Indian Stock Market Extends Gains on Economic Optimism
The Indian equity markets maintained their positive momentum for the third consecutive trading session on Thursday, January 29, closing firmly in the green. This sustained rally was primarily fueled by the Economic Survey's encouraging projection that the Indian economy remains on a robust growth trajectory, with expectations of expanding by approximately 7% in the fiscal year 2027. This optimistic outlook bolstered investor sentiment significantly, even as persistent geopolitical uncertainties continued to cast a shadow over global markets.
Market Performance Highlights
The benchmark indices recorded modest yet meaningful gains. The Sensex advanced by 222 points, translating to a rise of 0.27%, to settle at 82,566.37. Similarly, the Nifty 50 index climbed 76 points, or 0.30%, closing at 25,418.90. Among the prominent gainers within the Nifty 50 basket were Tata Steel, Larsen & Toubro (L&T), and Axis Bank, which led the upward charge.
Sectorally, the Nifty Metal index emerged as the standout performer, surging by an impressive 3%. Other key sectors such as Nifty Bank, Private Bank, Realty, and Financial Services also posted gains of up to one percent, reflecting broad-based buying interest. Market attention is now sharply focused on the upcoming Union Budget scheduled for Sunday, February 1, which is anticipated to provide further directional cues. Additionally, global market developments will remain under close scrutiny by investors and traders alike.
Technical Perspective and Expert Caution
From a technical standpoint, the Nifty continues to trade around its long-term moving average, specifically the 200-day exponential moving average (DEMA). Ajit Mishra, Senior Vice President of Research at Religare Broking, provided his analysis, noting that after successfully surpassing the immediate resistance level near 25,350, the Nifty 50 now appears well-positioned to gradually advance towards the 25,600 mark.
However, Mishra issued a word of caution, advising market participants to avoid becoming overly enthusiastic about the ongoing recovery. "Participants should remain selective, focusing on performing sectors and themes while keeping position sizes in check amid lingering geopolitical uncertainty and the approaching Union Budget," emphasized Mishra. This prudent approach is recommended to navigate the current market environment effectively.
Short-Term Stock Recommendations with Technical Rationale
Based on detailed technical analysis, here are three stocks identified for potential short-term opportunities:
BSE (Bombay Stock Exchange)
- Recommendation: Buy
- Target Price: ₹3,080
- Stop Loss: ₹2,740
Mishra highlighted that BSE exhibits a robust and structurally sound technical configuration. The stock price is firmly sustaining above a rising long-term moving average, which confirms the continuation of the primary uptrend. A recent breakout from a downward-sloping consolidation phase following a corrective period suggests healthy consolidation and profit-taking activity rather than any indication of trend exhaustion.
A decisive rebound from a clearly defined support zone, accompanied by improved trading volumes, points to fresh accumulation by stronger market hands. Momentum indicators are steadily improving, signaling growing upside momentum. The overall price structure reflects persistent buying interest during declines, thereby reinforcing the positive bias. "Considering the favourable risk–reward dynamics, the stock appears well placed for further upside, making current levels suitable for initiating or adding long positions with well-defined downside risk," stated Mishra.
Tata Steel
- Recommendation: Buy
- Target Price: ₹218
- Stop Loss: ₹194
Mishra noted that the metal sector is experiencing strong traction, and Tata Steel is moving in sync with this trend. After breaking out of a consolidation range, the stock is gradually moving higher while maintaining its position well above rising short- and medium-term moving averages. This pattern reflects strong and accelerating momentum.
The recent breakout is characterized by wide-range candles and a noticeable increase in trading volumes, indicating sustained buying interest, likely from institutional or stronger investors. Corrective moves have been relatively shallow, highlighting persistent demand near support levels. "As long as the stock holds above its key averages and trend supports, the technical structure continues to support further upside," Mishra explained.
The Ramco Cements
- Recommendation: Buy
- Target Price: ₹1,175
- Stop Loss: ₹1,060
According to Mishra, Ramco Cements continues to display a healthy bullish setup, with the stock price moving within a well-defined rising channel on the daily chart. After an extended period of consolidation, prices have decisively moved higher and are now comfortably positioned above key moving averages, pointing to improving trend strength.
The rebound from the 61.8% retracement level of the March–July rally underscores the stock's underlying resilience. Volume expansion during the breakout suggests genuine accumulation rather than short-term positioning. "With prices respecting ascending support zones, the broader bias remains constructive, suggesting the uptrend is likely to extend over the medium term," Mishra concluded.
Important Investment Disclaimer
This analysis is intended for educational purposes only. The views and recommendations expressed are those of the expert and do not necessarily reflect the opinions of the publication. Investors are strongly advised to consult with certified financial experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary significantly.
