Indian Stock Market Navigates Cautious Terrain Post-RBI Decision
The Indian stock market exhibited a cautious, range-bound bias on Friday as investors digested the central bank's decision to maintain interest rates unchanged. This move reinforced the Reserve Bank of India's preference for stability amidst improving global trade visibility following recent U.S. tariff adjustments. Market sentiment, however, found support from regulatory clarity after the RBI indicated that banks would be permitted to lend to Real Estate Investment Trusts (REITs), enhancing long-term funding visibility for the real estate and credit ecosystem.
On the domestic front, additional support emerged from a slight recovery in the Indian rupee, aided by moderated corporate dollar demand, which helped alleviate near-term currency concerns. This combination of factors created a mixed but resilient trading environment, setting the stage for expert analysis on future market direction.
Nifty 50 Index: Bullish Undertone with Key Resistance Levels
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market undertone is slightly bullish, as the Nifty 50 index bounced back strongly from a weak opening and closed above 25,650. The Choice Broking expert highlighted that the key benchmark index is now facing a significant hurdle at the 25,800-25,850 band. A decisive breakout above this resistance zone could potentially trigger a fresh bull trend on Dalal Street.
Elaborating on the Nifty 50 outlook, Bagadia stated, "The Nifty 50 began the session on a weak note and remained under selling pressure in the first half, marking an intraday low at 25,491.90. However, a robust rebound in the latter half led to a recovery of nearly 210 points from the day's low, and the index ultimately settled at 25,693.70, reflecting strong buying interest at lower levels." He identified near-term resistance in the 25,800–25,850 band, while immediate support is positioned in the 25,550–25,600 zone.
The daily Relative Strength Index (RSI) at 52.72 indicates neutral momentum with a slight bullish undertone. In the derivatives segment, significant put writing is visible at the 25,500 strike, while substantial call writing is observed at the 25,800 and 26,000 strikes, defining a clear short-term consolidation range. Bagadia advised that as long as the index maintains a closing above 25,500, a selective buy-on-decline approach can be adopted, with a strict stop-loss at 25,450.
Bank Nifty Index: Constructive Trend with Key Psychological Levels
Regarding the Bank Nifty index outlook, Bagadia noted, "The Bank Nifty index continues to respect the key psychological level of 60,000, which remains an important sentiment indicator. From a structural perspective, the 59,600–59,700 zone now acts as a strong demand and support area, supported by the confluence of the short-term 20-day Exponential Moving Average (EMA). Sustained holding above this zone suggests that dip buying interest remains active and the short-term trend structure stays constructive."
On the upside, Bank Nifty is facing an immediate resistance zone around 60,300–60,400, where supply pressure may emerge. A clean breakout and sustained acceptance above this zone would further strengthen the bullish structure and open the path for a move toward the higher resistance band near 60,500–61,000. Sumeet Bagadia of Choice Broking emphasized that the Bank Nifty maintains a positive bias with range-bound to bullish undertones. Trend continuation will depend on its ability to defend key support levels and absorb supply near overhead resistance zones.
Three Stocks to Buy: Expert Recommendations
Regarding stocks to consider for Monday's trading session, Sumeet Bagadia recommended buying these three stocks: Bharti Airtel, Hindustan Unilever Limited (HUL), and Titan Company.
- Bharti Airtel: Buy at ₹2,038, Target ₹2,180, Stop Loss ₹1,970. Bharti Airtel's share price is showing a clear short-term trend reversal after a corrective phase from recent highs. The stock has formed a strong base near the 200 EMA and bounced decisively, highlighting fresh buying interest and the emergence of demand at lower levels.
- Hindustan Unilever Limited (HUL): Buy at ₹2,424, Target ₹2,600, Stop Loss ₹2,330. HUL share price is showing early signs of a trend reversal after a prolonged downtrend and consolidation phase. The stock has formed a base and printed a strong bullish engulfing candle from lower levels, highlighting renewed buying interest and the emergence of demand near the 2,350 support zone.
- Titan Company: Buy at ₹4,141, Target ₹4,440, Stop Loss ₹4,000. Titan's share price continues to maintain a strong primary uptrend structure despite a recent corrective pullback. The stock has respected the rising 50- and 100-EMA zones and bounced sharply, indicating trend continuation rather than distribution.
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.
