Indian Stock Market Ends Flat After Volatile Session
The Indian stock market concluded a day of volatile trading on a largely flat note this Friday. The benchmark indices struggled for direction throughout the session, with the Sensex declining by 94.73 points, or 0.11%, to settle at 83,216.28. Meanwhile, the Nifty 50 slipped by 17.40 points, or 0.07%, closing just under the crucial 25,500 mark at 25,492.30.
What Drove the Market Sentiment?
Market analysts attributed this stable but subdued performance to a clash of opposing forces. Persistent selling activity from Foreign Institutional Investors (FIIs) created downward pressure. However, this was counterbalanced by cautious yet consistent support from Domestic Institutional Investors (DIIs), which helped prevent a steeper decline.
The lack of positive triggers from global markets further dampened the mood. Specifically, a noticeable weakening in technology and artificial intelligence stocks on US exchanges contributed to the cautious environment back home. Investors also engaged in profit-taking, particularly in the financials and real estate sectors, locking in gains from recent rallies. The metals sector, however, demonstrated resilience and provided some much-needed support to the broader indexes.
Expert Market Views and Trading Strategy
Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities, provided a technical perspective on the market's movement. He noted that the Nifty 50 continues to face profit-booking pressure, with its failure to hold above 25,500 signaling short-term weakness.
Nifty 50 Outlook: Tapse identified immediate support levels at 25,350 and 25,200. Resistance is positioned near 25,650. He warned that a close below 25,450 could trigger further selling, pushing the index toward its lower supports. However, he did not rule out a pullback towards 25,650 if short-covering emerges. His advice to traders is to remain cautious and avoid aggressive long positions until the index sustains above 25,650, which would confirm a positive reversal in sentiment.
Bank Nifty Outlook: The banking index remained volatile, struggling to build momentum above the 58,000 level. Immediate support lies at 57,500, with a break below potentially extending weakness towards the 57,200–57,000 range. The 58,000 zone is acting as a strong resistance, with sellers active at higher levels. Tapse stated that for the index to regain strength, a decisive close above the 58,000–58,200 band is necessary. Until then, traders should maintain a defensive approach, focusing on booking profits during intraday recoveries.
Stocks to Watch: Short-Term Buying Opportunities
Prashanth Tapse also recommended three stocks for short-term trading, providing specific entry points and targets.
Dr. Reddy’s Labs: With a current market price (CMP) of ₹1,205, the stock shows a positive bias. A stop-loss (SL) should be placed at ₹1,185, with targets at ₹1,250 and ₹1,265. A breakout above ₹1,220 could trigger fresh upside momentum.
Max Healthcare: Trading at a CMP of ₹1,135, this stock displays strength. Traders should set a stop-loss at ₹1,110 and aim for targets of ₹1,165 and ₹1,185. A sustained move above ₹1,140 could lead to a breakout.
Orkla India: This newly listed stock, with a CMP of ₹706.95, shows encouraging early strength. A stop-loss of ₹675 is advised, with ambitious targets at ₹825 and ₹850. A sustained move above ₹715 could trigger a fresh rally.
Le Travenues Technology (Ixigo): At a CMP of ₹280.40, Ixigo has stabilized after consolidation. A stop-loss of ₹265 is recommended, with targets at ₹300 and ₹310. Holding above ₹280 could reignite upward momentum.
Disclaimer: The views and recommendations above are from individual analysts and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
