The Indian stock market is poised for a session of cautious to mildly bullish trading today, extending the rebound witnessed in the previous session at a measured pace. This outlook is influenced by overnight gains in U.S. equities and a generally positive tone across Asian markets during early trade. While short-term sentiment has shown improvement, risk appetite remains selective due to lingering uncertainties surrounding U.S. policy actions and potential tariff measures targeting countries that import Russian oil. Domestically, institutional flows continue to provide a stabilizing force, underscoring the underlying resilience of the market even as foreign institutional investors (FIIs) maintain a cautious stance.
Market Sentiment and Technical Indicators
Sumeet Bagadia, Executive Director at Choice Broking, assesses the current Indian stock market sentiment as sideways to positive. He notes that the Nifty 50 index is exhibiting selling pressure at higher levels, suggesting a need for a stock-specific approach. Investors are advised to focus on equities demonstrating strong technical chart patterns for potential opportunities.
Nifty 50 Outlook and Volatility
Discussing the Nifty 50's outlook, Bagadia highlighted that the index chart indicates selling pressure at elevated levels and a lack of follow-through buying. Immediate resistance is identified in the 25,400–25,450 zone, with crucial support situated at 25,100–25,150. The daily Relative Strength Index (RSI) currently stands at 33.82 and is trending upward, reflecting a mild improvement in momentum from oversold territories. However, the overall trend remains cautious, warranting careful navigation.
In a positive development, the volatility index, India VIX, declined by 3.12% to 13.35. This moderation signals easing volatility and reduced fear among market participants, contributing to a more stable trading environment.
Intraday Trading Strategy
For intraday traders, Bagadia pointed to derivatives data showing heavy call writing at the 25,400 strike and significant put writing at the 25,200 strike, making this zone a critical near-term pivot. Traders are recommended to adopt a cautious approach near key support levels and await a decisive breakout above resistance before initiating fresh directional positions.
Breakout Stock Recommendations for Today
Sumeet Bagadia has identified five breakout stocks with strong technical formations for consideration today. These recommendations are based on detailed chart analysis and key indicators.
APL Apollo Tubes
Buy at ₹1976, Target ₹2150, Stop Loss ₹1885. The share price of APL Apollo Tubes is trading around ₹1976, exhibiting a bullish higher high and higher low formation on the daily chart, indicating sustained upward momentum. The stock is comfortably positioned above its key 20-, 50-, 100-, and 200-day Exponential Moving Averages (EMAs), confirming a robust long-term uptrend.
Ashok Leyland
Buy at ₹190.28, Target ₹207, Stop Loss ₹181. Ashok Leyland's share price is trading around ₹190.28, maintaining a bullish higher-high and higher-low formation that signals a strong upward trajectory. Trading above its key EMAs further confirms the overall strength of the trend.
Federal Bank
Buy at ₹282.20, Target ₹308, Stop Loss ₹268. Federal Bank share price is trading at ₹282.20, displaying strong bullish technical formations and a robust base formation. It is trading above key EMAs and maintains a solid higher-high and higher-low structure. The stock recently consolidated, formed a bottom, took strong support at its 50-day EMA, and bounced back with a significant breakout of its previous higher high.
Nestle India
Buy at ₹1306, Target ₹1394, Stop Loss ₹1260. Nestle India's share price is trading around ₹1306, indicating strength within a strong technical chart formation. After a period of downside consolidation, the stock found firm support, broke out of its previous swing high, and is moving higher, forming a clear higher-high and higher-low structure. It is trading above all key EMAs.
Campus Activewear
Buy at ₹254.80, Target ₹172, Stop Loss ₹245. Campus Activewear's share price is trading around ₹254.80, showing strength after taking firm support at a previous demand zone. The stock recently staged a sideways range breakout on lower timeframes, closing above key resistance levels. While the RSI stands at 44.87, it reflects a healthy bounce from the oversold zone, signalling an emerging breakout of an uptrend.
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.
