The stock market experienced a positive turnaround on Monday, with prominent indices like Sensex and Nifty 50 gaining traction. Fuelled by a robust rally in global markets and heightened investments in the banking sector, these benchmarks climbed by nearly half a percent. The Sensex soared by 341.04 points, concluding at 74,169.95, effectively ending a five-day streak of declines. During intraday trading, it even peaked at 74,376.35, reflecting a 547.44-point or 0.74 percent upswing. Meanwhile, the Nifty 50 added 111.55 points, closing at 22,508.75.

Market Insights and Expert Opinions

Vinod Nair, the Head of Research at Geojit Financial Services, commented on the favorable trading climate, attributing it to strong activity in both the healthcare and financial sectors. However, he cautioned that local investors remain hesitant due to tariff-related uncertainties, which could lead to fluctuating market trends in the short term.

• Key Points:
  • Sensex: Up 341.04 points (0.46%)
  • Nifty 50: Up 111.55 points (0.50%)
  • Strong performance in healthcare and finance sectors
  • Local investor engagement remains low due to tariff concerns

Nair emphasized that future upward momentum will depend on indicators of earnings growth. Encouraging domestic economic data hints at a potential recovery, but investors are closely monitoring upcoming meetings of the Federal Reserve (FED) and Bank of Japan (BOJ), expecting a continuation of current policies amidst inflation worries.

Market Performance Breakdown

After a sluggish start, the Nifty 50 rallied throughout the day, closing 0.5% higher. The market breadth was favorable, with 33 out of 50 stocks finishing in the green. The standout performers included:

• SBI Life Insurance Company: Up 3.9%
• Bajaj Finserv: Up 3.7%
• AXIS Bank: Up 3.4%
• Dr. Reddy’s Laboratories: Top gainer at 3.94%

Conversely, some stocks faced setbacks, including:

• Wipro: Down 1%
• Bharat Petroleum Corporation Ltd (BPCL): Down 1.2%
• Hero MotoCorp: Down 1.5%

Current Market Trends and Predictions

The Nifty 50 had shown signs of weakness recently, closing at lower levels and experiencing selling pressure near 22,500. However, strong buying support emerged, allowing it to recover to this critical threshold. Currently, the index is in search of a definitive direction, with near-term support and resistance levels identified as:

• Support: 22,341 / 22,237
• Resistance: 22,677 / 22,781

A breakout above the medium-term trend line could signal a positive shift in momentum.

Stock Recommendations for Tuesday

Analyst Sachin Gupta suggests potential buying opportunities for the following stocks on Tuesday:

• Multi Commodity Exchange (MCX):

  • Last week, it formed a Hammer candlestick pattern, indicating a bullish reversal.
  • Traders should consider buying around 4,900-4,920, targeting 5,100 / 5,200, with a stop loss set at 4,820.
• Bajaj Finserv:
  • Currently showing a Higher Top and Higher Bottom formation, indicating bullish sentiment.
  • Recommended buying range is 1,850-1,870, with an upside target of 1,970 / 2,030 and a stop loss at 1,810.

Conclusion

As the market seeks stability amidst external pressures, investors are advised to keep a close watch on economic indicators and stock performance. Engaging with sectors showing resilience, particularly in finance and healthcare, may provide growth opportunities in the current landscape.