 and target of ₹204, showing bullish reversal patterns.
RBL Bank Ltd: Buy at ₹317 with stop loss at ₹310 and target of ₹335, demonstrating reversal price action formation.
Astral Ltd: Buy at ₹1,465 with stop loss at ₹1,430 and target of ₹1,520, exhibiting bullish reversal patterns.
Shiju Koothupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher, recommended:
One 97 Communications Ltd (Paytm): Buy at ₹1,332.90 with target of ₹1,385 and stop loss of ₹1,305, showing positive candle formation.
Suprajit Engineering Ltd: Buy at ₹469.40 with target of ₹495 and stop loss of ₹460, demonstrating pullback from 200 period MA.
TVS Motor Company Ltd: Buy at ₹3,475 with target of ₹3,600 and stop loss of ₹3,420, showing triple bottom formation on daily chart.
Disclaimer: The views and recommendations above are from individual analysts or broking companies, and not of Mint. Investors should consult certified experts before making investment decisions.
