Indian stock markets finally broke their five-day losing streak on Monday. Both the Sensex and Nifty 50 indices staged a remarkable recovery, bouncing back sharply from early losses. The turnaround came as investors hunted for bargains in an oversold market. Positive signals about progress in US-India trade talks also helped lift sentiment.
Market Rebounds Strongly
The trading session began with significant pressure. The benchmark 30-share Sensex plunged more than 700 points during the first half. It touched an intraday low of 82,861 points. However, the index staged a dramatic comeback in the latter part of the day.
Sensex closed at 83,878.17, gaining 302 points or 0.36%. This represented a stunning rebound of 1,017 points from the day's lowest point. The broader Nifty 50 index followed a similar pattern. It ended the session at 25,790.25, rising 107 points or 0.42%.
Expert Analysis on Market Outlook
Sumeet Bagadia, Executive Director at Choice Broking, provided detailed insights. He noted that Nifty 50 opened flat but extended its decline initially. The index then recovered sharply by nearly 330 points in the second half. This showed strong buying interest and resilience at lower levels.
"The index decisively broke above the 25,750 resistance level," Bagadia observed. "It closed at 25,790.25, reflecting modest improvement in near-term sentiment despite prevailing caution."
He identified immediate resistance in the 25,950–26,000 zone. Crucial support lies between 25,650 and 25,700. Derivatives data revealed heavy put writing at the 25,700 strike. Strong call writing appeared at the 26,000 strike, establishing a clear trading range.
"As long as Nifty holds above 25,600, a selective buy-on-dips strategy may be considered," Bagadia advised. "Traders should place strict stop-losses at 25,500 to manage downside risk effectively."
Bank Nifty Shows Similar Resilience
The Bank Nifty index mirrored the broader market's movement. It opened flat but witnessed a sharp bearish move of nearly 450 points. The index slipped to an intraday low of 58,864. Then it staged a strong rebound of approximately 676 points from those lower levels.
Bagadia pointed to aggressive buying interest and clear defence of key support zones. Immediate resistance sits between 59,800 and 59,900. The 59,200–59,300 support band remains critical for maintaining near-term stability.
"On daily charts, the RSI stands at 51.40 and is trending higher," he noted. "This suggests strengthening momentum and a gradual shift in favour of the bulls."
Despite short-term weakness, the market demonstrated underlying strength. Bagadia advised traders to maintain a bullish bias. They should adopt a buy-on-dips strategy near key support levels. Disciplined risk management and appropriate stop-loss placements remain essential.
Five Breakout Stocks to Consider Today
Breakout stocks move past their established support or resistance levels. Such breakouts often signal that a stock may be poised for strong price movement. Amid current market conditions, Sumeet Bagadia recommended five breakout shares to buy today.
1. Fedbank Financial Services
Buy at: ₹163.59
Target: ₹177
Stop loss: ₹157
FEDFINA shows a strong bullish trend. It currently trades near ₹163.6 after a sharp breakout above its prior consolidation zone. The stock holds firmly above all key EMAs, which are positively aligned. This indicates strong trend strength. Volumes have improved during the recent up move, supporting the breakout. As long as price sustains above ₹157, the trend remains intact. Potential upside could reach ₹177 in the near term.
2. Asian Paints
Buy at: ₹2,896
Target: ₹3,100
Stop loss: ₹2,800
ASIANPAINT displays renewed bullish momentum. It trades around ₹2,896 after reclaiming the ₹2,800 resistance zone. The stock sits comfortably above its 20, 50, and 100-day EMAs, signalling trend continuation. The recent higher-high and higher-low structure reflects strong buying interest. Sustaining above ₹2,800 keeps the bias positive. A continuation move could lead the stock toward the ₹3,100 zone.
3. Nestle India
Buy at: ₹1,312
Target: ₹1,400
Stop loss: ₹1,270
NESTLEIND maintains a positive trend. It trades near ₹1,312, consolidating after a steady recovery. The stock holds above its short- and medium-term EMAs, which slope upward. This indicates a bullish structure. Buying interest appears visible on minor dips, suggesting accumulation. As long as price holds above ₹1,270, the setup remains constructive. Potential upside could move toward the ₹1,400 level.
4. Alkem Laboratories
Buy at: ₹5,867
Target: ₹6,300
Stop loss: ₹5,656
ALKEM has resumed its uptrend. It trades around ₹5,867 after breaking out from a falling channel pattern. The stock trades above all major EMAs, with the 20-day EMA acting as immediate support. The breakout receives support from improving volumes, indicating strength. Holding above ₹5,656 keeps the bullish bias intact. A sustained move could open the path toward the ₹6,300 target zone.
5. Union Bank of India
Buy at: ₹164
Target: ₹177
Stop loss: ₹157
UNIONBANK shows a strong uptrend. It currently trades near ₹164 after a decisive breakout above recent resistance. The stock enjoys support from rising EMAs, reflecting sustained bullish momentum. Higher highs and higher lows indicate trend continuation. Volumes expand on up moves. As long as price stays above ₹157, the structure remains positive. The stock could advance toward the ₹177 level.
Disclaimer: This story serves educational purposes only. The views and recommendations above belong to individual analysts or broking companies, not Mint. We advise investors to consult certified experts before making any investment decisions.
