Indian Stock Market Stages Early Recovery
The Indian stock market displayed early signs of recovery after multiple sessions of decline. This rebound emerged primarily due to strong performances in select IT and banking stocks. Positive earnings surprises from these sectors fueled the upward movement.
Drivers Behind the Market Rebound
Heavyweight IT stocks led the charge with upbeat quarterly updates. Their strength helped the market absorb persistent global concerns. These concerns include ongoing U.S. tariff threats, which involve potential secondary duties linked to trade with Russia and Iran.
While tariff-related worries remain, their impact has been contained so far. Continued inflows from domestic institutional investors (DIIs) have provided a stabilizing cushion. This support counterbalanced moderate outflows from foreign institutional investors (FIIs).
Export-oriented sectors maintain a cautious stance. However, resilient domestic consumption, steady services growth, and diversification in trade partners continue to support the broader economic outlook.
Technical Perspective and Market Outlook
From a broader perspective, the recent pullback appears as a healthy correction within a larger uptrend. Key indices are respecting higher-timeframe support levels. Improving earnings momentum and sustained DII participation continue to limit downside risk.
Global headwinds and U.S. policy uncertainties may cap aggressive upside in the near term. Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, believes market sentiment has improved.
"The constructive undertone could extend to the Nifty 50 and broader midcap space in the upcoming week," Dongre said. "This is especially true with the Put-Call Ratio (PCR) at a supportive level of 0.75. As a result, a recovery toward the psychologically important 26,000–26,300 zone cannot be ruled out."
He noted immediate resistance for Nifty lies in the 26,300–26,500 zone. Supply pressure is likely to cap near-term gains there.
Derivatives Data and Bank Nifty Analysis
Derivatives data reinforces a range-bound yet constructive outlook. The highest Call open interest concentrates between the 26,000 and 26,500 strikes. This indicates strong resistance in that band.
Substantial Put open interest sits at the 25,500–25,700 strikes. It highlights a well-defined support base. Any corrective move toward this support zone will likely attract buying interest. This favors selective, stock-specific accumulation rather than signaling a broader trend reversal.
Regarding Bank Nifty, Dongre stated it has already witnessed short covering. It managed to close the week above the key 60,000 mark.
"For the upcoming week, immediate resistance is placed near 60,500," he explained. "Derivatives positioning shows the highest Call open interest at 61,000. The highest Put open interest is at 59,500, followed by 60,000."
Technically, Bank Nifty remains well supported above the crucial 58,500–59,000 band. This keeps the broader banking structure intact. Resistance is seen in the 60,500–61,000 zone, with a stronger hurdle near 61,000.
Stocks to Consider on Monday
Ganesh Dongre of Anand Rathi recommended three stocks for consideration on Monday. He provided specific buy ranges, targets, and stop-loss levels.
- Wockhardt: Buy in the ₹1430 to ₹1440 range. Target is ₹1510. Stop Loss is ₹1385.
- LT (Larsen & Toubro): Buy between ₹3850 and ₹3865. Target is ₹4050. Stop Loss is ₹3800.
- HDFC Bank: Buy in the ₹930 to ₹950 range. Target is ₹970. Stop Loss is ₹910.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies. We advise investors to consult certified experts before making any investment decisions.
