Indian Stock Market Rebounds with IT and Banking Strength
The Indian stock market displayed early signs of recovery after a multi-session decline. Strong performances in select IT and banking stocks drove this rebound. Positive earnings surprises fueled the upward movement. This recovery highlighted the underlying resilience of domestic financials. Global uncertainties persisted, but the market absorbed them effectively.
Key Drivers of the Market Recovery
Heavyweight IT stocks led the recovery following upbeat quarterly updates. The market managed to absorb persistent concerns around U.S. tariff threats. These threats included potential secondary duties linked to trade with Russia and Iran. Tariff-related overhangs remained, but their impact stayed contained so far.
Continued domestic institutional inflows provided a stabilising cushion. They countered moderate foreign institutional investor outflows. Export-oriented sectors maintained a cautious stance. Resilient domestic consumption supported the broader economic outlook. Steady services growth and diversification in trade partners also contributed positively.
Broader Market Perspective and Outlook
The recent pullback represented a healthy correction within the larger uptrend. Key indices respected higher-timeframe supports. Improving earnings momentum limited downside risk. Sustained domestic institutional participation further reduced potential declines. Global headwinds and U.S. policy uncertainties may cap aggressive upside in the near term.
Expert Analysis: Sumeet Bagadia's Market View
Sumeet Bagadia, Executive Director at Choice Broking, shared his perspective. He believes the Indian stock market is sideways to positive. The Nifty 50 index is trading in a tight 25,500 to 25,900 range. A bullish or bearish trend can be assumed on the breakage of either side of this range.
Nifty 50 Index Technical Outlook
Bagadia explained the Nifty 50 index outlook in detail. The index currently trades below the 20, 50, and 100 EMA. This reflects weak short-term momentum. The 200 EMA near 25,940 remains a key overhead resistance. Recent candles show a mild recovery attempt. The structure still reflects lower highs, suggesting the move is corrective rather than trend-reversing.
Immediate resistance is placed at 25,800–25,850. A stronger supply zone exists near 25,900. On the downside, 25,500–25,550 remains an important support area. A breakdown below this could invite further pressure.
Bank Nifty Index Technical Outlook
Bagadia also discussed the Bank Nifty index outlook. The index has formed a short-term higher low structure. A steady recovery followed this formation. The index moved back above the 20- and 50-EMA. This suggests a return of short-term momentum.
The recovery from the recent swing low near 59,000 indicates active buyer defense. The price is still approaching a supply area near prior breakdown levels. This keeps the structure cautious. Immediate resistance is placed around 60,300–60,400. Selling pressure may re-emerge at this zone.
A decisive breakout and acceptance above this zone could open the door to further upside. On the downside, 59,700–59,800 acts as the first line of support. The 59,600–59,500 range remains a crucial breakdown level. A breach below this could negate the recovery attempt.
Stocks to Buy on Monday Under ₹100
Sumeet Bagadia recommended three buy-or-sell stocks under ₹100 for Monday trading. These stocks offer affordable entry points for investors.
- Yes Bank: Buy at ₹23.46, Target ₹25, Stop Loss ₹22.68
- Sagility: Buy at ₹53.41, Target ₹60, Stop Loss ₹50.53
- HFCL: Buy at ₹68.02, Target ₹76.10, Stop Loss ₹63.95
Important Disclaimer
This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Key Takeaways for Investors
- The Indian stock market is showing resilience despite global uncertainties.
- Sumeet Bagadia identifies key stocks under ₹100 for potential short-term gains.
- Understanding support and resistance levels is critical for effective trading strategies.
