Indian Stock Market Opens Higher on India-US Trade Deal Framework
The Indian stock market commenced trading on a cautiously optimistic note this Monday, with benchmark indices opening higher following the announcement of an interim framework for the India–US trade deal. Supportive cues from broader Asian markets further bolstered the positive momentum throughout the session, contributing to a steady upward trajectory.
Selective Participation Amid Global and Domestic Cues
Despite the early uptick, market participation remained selective as investors adopted a restrained approach, refraining from aggressive positioning ahead of key global and domestic macroeconomic indicators. This cautious sentiment reflects the ongoing assessment of broader economic developments and their potential impact on market dynamics.
Sectoral Performance Highlights
Sectoral action was predominantly positive, with notable buying interest observed in several key segments. PSU banks, consumer durables, realty, defence, pharmaceutical, and automobile stocks all demonstrated strength, driving the market's upward movement. In contrast, IT stocks exhibited mixed trends as investors continue to evaluate global technology sector developments and their implications for the industry.
Overall, the market appears to be entering a phase of gradual recovery and consolidation. The near-term direction is likely to be influenced by global macroeconomic developments, currency movements, and the sustainability of risk-on sentiment as reflected in foreign fund flows.
Expert Analysis and Market Outlook
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, maintains a positive outlook on Indian stock market sentiment. She believes that an optimistic approach could propel the Nifty 50 index toward its peak zone of 26,350. However, the expert noted that the Nifty 50 is currently facing a resistance hurdle in the 25,800-25,850 range.
Speaking on the Nifty 50's outlook, Parekh elaborated, "The Nifty 50 index witnessed a gap-up opening near the 25,900 zone and remained rangebound with a strong bias. Active participation from broader markets supported the benchmark index, and we anticipate further rises in the coming days. The index has near-term support near the 100-period moving average at the 25,500 zone. On the upside, with overall bias and trend maintained optimistically, it can retest the previous peak zone near 26,350 levels in the coming days."
Bank Nifty Performance and Projections
Regarding the Bank Nifty, Parekh stated, "The Bank Nifty index opened strongly near the 60,800 zone, with State Bank of India leading and PSU banks showing active participation to improve overall sentiment. We expect further gains in the coming days. On the downside, the index has important near-term support at the 59,500 zone, which must be sustained. On the upside, it can retest the recent peak zone near 61,800 levels, with most frontline banking stocks poised for additional gains."
Parekh identified immediate support for the Nifty 50 index at 25,700, with resistance at 26,100. For the Bank Nifty, she projected a daily range of 60,000 to 61,400.
Stock Recommendations for Intraday Trading
Vaishali Parekh provided three stock recommendations for intraday trading, focusing on buy opportunities with specific targets and stop-loss levels:
- PI Industries: Buy at ₹3,214, Target ₹3,500, Stop Loss ₹3,100.
- Samvardhana Motherson: Buy at ₹122, Target ₹128, Stop Loss ₹120.
- Cipla: Buy at ₹1,348, Target ₹1,365, Stop Loss ₹1,335.
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 consult certified experts before making any investment decisions.
