The Indian stock market closed with modest losses on Tuesday, reflecting mixed global market sentiments and the weekly futures and options expiry. While the Nifty 50 index managed to gain 57 points, closing at 25,732, the BSE Sensex dropped 250 points to finish at 83,627. In contrast, the Bank Nifty index ended 128 points higher at 59,578, showing relative strength.
Sectoral Performance and Market Breadth
Sectoral trends presented a mixed picture, keeping traders and investors engaged throughout the session. Information technology and metal stocks emerged as notable gainers, providing some support to the indices. However, real estate and pharmaceutical stocks faced selling pressure, closing in negative territory.
The mid-cap and small-cap segments witnessed selective participation. Small-cap stocks demonstrated modest resilience despite moderate overall market breadth. This selective movement suggests investors are carefully picking stocks rather than making broad-based bets.
Expert Analysis: Range-Bound Market Sentiment
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market is currently trading in a range-bound pattern. She notes that the Nifty 50 index is oscillating between 25,500 and 25,900. According to Parekh, a clear bullish or bearish trend will only emerge once the index breaks decisively above or below this range.
The Nifty 50 index faces crucial support at 25,500. If this level breaks, Parekh warns that the index could potentially test the 25,100 to 25,000 zone. On the upside, the index needs to breach the 25,900 level to establish conviction for further upward movement.
Detailed Technical Outlook for Nifty 50
"The Nifty 50 index fizzled out after a gap-up opening near the 25,900 zone," Parekh explained. "Profit booking dragged it down to an intraday low near 25,600 before some recovery in the final hours minimized losses."
She emphasized that the index remains precariously positioned. Major support lies near the 200-period moving average at the 25,000 zone. For sustained upward momentum, the index must decisively close above the 50-day exponential moving average at 25,900.
Bank Nifty Shows Relative Strength
Parekh observed that the Bank Nifty index experienced a range-bound session with some intraday volatility. It managed to close in positive territory near 59,600, maintaining a relatively stronger bias compared to the Nifty 50.
The banking index has sustained above its near-term support and 50-DEMA level at 58,900, keeping the overall bias positive. However, Parekh noted that a decisive close above 60,000 is necessary to trigger a fresh upward move in coming sessions.
Key Support and Resistance Levels
Parekh identified immediate support for the Nifty 50 at 25,600, with resistance at 25,900. For Bank Nifty, she expects a daily trading range between 59,200 and 60,000 in the near term.
Today's Stock Recommendations
For intraday trading opportunities, Vaishali Parekh recommended three stocks:
- Apollo Hospitals: Buy at ₹7,320 with a target of ₹7,500 and stop loss at ₹7,225. The stock is bouncing back from its support level, offering potential for short-term traders.
- Shriram Finance: Buy at ₹972 with a target of ₹1,000 and stop loss at ₹960. Technical charts suggest the stock is already in a bull trend and may witness another round of upward movement.
- Tech Mahindra: Buy at ₹1,610 with a target of ₹1,650 and stop loss at ₹1,590. The stock is forming a higher bottom pattern, signaling a potential uptrend in the near term.
Disclaimer: This information is for educational purposes only. The views and recommendations belong to individual analysts and not Mint. Investors should consult certified experts before making any investment decisions.
