The Indian stock market exhibited a balanced performance on Tuesday, caught between robust domestic fundamentals and external uncertainties. Strong local liquidity, steady consumption, and expectations of policy continuity bolstered sentiment, especially in banking and select large-cap stocks. However, cautious global cues and currency pressures kept aggressive buying in check.
Market Indices Show Resilience Amid Consolidation
Following a sharp fall on Monday, the benchmark indices managed to recover most of their intraday losses. Fresh buying at lower levels and short covering in sectors like banking, auto, and metals, post the expiry of monthly derivatives contracts, helped the Nifty 50 close largely flat. The index is currently in a mild corrective phase, forming a pattern of lower highs and lows on the daily chart.
Ponmudi R, CEO of Enrich Money, provided a technical perspective. He noted that the key demand zone for Nifty is at 25,800–25,900, supported by the 50-day EMA and a rising trendline. Tuesday's session formed a neutral doji candlestick at this trendline, indicating indecision but also potential stabilisation. He stated that as long as this support holds, the near-term bias is neutral, with a possible rebound towards 26,050–26,100. A decisive close above 26,150–26,200 is needed to revive bullish momentum.
Commodities and Currency See Sharp Moves
In the commodities space, gold and silver prices staged a strong recovery on Tuesday after a significant drop a day earlier. However, the rally was short-lived. Early Wednesday trade saw renewed pressure, with COMEX gold trading lower at $4,381.45 per ounce. COMEX silver fell more sharply, trading around $75 per ounce, down over 3% from Tuesday's close.
Anuj Gupta, Director of Ya Wealth, warned that the crash in COMEX silver could lead to a gap-down opening for MCX silver rates, with potential for further losses. On gold, Jateen Trivedi, VP Research at LKP Securities, noted that while MCX gold recovered by around ₹1,200 to near ₹1,36,100, profit booking at higher levels is capping gains. He expects gold to remain volatile in a new range of ₹1,32,000 to ₹1,38,500.
The Indian Rupee strengthened by 37 paise to 89.70 against the US dollar, aided by buying in financial stocks and the pullback in precious metals. Trivedi added that the rupee is likely to trade between 89.70 and 90.40 in the near term, with the India-US trade deal uncertainty being a key macro overhang.
Expert Stock Recommendations for Intraday Trading
Market experts have identified several trading opportunities for Wednesday. Here are eight intraday stock picks from leading analysts:
Sumeet Bagadia of Choice Broking recommends:
- Ashok Leyland: Buy at ₹179, target ₹191, stop loss ₹173.
- UPL: Buy at ₹787, target ₹840, stop loss ₹760.
Ganesh Dongre of Anand Rathi recommends:
- Shriram Finance: Buy at ₹980, target ₹1015, stop loss ₹960.
- SAIL: Buy at ₹140, target ₹149, stop loss ₹134.
- Astral: Buy at ₹1360, target ₹1410, stop loss ₹1340.
Shiju Kuthupalakkal of Prabhudas Lilladher recommends:
- Dredging Corporation of India: Buy at ₹1005, target ₹1050, stop loss ₹980.
- Paradeep Phosphates: Buy at ₹165, target ₹175, stop loss ₹161.
- Mahindra & Mahindra: Buy at ₹3660, target ₹3785, stop loss ₹3600.
Disclaimer: This story is for educational purposes only. The views and recommendations are those of individual analysts. Investors are advised to consult certified experts before making any investment decisions.
