Indian Stock Market Trades Subdued Amid Cautious Investor Sentiment
The Indian stock market exhibited range-bound and subdued trading activity on Wednesday, as investors maintained a cautious stance and adopted a wait-and-watch approach following recent sharp market swings and mixed global cues. Despite an initially aggressive reaction to the announcement of the India-US trade deal, the market has struggled to sustain conviction at higher levels, reflecting underlying uncertainty among participants.
Sectoral Performance Shows Divergence
Market movements revealed significant sectoral divergence during the session. Oil & Gas, consumer durables, metals, and automobile stocks recorded strong gains, demonstrating resilience and attracting buying interest. However, IT stocks faced sharp selling pressure, tracking weakness in global technology shares. Sentiment in the IT sector deteriorated particularly after AI startup Anthropic unveiled an end-to-end workflow automation productivity tool, rekindling concerns that rapid advances in artificial intelligence could disrupt traditional software business models and potentially weigh on industry-wide profitability.
The Indian Rupee traded within a narrow band against the US dollar, reflecting balanced demand-supply dynamics and the absence of fresh macroeconomic triggers. Overall, market sentiment remained neutral to mildly cautious, with participants consolidating recent gains while awaiting clearer direction from global developments and foreign fund flows.
Expert Analysis: Market Sentiment Shows Improvement
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market sentiment has improved as the Nifty 50 index is sustaining above the psychological 25,500 mark. The Choice Broking expert stated that the 25,500 to 25,600 zone is expected to remain a crucial support area for the 50-stock index and recommended a buy-on-dips strategy until the key benchmark index remains above this support band.
Technical Outlook for Nifty 50
Speaking on the outlook of the Nifty 50 index, Sumeet Bagadia elaborated, "The Nifty 50 index managed to hold above the key psychological 25,500 level, highlighting improving sentiment and active participation from buyers. From a technical perspective, the 25,500–25,600 zone now acts as an important near-term support area, where demand has consistently emerged. The strong close near the higher end of the day’s range indicates that bulls remain in control in the short term. However, the index is now approaching the critical 26,000 resistance zone, which represents a major psychological as well as technical supply area."
The Choice Broking expert added that a decisive breakout and sustained acceptance above 26,000 could validate further upside toward higher levels and strengthen the medium-term trend structure. Momentum indicators continue to reflect a positive bias, but trend confirmation will depend on Nifty’s ability to absorb supply near this key resistance band.
Technical Outlook for Bank Nifty
On the outlook of the Bank Nifty index, Bagadia commented, "The Bank Nifty outperformed the broader market and closed at 60,238, signalling strong relative strength in banking and financial stocks. The index sustained above the key 60,000 level, which now serves as important psychological and technical support, indicating continued confidence in the financial markets. The rebound from lower levels and sustained trade above major moving averages suggest that dip buyers remain active. From a structural standpoint, the 59,900–60,000 zone now acts as a strong demand area, and as long as Bank Nifty holds above this band, the short-term trend remains positive."
Bagadia emphasized that the Bank Nifty remains in a strong uptrend with a positive bias. Trend continuation will depend on its ability to hold above key supports and absorb supply near higher resistance levels.
Stocks to Buy Today: Five Breakout Recommendations
Regarding shares to buy today, Sumeet Bagadia recommended these five breakout stocks for intraday trading:
- Aarti Industries: Buy at ₹442.90, Target ₹480, Stop Loss ₹420. Aarti Industries' share price is showing strength after a sideways range and falling trendline breakout. The stock is trading above key EMAs, confirming a bullish shift.
- UPL: Buy at ₹758.70, Target ₹825, Stop Loss ₹724. UPL's share price is maintaining a bullish higher-high and higher-low formation. After finding strong support at its 200-day EMA and consolidating, the stock has broken out of a sideways range. It remains positioned above key 20-day and 100-day EMAs, confirming an upward trajectory. The RSI at 54.68 suggests healthy momentum with further upside potential.
- Voltas: Buy at ₹1419.50, Target ₹1560, Stop Loss ₹1350. Voltas' share is showing a strong recovery after consolidating in a sideways range. The stock found firm support at the bottom and has now delivered a decisive breakout from a sideways range. Currently trading above its key EMAs, the technical structure has turned bullish. The RSI at 56.90 confirms the reversal, supported by a positive daily chart divergence.
- BPCL: Buy at ₹382.45, Target ₹415, Stop Loss ₹364. BPCL's share price is showing strength following a breakout from a sideways range at lower levels. The stock has successfully bounced back from a strong support zone aligned with its 100-day EMA and is now trading above key EMAs, confirming a bullish shift. The RSI at 64.10 signals a healthy reversal from the oversold zone with upward momentum.
- NTPC: Buy at ₹367.25, Target ₹395, Stop Loss ₹353. NTPC share price is showing bullish intent after consolidating in a sideways range and delivering a strong trendline resistance breakout. The stock is trading above its key EMAs, which are sloping upward, confirming a rising trend. The RSI at 66.74 reflects strength, consistently finding support at the 50 mark and indicating accumulation on dips.
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.
