The Indian equity markets concluded the trading week on a positive trajectory, with the benchmark Nifty 50 index putting an end to a four-session decline. The index closed decisively at 25,966, firmly reclaiming the psychologically significant 25,900 zone. This recovery was fueled by widespread buying activity across various sectors.
What Drove the Market Rebound?
The rally found support from two key factors. Firstly, the Indian rupee staged a sharp recovery from its record lows against the US Dollar. Secondly, foreign portfolio investors (FPIs) returned to the market as net buyers over the past two trading sessions. While robust domestic liquidity has consistently provided a cushion against steeper declines, the renewed interest from foreign funds is now seen as a potential trigger for the market's next upward move, enhancing the overall risk sentiment among investors.
Technical Outlook and Key Levels for Nifty
Sumeet Bagadia, Executive Director at Choice Broking, noted that market sentiment has improved after the Nifty 50 bounced back strongly from testing its 50-day exponential moving average (DEMA) support, which is placed at 25,750. The index is now sustaining above this level. However, it is encountering a resistance band between 26,000 and 26,050. A conclusive close above this hurdle would reinforce bullish confidence. Conversely, a break below the 25,750 support could weaken sentiment, potentially leading the index to test the next crucial support zone at 25,400 to 25,350.
Sumeet Bagadia's Stock Recommendations for Monday
For trading opportunities on Monday, Bagadia has recommended three stocks: Jio Financial Services, Bharat Electronics Ltd (BEL), and Asian Paints.
Jio Financial Services (JIOFIN): The analyst suggests a buy at the current level of ₹296.95, with a target price of ₹325 and a stop-loss set at ₹288. The stock is showing early signs of a bullish reversal, forming a Morning Star candlestick pattern and nearing a breakout from a falling trend line. A sustained close above the ₹300 mark could confirm the breakout and trigger upward momentum. The Relative Strength Index (RSI) is at 45.64 and rising.
Bharat Electronics Ltd (BEL): Bagadia recommends buying BEL at ₹392.85, targeting ₹430, with a stop-loss at ₹375. The stock has formed a base after a corrective phase and is showing signs of a bullish reversal, poised to break out from a consolidation range between ₹395 and ₹380. Trading above its 200-day EMA indicates a positive long-term trend. A decisive close above ₹400 could act as a key breakout signal.
Asian Paints: The recommendation is to buy at ₹2799, with a target of ₹3000 and a stop-loss at ₹2700. Following a strong impulsive rally, the stock is undergoing a controlled correction. It continues to trade above its major moving averages (50, 100, and 200-day EMAs), with strong support seen in the ₹2,700 to ₹2,720 zone. A move above ₹2,820 to ₹2,850 could reignite the uptrend.
Disclaimer: This article is for informational purposes only. The views and recommendations are those of the individual analyst and not of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions.
