The Indian stock market is poised for a positive opening on Monday, mirroring strong gains in Asian markets. This bullish sentiment follows a robust start to the new year, influenced by global geopolitical events including the US action in Venezuela over the weekend.
Market Soars to New Peaks
On Friday, January 2, Indian equity benchmarks closed at historic highs, fueled by widespread buying across sectors. Optimism ahead of the third-quarter earnings season provided a significant boost to investor sentiment.
The Sensex jumped 573 points, or 0.67%, to settle at 85,762.01. The Nifty 50 index soared to an intraday all-time high of 26,340 before closing at a record 26,328.55, gaining 182 points or 0.70%. The broader market also participated in the rally, with the BSE Midcap index rising 0.97% and the Smallcap index advancing 0.79%.
Expert Technical Outlook: Nifty and Bank Nifty
Nifty 50 Analysis
Sumeet Bagadia, Executive Director at Choice Broking, provided a technical perspective. He noted that the Nifty 50 opened strong and maintained its upward momentum throughout the session, confirming underlying bullish strength.
"The index briefly surpassed the major resistance at 26,200 and confirmed a breakout above the earlier all-time high of 26,325, closing at 26,328," Bagadia stated. This reinforces the continuation of the bullish trend. He identified immediate resistance in the 26,450–26,500 zone, with key support placed at 26,150–26,200.
The daily Relative Strength Index (RSI) stands at 62.39 and is trending higher, indicating strengthening momentum. Market volatility remained low, with India VIX rising marginally by 2.89% to 9.45. Derivatives data points to heavy call writing and strong put accumulation at the 26,200 strike, establishing it as a crucial level.
Bagadia's strategy advises a selective buy-on-dips approach as long as the index holds above 26,200, with strict stop-losses placed at 26,150.
Bank Nifty Analysis
The Bank Nifty also witnessed a powerful rally on Friday, registering a fresh all-time high at 60,203. This reflects strong buying interest and positive sentiment across banking stocks.
According to Bagadia, this price action suggests intraday additions are being supported by strong institutional participation. Immediate resistance is seen in the 60,400–60,500 zone, while the 59,800–59,900 support band is critical for near-term stability.
The daily RSI for Bank Nifty is at 67.55 and continues to trend higher, signaling strong bullish momentum. Traders are advised to maintain a bullish bias and adopt a buy-on-dips strategy near key support levels, with disciplined risk management through appropriate stop-loss placements.
5 Breakout Stocks to Consider Today
Breakout stocks, which move past established support or resistance levels, often signal the potential for a strong price move. Amid the current market conditions, Sumeet Bagadia has recommended five breakout shares for traders.
1. Jbm Auto
Consider buying at ₹666.60. The stock is recovering after a corrective phase and is trading above its key Exponential Moving Averages (EMAs). The target price is ₹720, with a stop loss at ₹634.
2. Anant Raj
Consider buying at ₹584.05. The stock has formed a bottom and witnessed a sideways range upside breakout, indicating renewed strength. The target is ₹640, with a stop loss at ₹554.
3. CESC
Consider buying at ₹175.37. The stock consolidated before a sharp upside breakout after finding trendline support. It is trading firmly above its key EMAs. The target is ₹192, with a stop loss at ₹167.
4. Elecon Engineering Company
Consider buying at ₹501. The stock shows strength after solid support in the 480–485 zone and has given a four-day sideways range breakout. The RSI at 56.03 signals improving momentum. The target is ₹550, with a stop loss at ₹478.
5. UNO Minda
Consider buying at ₹1,321.20. The stock shows strength after an upside trendline resistance breakout and is forming higher highs on weekly charts. Trading above all key EMAs, its RSI at 61.73 reflects healthy bullish momentum. The target is ₹1,450, with a stop loss at ₹1,265.
Disclaimer: This analysis is for educational purposes only. The views and recommendations are those of the individual analyst. Investors are strongly advised to consult certified experts before making any investment decisions.
