Indian Stock Market Closes Week with Modest Gains Amid Volatility
The Indian stock market wrapped up the trading week with modest gains. Investor sentiment swung between optimism and caution throughout the week. Renewed trade talks between India and the United States provided some positive momentum. However, ongoing geopolitical uncertainties kept a lid on aggressive buying.
The benchmark indices started the week on a strong footing. They managed to hold early gains for some time. However, selling pressure emerged in select heavyweight stocks across various sectors as the day progressed. This gradual selling dented the market's momentum.
Nifty 50 and Sectoral Performance
The Nifty 50 index ultimately closed at 25,694.35. This represented a gain of 0.11 percent for the week. Early optimism received a significant boost from a sharp rally in IT stocks. Infosys led this charge after the company upgraded its full-year revenue outlook. This positive development lifted the broader IT index.
Financial stocks and realty stocks also contributed to the gains. They provided support to the indices. On the other hand, pharma stocks and energy stocks lagged behind. They underperformed during the week. In the broader market, midcap and smallcap indices finished mostly flat. Some even ended marginally lower, aligning with the prevailing cautious trend.
Expert Analysis on Market Outlook
Mehul Kothari, Deputy Vice President of Technical Research at Anand Rathi, shared his insights. He noted it was a truncated trading week marked by significant volatility. The Nifty largely consolidated within a narrow range throughout the period.
Kothari stated that overall market sentiment remained range-bound. Cautious global cues and the ongoing third-quarter earnings season influenced investor behavior. Investors adopted a selective, stock-specific approach. They avoided aggressive positioning in the market.
Nifty 50 Technical View: The index initially slipped below the 25,500 mark, reflecting early pressure. However, it managed a recovery from those lower levels. The upside movement remained capped. Nifty failed to decisively clear the 25,900 resistance zone. It eventually closed the week with only a modest change.
"The Nifty remained in consolidation after last week's failed breakout and sharp reversal," Kothari explained. "The index held above the 25,400 support level, which we highlighted as the maximum near-term downside. Importantly, this level was not breached. That reinforces its significance as a strong demand zone."
He added that the index is currently stuck in a well-defined range of 25,400 to 25,900. This reflects market indecision and a lack of follow-through on either side. A decisive breakout above 25,900 could open the door for a fresh upside move. Conversely, a breakdown below 25,400 would signal renewed weakness. That would set the tone for the next leg of the trend.
Volatility remains a key variable. The India VIX rebounded to around 11 from recent lows near 9. This indicates that complacency is fading. Sharp moves cannot be ruled out in either direction. Given this setup, Kothari advises a cautious and selective approach. Traders should wait for clear confirmation before taking aggressive directional positions.
Bank Nifty Technical View: Bank Nifty witnessed a dip towards the 59,000 support level. This support was protected on a closing basis. It was followed by a decent recovery towards the 60,000 mark.
"The upside remains capped as the index now faces an immediate hurdle near 60,500," Kothari noted. "A sustained move above this level could trigger a short-term pullback. However, the broader resistance zone of 61,000 to 61,500 is expected to attract selling pressure. This zone aligns with the long-term rising trendline."
On the downside, 59,000 continues to be a crucial support level. A decisive breakdown below this level could open the door for a move towards 58,000 or lower. Overall, the index remains in a cautious zone. Price action near these key levels will likely dictate the next directional move.
Stocks to Consider for Next Week
Regarding potential stock picks for the coming week, Mehul Kothari recommended three shares. All three are currently trading under ₹200 per share. He provided specific entry points, targets, and stop-loss levels for each.
- Bank of India: Consider buying at ₹157. The target price is ₹165. Maintain a stop loss at ₹153.
- Samvardhana Motherson International: Consider buying at ₹114. The target price is ₹122. Maintain a stop loss at ₹110.
- Indian Oil Corporation: Consider buying at ₹161. The target price is ₹170. Maintain a stop loss at ₹156.
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 with certified experts before making any investment decisions.
