Indian equity benchmarks ended Monday's volatile session with marginal losses, pausing after a strong opening driven by positive economic data. The Sensex declined by 64 points to close at 85,642, while the Nifty 50 fell by 27 points to settle at 26,176.
Markets Consolidate After Strong GDP-Led Opening
The trading day began on a positive note following the release of robust Q2 GDP figures, which highlighted strong domestic demand, particularly in sectors like automotive. However, the initial upward momentum faded as investors chose to book profits near record-high levels, leading to a subdued close.
Market analysts attribute the indecisive movement to investor caution ahead of a key event. All eyes are now on the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting scheduled for December 3-5. There is a widespread expectation in the market of a 25 basis points rate cut to 5.25%, prompted by easing inflation trends.
Analysts Warn of Volatility Ahead of RBI Decision
According to Abhinav Tiwari, Research Analyst at Bonanza Portfolio, the market is likely to remain cautious and range-bound until there is clarity from the central bank. "Until there is more clarity on the RBI's position regarding interest rates and liquidity, volatility may persist," Tiwari stated. He specifically pointed out that sectors like banking, real estate, and automotive could see heightened volatility as they are more sensitive to interest rate shifts.
Providing a technical perspective, Vatsal Bhuva of LKP Securities noted that the Nifty 50 formed a bearish candlestick pattern, marking its third consecutive day of weak performance. This indicates ongoing consolidation at elevated levels with selling pressure. "Call writing observed at 26,200 and 26,300 implies that the index might experience sideways movement in the short term with a slight bearish sentiment," Bhuva explained. He identified immediate support at 26,100 and resistance at 26,300, with positional support at the 26,000 level.
8 Intraday Stock Picks from Market Experts for Tuesday
Despite the cautious outlook, market experts have identified potential trading opportunities for Tuesday. Analysts from Choice Broking, Anand Rathi, and Prabhudas Lilladher have recommended eight stocks for intraday trading.
Sumeet Bagadia's Picks (Choice Broking):
City Union Bank Ltd: Buy at ₹283, target ₹303, stop-loss ₹273. Bagadia notes the stock is in a strong uptrend after hitting a fresh all-time high.
One 97 Communications Ltd (Paytm): Buy at ₹1,368, target ₹1,465, stop-loss ₹1,320. The stock shows sustained bullish momentum and is near a 52-week high.
Ganesh Dongre's Picks (Anand Rathi):
Gail (India) Ltd: Buy at ₹175, target ₹183, stop-loss ₹170. The stock shows a bullish reversal from a strong support base.
CG Power and Industrial Solutions Ltd: Buy at ₹670, target ₹690, stop-loss ₹655. Exhibiting a strong bullish pattern with support at ₹655.
Power Grid Corporation of India Ltd: Buy at ₹270, target ₹288, stop-loss ₹260. Shows a notable bullish pattern with support at ₹260.
Shiju Koothupalakkal's Picks (Prabhudas Lilladher):
Indian Bank: Buy at ₹887, target ₹935, stop-loss ₹865. The stock has regained strength after a short breather, with positive RSI signals.
Mangalore Refinery and Petrochemicals Ltd (MRPL): Buy at ₹161.95, target ₹172, stop-loss ₹158. Shows a higher bottom formation pattern on the daily chart.
Natco Pharma Ltd: Buy at ₹903, target ₹950, stop-loss ₹880. Witnessing a significant pullback with improving bias and strong volume.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
