Indian equity markets are set to begin today’s trade on a firm footing, tracking positive signals from GIFT Nifty and a mild improvement in global sentiment. However, after yesterday’s sharp rebound from lower levels, markets may struggle to build strong follow-through buying. The broader trend suggests a positive opening followed by range-bound trade, with stock-specific action and intraday volatility likely to dominate.
Investor confidence improved in the previous session after favourable comments on trade negotiations by the US ambassador, ahead of the next round of talks. This helped markets recover sharply from intraday lows. While buying interest has returned near support levels, technical indicators suggest that immediate upside could remain limited.
Indian equities closed higher on Monday, snapping intraday weakness. The Sensex rose 301.93 points, or 0.36 percent, to settle at 83,878.17. The Nifty 50 gained 106.95 points, or 0.42 percent, to close at 25,790.25.
The Nifty opened lower at 25,669.10 and slipped further to an intraday low of 25,473.40 during early trade. Strong buying at lower levels triggered a sharp recovery, with the index touching a high of 25,813.20 before ending the session near the day’s highs.
Sectoral performance was mixed. Metal, PSU Bank, FMCG and Financial Services stocks led the gains, while Media, Realty, Pharma and Auto stocks ended in the red.
From a technical standpoint, momentum indicators continue to reflect a negative bias, with the index trading below key short-term moving averages. However, the formation of a white candle with a long lower shadow signals strong buying interest near support levels.
Immediate support for the Nifty lies around 25,750. As long as the index holds above this zone, the recovery attempt could continue. On the upside, 25,815 remains the key intraday resistance to watch.
Intraday support: 25,715 – 25,600 – 25,475
Intraday resistance: 25,815 – 25,940 – 26,050
Positional support: 25,750 – 25,450
Positional resistance: 26,350 – 26,800
The Bank Nifty ended moderately higher, gaining 198.95 points, or 0.34 percent, to close at 59,450.50, indicating a cautious positive bias in banking stocks.
While momentum indicators and short-term averages still point to weakness, the formation of a white candle and a close above the previous session’s level suggest the start of a pullback rally. Immediate support is seen at 59,350, while resistance is placed near 59,600. A decisive move above this level could extend the recovery.
Intraday support: 59,350 – 59,130 – 58,850
Intraday resistance: 59,600 – 59,830 – 60,050
Positional support: 58,580 – 57,350
Positional resistance: 60,000 – 61,250
Institutional flows remained mixed. Foreign institutional investors were net sellers to the tune of ₹3,638.40 crore, while domestic institutional investors offered strong support, buying shares worth ₹5,839.32 crore.
As of 7:15 am, GIFT Nifty was trading at 25,911, up 52.50 points, signalling a positive opening for domestic markets.
US markets closed higher overnight. The Dow Jones Industrial Average gained 86.13 points to end at 49,590.20, while the Nasdaq Composite rose 62.56 points to close at 23,733.90.
European markets ended mixed, with the FTSE 100 and DAX posting modest gains, while the CAC 40 finished lower.
Asian markets opened on a mixed note. Japan’s Nikkei 225 slipped 532.50 points to trade near 53,640, while Hong Kong’s Hang Seng Index gained 84 points to hover around 27,088.50.
Crude oil traded lower near $64.07 in early trade. Gold was weaker around $4,588, while silver edged down to about $83.75.
The dollar index was mildly stronger at around 98.95. The rupee was trading near 90.13 against the dollar in early trade.
Prepared by: Research Desk, MyEquityLab.com, SEBI registered research analyst Registration No: INH000023843
