The Nifty 50 index closed down 36.65 points at 22,082.65 (-0.17%), while the Bank Nifty index edged up by 130.90 points to 48,245.20 (+0.27%).
Sectoral performance was mixed. Auto (-1.31%), Consumption (-0.53%), and FMCG (-0.52%) faced notable selling pressure, while PSU Banks (+1.56%), PSE (+1.45%), and Energy (+0.76%) showed resilience. The lack of sustained buying suggests potential downside risks ahead, with investors closely watching for any breakout from the current consolidation phase.
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Overall, the market remained firmly in the grip of the bears, as selling pressure outweighed isolated gains.
BPCL (+3.10%), SBI (+2.98%), and Bharat Electronics (+2.84%) saw strong buying interest but failed to lift overall sentiment. On the downside, Bajaj Auto (-4.62%), Hero MotoCorp (-3.19%), and Bajaj Finserv (-2.62%) were the biggest drags, further weighing on the index.
With persistent selling pressure and weak buying interest, the market remains vulnerable to further downside, keeping sentiment firmly bearish.
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Outlook for India’s stock market
Nifty’s maximum open interest (OI) at 22,000 at put side (PE) suggests a strong support zone at this level, while the 22,500 call side (CE) holds significant OI, indicating potential resistance.
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If Nifty sustains above 22,000, a bullish continuation toward 22,500 is likely.
A breakdown below 22,000, however, could trigger further downside toward 21,800.
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Meanwhile, Bank Nifty has formed a double bottom, signaling a potential reversal. HDFC Bank and other private banks are also showing bullish momentum, which could contribute to a broader market pullback in the coming days.
Key Takeaways:
Short covering could drive a strong upward move.
Bank Nifty’s recovery and private banks’ strength may further support a short-term rally.
Three stocks to buy: Recommended by Ankush Bajaj
Force Motors: Buy at ₹7,154 | Target ₹7,650-7,720 | Stop loss ₹6,800
On the hourly chart, the stock has given a breakout from the ₹7,080 level. As long as it sustains above this level, bullish momentum is likely to continue. Additionally, the stock has successfully retested the breakout level, further strengthening the bullish outlook.
Traders can consider long positions while it remains above ₹7080, with a stop-loss below the breakout level to manage risk effectively.
InterGlobe Aviation Ltd: Buy at ₹4,598.70 | Target ₹4,720-4,750 | Stop loss ₹4,528
The hourly chart technical analysis for InterGlobe Aviation indicates a bullish trend, with key indicators like Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and moving averages signaling upward momentum.
At the current level, the stock is expected to bounce back to its zone of 660, and if it sustains above this level, we could see an upside move toward 700 levels.
Cholamandalam Investment and Fin Co Ltd: Buy at ₹1,449.60 | Target ₹1,520-1,550 | Stop loss ₹ 1,422
After forming a double bottom around the ₹1,170 level, the stock has rallied to ₹1,447. On the hourly chart, both RSI and MACD indicate bullish momentum. Additionally, the support zone is near ₹1,550.
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Taking a long position in this stock with an immediate stop-loss at the recent low could be a well-structured trade setup. However, it is advisable to confirm with volume and price action before execution.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
