Indian Stock Market Begins Thursday Session in Negative Territory
The domestic equity benchmarks commenced trading on a downward trajectory on Thursday, pressured primarily by technology companies. This decline reflects diminishing expectations for an imminent US interest rate reduction alongside growing apprehensions regarding artificial intelligence impacts. Market participants are also bracing for a hectic day of corporate earnings announcements.
Key Index Movements and Sectoral Performance
As of 9:25 AM IST, the Nifty 50 index retreated by 0.43% to settle at 25,846.5 points. Similarly, the BSE Sensex witnessed an identical decline of 0.43%, closing at 83,864.64 points. A broad-based selloff was evident across sectors, with twelve out of sixteen major indices trading in the red.
The Information Technology sector bore the brunt of the selling pressure, with the IT index plunging 3.6%. This extends a recent downtrend triggered by robust US employment data for January, which has substantially weakened near-term forecasts for Federal Reserve rate cuts. Following a 12.6% loss throughout 2025, the IT index has now declined an additional 10.7% so far in 2026.
The broader market segments mirrored the weakness, with both small-cap and mid-cap indices each registering a 0.6% drop during the session.
Technical Outlook and Market Analysis
Osho Krishan, Senior Analyst for Technical & Derivatives at Angel One, provided insights into the Nifty 50's trajectory. He noted that while positive global cues initially fueled a strong opening for Indian indices, the subsequent lack of follow-through momentum resulted in a subdued trading day. Despite this, underlying bullish sentiment persists, though the Nifty's approach toward the psychologically significant 26,000 level warrants caution.
Krishan observed that the index maintained its winning streak with a marginal 0.07% gain, closing above the 25,950 zone. The current price action indicates a period of relative calm, marked by trader hesitation around the crucial 26,000 milestone. This is evidenced by the formation of small-bodied candlesticks on the daily chart, typically signaling market uncertainty.
From a technical perspective, a decisive breakout above the 26,000 resistance could dramatically alter market dynamics, fostering a more aggressively bullish environment. In the near term, the support band between 25,880 and 25,850 is expected to cushion any short-term volatility. A further robust support layer exists within the bullish gap spanning 25,780 to 25,700, which may act as a safety net.
Conversely, the 26,000 mark stands as a formidable resistance barrier. A sustained move beyond this level could unlock potential for fresh long positions, possibly propelling the index toward 26,150 and higher in subsequent sessions. Krishan advises adopting a pragmatic stance toward recent developments and utilizing market dips as opportunities to accumulate long positions. He also highlights that diverse trading opportunities remain available for outperformance.
Stock Recommendations for Thursday Trading
Osho Krishan of Angel One identified two stocks for potential buying on Thursday:
- PG Electroplast Ltd: The stock has demonstrated renewed buying interest recently, ascending toward its 200-day exponential moving average after an extended consolidation phase. A strong rebound from oversold conditions suggests a V-shaped recovery pattern is emerging on the daily chart. Having exited its consolidation zone, the counter is anticipated to gain momentum shortly. Recommendation: BUY in the ₹610-600 range with a stop loss at ₹560 and target prices of ₹670-675.
- Max Healthcare Institute Ltd: This stock has rebounded from its previous swing low and surged above both its 20-day and 50-day exponential moving averages. Technically, the formation of an 'Inverted Head and Shoulders' pattern enhances the bullish outlook. Additionally, the MACD histogram indicates a bullish reversal signal on the daily timeframe. Recommendation: BUY in the ₹1,050-1,040 range with a stop loss at ₹990 and target prices of ₹1,120-1,140.
Disclaimer: The views and recommendations presented are those of individual analysts and broking firms, not of Mint. Investors are strongly advised to consult certified experts before making any investment decisions.
