Indian Stock Market Sees Volatile Session with Strong Recovery
The Indian stock market experienced significant volatility during Tuesday's trading session, characterized by roller-coaster movements that ultimately resulted in substantial gains for major indices. The benchmark Nifty 50 index concluded the day with an impressive gain of 127 points, while the Sensex surged higher by 320 points, demonstrating resilience amid fluctuating market conditions.
Sectoral Performance Highlights Divergent Trends
Among various sectors, the Metal Index emerged as the top performer, registering a substantial rally of 3.35% during the session. Conversely, the Media Index faced significant pressure, declining by over 1% to become the day's biggest loser. This divergence in sectoral performance underscores the selective nature of market movements and investor sentiment.
Technical Analysis Reveals Bullish Patterns
From a technical perspective, the Indian stock market demonstrated remarkable resilience after experiencing an early morning intraday dip. The markets found crucial support near the 24,900/81,000 levels and subsequently bounced back with considerable strength. From the day's lowest point, the market rallied impressively by over 300/950 points, showcasing robust buying interest at lower levels.
On daily charts, the index has formed a long bullish candle, while intraday charts reveal a promising reversal pattern. These technical formations are largely interpreted as positive indicators, suggesting potential continuation of the upward momentum in subsequent sessions.
Market Outlook: Expert Perspectives on Key Levels
Nifty 50 and Sensex Technical Analysis
Shrikant Chouhan, Head of Equity Research at Kotak Securities, provided detailed insights regarding the outlook for Nifty 50 and Sensex. He emphasized that 25,000/81,400 and 24,900/81,000 would serve as crucial support zones for the markets. As long as trading remains above these critical levels, the formation of a pullback is likely to continue.
On the higher side, Chouhan identified 25,200/81,800 as the immediate resistance zone for bullish traders. A successful breakout beyond this level could potentially propel the market toward the 25,300-25,350/82,200-82,400 range. However, he cautioned that sentiment could shift if the market falls below the 24,900/81,000 support level, potentially prompting traders to exit their long positions.
Bank Nifty Technical Perspective
Vatsal Bhuva, Technical Analyst at LKP Securities, analyzed the Bank Nifty index, noting that it closed with a long bullish candlestick on the daily chart, indicating substantial buying interest. The index discovered support near the 58,100 zone and witnessed a sharp follow-up rebound following previous selling pressure, highlighting significant demand at lower price levels.
Bhuva anticipates elevated volatility in upcoming sessions due to the impending Union Budget event. He identified the 20-day moving average and the 59,500 zone as crucial technical levels, with a sustained close above these points potentially determining the next directional movement. Support is positioned at 58,800, while resistance stands firm at 59,500.
India-EU Free Trade Agreement: Implications for Markets
The recently concluded India-EU Free Trade Agreement, finalized on January 27, 2026, is poised to significantly enhance India's export competitiveness in the medium term. This landmark agreement grants preferential tariff access to the EU market, covering over 99% of Indian exports by value, with zero or reduced duties on key labor-intensive sectors including:
- Textiles and apparel
- Footwear and leather products
- Fisheries and marine products
- Chemicals and pharmaceuticals
- Manufacturing and industrial goods
This comprehensive trade framework is expected to stimulate substantial growth in high-employment areas, facilitate better integration into global supply chains, and expand opportunities in services sectors including information technology, professional services, and financial services through reciprocal commitments and mobility provisions.
Import Implications and Sectoral Impact
On the import front, the agreement opens India's market ambitiously to European Union goods, with tariff elimination or reduction on approximately 96.6% of EU exports. This includes significant reductions on automobiles, machinery, chemicals, pharmaceuticals, and processed agricultural items. While this may increase competitive pressure on certain domestic sectors, it is anticipated to lower input costs for Indian manufacturers, improve operational efficiency, and support technological upgrades across industries.
Sectoral growth is projected to be strongest in export-oriented manufacturing, services, and green industries, while protective measures safeguard sensitive agricultural products including rice, sugar, and poultry.
Stock Market Implications of the Trade Deal
Pranay Aggarwal, Director and CEO of Stoxkart, elaborated on what the India-EU free trade agreement means for the Indian stock market. He emphasized that the reciprocal framework, business-friendly rules of origin, customs facilitation, intellectual property protections, support for small and medium enterprises, and predictable regulations—combined with the agreement's substantial scale covering approximately 2 billion people and 25% of global GDP—are expected to boost global investor confidence.
This landmark deal signals India's deepening rules-based integration, resilient supply chains, and strategic partnership with the European Union, potentially attracting higher foreign direct investment inflows, fostering innovation, and reinforcing economic openness amid geopolitical uncertainties. Greater clarity regarding specific benefits, sectoral details, and balanced impacts will emerge once the complete official documents are published by India's Ministry of Commerce and Industry.
Commodities Market: Gold and Silver Rates Analysis
Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, provided insights into silver and gold rates. COMEX silver prices experienced notable volatility, briefly spiking above $117 per ounce on Monday before retreating sharply to $102 per ounce, and currently trading around $108 per ounce. On the domestic front, MCX silver rates surged to a fresh all-time high of ₹3,64,821 per kilogram, tracking sharp movements in global markets.
