The Indian stock market experienced a notable rebound on Tuesday, with the Nifty 50 and Sensex indices rising sharply after a significant decline in the previous trading session. Investors took advantage of lower prices, propelling a broader recovery across Asia, fueled by optimism surrounding U.S. tariff negotiations. By midday, the Nifty 50 had climbed 1.22% to reach 22,432.45, while the Sensex rose 1.13% to 73,962.51, reflecting a collective surge of approximately 1.9% earlier in the day.
Market Recovery Amid Tariff Concerns
Monday’s trading had been challenging, with the Nifty 50 and Sensex recording their largest single-day drops in ten months, falling 3.2% and 3% respectively. This downturn was largely attributed to escalating fears of a global recession linked to newly imposed tariffs from the United States. However, with U.S. stock futures indicating a positive turn, Asian markets also began to recover from their recent lows. Notably, Japan’s Nikkei 225 surged 6.3%, buoyed by statements from President Donald Trump suggesting a possible easing of tariffs following Japan’s commitment to negotiations.
Expert Insights on Market Volatility
Market analysts, including Riyank Arora, a technical analyst from Mehta Equities, highlight that the Nifty 50 remains under pressure, having recently fallen below critical support levels. Current volatility suggests the index may test key support zones around ₹22,200 and ₹22,000. A decisive breakout above ₹22,500 and ₹22,700 could lead to renewed buying interest.
- Nifty 50 Key Levels:
- Support: ₹22,200, ₹22,000
- Resistance: ₹22,500, ₹22,700
Bank Nifty Performance
The Bank Nifty is also facing challenges, hovering just above the psychological mark of ₹50,000. Key support levels are noted at ₹49,800 and ₹49,500, where buying interest may emerge. On the upside, resistance is observed at ₹50,500 and ₹51,000. A breakout above ₹51,000 could signal a bullish trend shift, but market participants are advised to remain cautious due to heightened volatility.
Recommended Stocks for Short-Term Investment
For traders looking for short-term opportunities, Arora recommends the following stocks:
-
Trent Ltd
- Current Market Price (CMP): ₹4,717
- Stop Loss (SL): ₹4,600
- Target Price: ₹5,000
- Trent is showing bullish momentum near its lifetime highs. A sustained level above ₹4,700 could lead to a rally towards ₹5,000.
-
Mazagon Dock Shipbuilders Ltd
- CMP: ₹2,352
- SL: ₹2,250
- Target: ₹2,500
- Despite recent pullbacks, Mazagon Dock remains in an uptrend. Holding above ₹2,300 may attract buyers again.
- Garden Reach Shipbuilders & Engineers (GRSE)
- CMP: ₹1,535
- SL: ₹1,460
- Target: ₹1,670
- GRSE is maintaining position above crucial support levels, and a move above ₹1,540 could trigger further gains.
Conclusion
As the market navigates through volatility, the potential for recovery remains. Investors should keep a close watch on support and resistance levels while considering expert recommendations for stock movements. With the global economic landscape in flux, informed decision-making is key to capitalizing on market opportunities.
