The Indian equity markets are poised for a steady opening on Tuesday, likely oscillating between flat and mildly positive territory. This cautious optimism is being supported by stable cues from global peers. The GIFT Nifty, an early indicator, is signaling a calm start for the Nifty 50 index in the 26,200 to 26,250 range.
Holiday-Thinned Trading to Guide Market Moves
Trading activity is anticipated to be subdued due to the holiday-shortened week. Consequently, market participation is expected to be selective, with investors conserving risk capital and focusing only on high-conviction opportunities. Sectors like financials, information technology (IT), and metals are projected to lead the market direction. This leadership stems from an improving global risk appetite, selective buying by foreign institutional investors (FIIs), and expectations of a supportive policy environment as the economy moves towards 2026.
Analysts, however, caution that elevated stock valuations combined with thin liquidity typical of holiday periods warrant a disciplined investment approach. In the current scenario, a 'buy-on-dips' strategy is favoured over taking aggressive, leveraged positions.
Technical View: Nifty and Bank Nifty Targets
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, stated that the market sentiment has strengthened significantly with the Nifty 50 index sustaining above the crucial 26,000 mark. She believes the benchmark is now heading towards the 26,450 level.
"The Nifty 50 index surged ahead with a substantial gap-up opening above 26,000 and extended gains gradually," Parekh commented. "Bias and sentiment have improved with participation from broader markets, indicating potential for further upward movement. The index has strong support near the 50-day exponential moving average (DEMA) around 25,750. With a strong pullback indication, the near-term target is 26,450."
For the Bank Nifty index, Parekh noted that it extended gains from the previous session, closing near 59,300. The bias is improving, and a decisive breach above 60,000 could confirm conviction for a further rise. With a positive trend, she anticipates targets of 61,300 and 62,700 in the coming days, with major support at the 50-DEMA level of 58,500.
Parekh identified the immediate support for the Nifty 50 at 26,050 and resistance at 26,350. The Bank Nifty is expected to trade in a daily range between 59,000 and 59,800.
Today's Stock Picks by Vaishali Parekh
For intraday trading on Tuesday, Vaishali Parekh recommended three stocks:
- Indian Bank: Buy at ₹788, target ₹820, stop loss ₹778.
- Varun Beverages: Buy at ₹486, target ₹505, stop loss ₹475.
- RVNL: Buy at ₹332, target ₹345, stop loss ₹327.
Disclaimer: This information is for educational purposes only. The views and recommendations are those of the individual analyst. Investors are advised to consult certified experts before making any investment decisions.