Silver remains highly volatile, already registering a 50% gain in January following impressive gains of approximately 170% in 2025, supported by tight physical supplies as reflected in elevated Shanghai premiums over COMEX prices. Meanwhile, COMEX gold maintains firm positioning near record highs, trading above $5,125 per ounce after touching an all-time high of $5,145.39 per ounce on Tuesday.
Domestically, MCX gold rates achieved a fresh record of ₹1,59,820 per 10 grams, supported by a weaker US dollar, tariff-related risks, and uncertainty surrounding US Federal Reserve leadership, which continue to underpin safe-haven demand among investors.
Currency Markets: Indian Rupee Strengthens Against US Dollar
Jateen Trivedi, VP Research Analyst for Commodity and Currency at LKP Securities, analyzed the outlook for the Indian National Rupee against the US Dollar. The Indian Rupee traded stronger at 91.70, gaining approximately 0.16 paise, as optimism surrounding a potential trade understanding with Europe supported market sentiment.
Short covering during the second half of the capital market session further lifted expectations of steadier capital flows. With the Federal Reserve's policy decision scheduled for late Wednesday, the rupee is likely to closely track global cues. The near-term trading range is anticipated between 91.35 and 92.15.
Stocks to Buy Today: Expert Recommendations
Market experts including Sumeet Bagadia (Executive Director at Choice Broking), Ganesh Dongre (Senior Manager of Technical Research at Anand Rathi), and Shiju Koothupalakkal (Senior Manager of Technical Research at Prabhudas Lilladher) recommended eight intraday stocks for today's trading session:
- Axis Bank
- APL Apollo
- ICICI Bank
- NTPC
- Bharat Dynamics Ltd (BDL)
- Waaree Energies
- IRCON International
- MTAR Technologies
Detailed Stock Analysis and Recommendations
Sumeet Bagadia's Recommendations:
Axis Bank: Buy at ₹1,316, Target ₹1,408, Stop Loss ₹1,270. The stock maintains a strong upward trajectory with consistent formation of higher highs and higher lows, reflecting sustained bullish momentum. Recently reaching a 52-week high of ₹1,333.2, a breakout above this level could further accelerate buying interest. All exponential moving averages (20, 50, 100, and 200-day) trend upward, reinforcing the bullish outlook.
APL Apollo: Buy at ₹2,061, Target ₹2,203, Stop Loss ₹1,990. The stock exhibits a strong bullish trend with price action showing a clear shift from consolidation to sharp upward movement. After spending time in a sideways range, the stock has formed a rounding base and broken out upside, indicating steady accumulation followed by renewed buying interest.
Ganesh Dongre's Recommendations:
ICICI Bank: Buy at ₹1,360, Target ₹1,395, Stop Loss ₹1,345. The share price demonstrates a strong and consistent bullish pattern, indicating sustained investor interest and positive price momentum.
NTPC: Buy at ₹344, Target ₹360, Stop Loss ₹335. The stock exhibits a strong, notable, and continuous bullish pattern, offering promising opportunities for short-term traders. Currently trading at ₹344 with strong support at ₹335, the technical setup suggests potential price retracement toward the ₹360 level.
Bharat Dynamics Ltd (BDL): Buy at ₹1,469, Target ₹1,525, Stop Loss ₹1,430. The share price demonstrates a strong, notable, and continuous bullish pattern. Currently priced at ₹1,469 with strong support at ₹1,430, the technical setup suggests potential price retracement toward the ₹1,525 level.
Shiju Koothupalakkal's Recommendations:
Waaree Energies: Buy at ₹2,695, Target ₹2,820, Stop Loss ₹2,640. The stock recently witnessed decent correction with good consolidation near the ₹2,550 to ₹2,600 zone, now indicating revival with significant volume participation suggesting further rise in coming sessions. The RSI has bounced back from highly oversold zone to signal buy.
IRCON International: Buy at ₹154.90, Target ₹163, Stop Loss ₹151. After correcting recently from the ₹182 zone, the stock shows signs of stability near the ₹152 zone, with revival witnessed through significant volume participation in final trading hours, improving bias for upward movement.
MTAR Technologies: Buy at ₹2,528, Target ₹2,650, Stop Loss ₹2,470. The stock indicates series of higher bottom formations on daily chart, currently taking support near important 50-EMA level at ₹2,435 zone. With revival and positive candle formation, bias improves for anticipated rise.
Important Disclaimer and Key Takeaways
Disclaimer: This information is provided for educational purposes only. The views and recommendations expressed above belong to individual analysts or broking companies and do not represent Mint. Investors are strongly advised to consult certified experts before making any investment decisions.
Key Market Takeaways
- Nifty 50 and Sensex demonstrate bullish signs with clearly identified key support levels
- The India-EU Free Trade Agreement holds potential to significantly enhance India's export capabilities across multiple sectors
- Selected stocks including Axis Bank and ICICI Bank receive recommendations for potential buy opportunities based on technical analysis
- Commodities markets show remarkable strength with gold and silver reaching record levels
- Currency markets reflect optimism with Indian Rupee strengthening against US Dollar
