Global financial markets have adopted a defensive stance at the start of today's session, influenced by a significant overnight decline on Wall Street. Major US indices, including the S&P 500, Nasdaq, and Dow Jones, extended their losses as investors opted to secure profits in highly-valued technology and artificial intelligence (AI) stocks. This shift in sentiment is driven by growing skepticism about returns on AI capital expenditure, reports of reduced funding for data-center projects, and a noticeable rotation of capital into safer, defensive sectors.
Indian Market Outlook and Key Levels
Investor caution is further heightened in anticipation of the upcoming US consumer price inflation data. The market remains divided on the future path of monetary policy, leading participants to maintain defensive portfolios and avoid aggressive bets. Asian markets opened weakly, echoing the subdued mood from Wall Street after several sessions of persistent selling. This negative pressure is expected to influence Indian equities at the opening bell.
However, analysts suggest the current selling phase is not driven by panic. Instead, it appears to be a valuation-based adjustment following a strong market rally, rather than signaling a fundamental breakdown in market structure.
Ponmudi R, CEO of Enrich Money, provided a technical perspective on the Nifty 50 index. He stated that the index continues to trade within a rising channel pattern. The zone between 25,800 and 25,700 is identified as a crucial near-term support and decision-making area. As long as this base holds, the broader upward trend remains valid despite current volatility and global weakness. He warned that intensified selling, particularly through long unwinding, could trigger a deeper correction toward the 25,500–25,400 range. On the upside, the 25,950–26,000 zone is seen as a supply area where rallies may face resistance until global sentiment improves.
Bank Nifty and Currency Market View
Regarding the Bank Nifty index, Ponmudi R noted it is in a consolidation phase after a strong upward move. 58,800 has emerged as a key support floor. Maintaining levels above this suggests a constructive structure and healthy digestion of recent gains. A sustained move above 59,000–59,100 would signal renewed strength and a continuation of the uptrend. Conversely, a decisive break below 58,800 could lead to further consolidation toward the 58,500–58,250 zone, likely driven by long unwinding.
On the currency front, Jateen Trivedi, VP Research Analyst at LKP Securities, commented on the Indian Rupee (INR). He observed that the rupee rebounded sharply from near 91.00 to around 90.35 against the US Dollar, likely aided by intervention, ending a multi-day losing streak. However, the sustainability of this recovery is uncertain pending clarity on the India-US trade deal and amid continued foreign institutional investor (FII) selling. He expects volatility to persist, with the rupee likely to trade in the 89.80–90.80 range.
Expert Stock Recommendations for Today
Market experts have recommended eight stocks for intraday trading today. The recommendations come from Sumeet Bagadia of Choice Broking, Ganesh Dongre of Anand Rathi, and Shiju Kuthupalakkal of Prabhudas Lilladher.
Sumeet Bagadia's Picks:
Shriram Finance: Buy at ₹864, target ₹924, stop loss ₹834. The stock shows a strong bullish trend, trading above key moving averages with an RSI of 64.45.
Canara Bank: Buy at ₹150, target ₹160, stop loss ₹145. The stock exhibits a bullish 'pole and flag' pattern, trading above all major EMAs with an RSI of 60.11.
Ganesh Dongre's Selections:
IndusInd Bank: Buy at ₹830, target ₹870, stop loss ₹810. The stock is near a key support level, presenting a buying opportunity.
Punjab National Bank (PNB): Buy at ₹119, target ₹125, stop loss ₹114. The stock shows reversal signs at ₹119 after finding support at ₹114.
Tech Mahindra: Buy at ₹1,580, target ₹1,625, stop loss ₹1,560. The stock displays a continuous bullish pattern with strong support at ₹1,560.
Shiju Kuthupalakkal's Intraday Calls:
Bank of Baroda: Buy at ₹287.60, target ₹305, stop loss ₹280. Positive candle formation with volume suggests further upside.
Suprajit Engineering: Buy at ₹469.50, target ₹495, stop loss ₹458. The stock has moved above its 200-period MA with improving RSI.
Jyothy Labs: Buy at ₹287.50, target ₹307, stop loss ₹281. A positive reversal is indicated after a correction, with RSI showing a buy signal from the oversold zone.
Disclaimer: This article is for educational purposes only. The views and recommendations are those of individual analysts and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
