Market Overview: Nifty 50 and Bank Nifty Performance
The Indian stock market began the new trading week on a cautious note, reflecting continued weakness in investor sentiment. The benchmark Nifty 50 index slipped by 0.63% to close at 24,680.90, while the Bank Nifty fell 0.79% to settle at 56,084.90. Sectoral performance remained mixed, with FMCG being the lone gainer, while Metals and Realty dragged indices down.
The mid-cap and small-cap segments also witnessed selling pressure, correcting by 0.84% to 1.26%, mirroring broader market weakness. Weak cues from both domestic earnings and global uncertainties contributed to the decline.
Trade Setup for Tuesday: Technical Analysis and Outlook
Nifty 50 Levels to Watch
- Key Resistance: 24,800
- Immediate Target on Upside: 24,900
- Key Support Levels: 24,550 – 24,500
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the sentiment remains weak as Nifty is trading below the 24,800 level. A breach below 24,550 could open the gates for a further decline towards 24,500. Conversely, if the index manages to breach 24,800, it may trigger a short-term pullback rally up to 24,900.
Bank Nifty Levels to Watch
- Key Support Zone: 55,500–55,000
- Resistance Zone: 56,400–56,600
As per Bajaj Broking, Bank Nifty continues to find support in the 55,500–55,000 range. However, banking stocks other than ICICI Bank and HDFC Bank are under selling pressure, weakening the broader sentiment in the financial sector.
Global Cues: Trump Tariffs, Trade Deals & US Market Strength
The global equity markets are navigating several headwinds:
- Trump Tariffs: Renewed tariff rhetoric from Donald Trump’s campaign trail has triggered volatility across emerging markets.
- Uncertainty Around Global Trade Deals: Despite strength in the US stock markets, lingering doubts about global trade agreements and geopolitical tensions are making investors wary.
- Foreign Institutional Investors (FIIs): Continuous outflows by FIIs from Indian equities are adding downward pressure.
Domestic Pressure: Earnings Disappointments & Sectoral Drag
Q1 Results Impact
Many key Indian companies have reported below-expectation earnings for Q1FY26, thereby dampening investor confidence. Banking, telecom, and auto sectors are particularly in focus as they report their quarterly numbers this week.
Sectoral Pressure
- Metals: Weak global commodity prices and lower demand forecasts are affecting metal stocks.
- Realty: Concerns over rising interest rates and liquidity issues are weighing on real estate counters.
- IT and Pharma: Mixed global demand outlooks and currency volatility are creating choppy movements.
Eight Intraday Stocks to Buy or Sell on Tuesday (Experts’ Picks)
Leading technical analysts including Sumeet Bagadia (Choice Broking), Ganesh Dongre (Anand Rathi), and Shiju Koothupalakkal (Prabhudas Lilladher) have shortlisted the following eight stocks for intraday trading on Tuesday:
1. Torrent Pharmaceuticals Ltd (TORNTPHARM)
- Buy Price: ₹3,622.90
- Stoploss: ₹3,496
- Target: ₹3,877
- Rationale:
- Trading at an all-time high with bullish continuation pattern
- Strong volume breakout above ₹3,600 resistance
- Sustained buying interest and multi-month consolidation breakout
2. UPL Ltd
- Buy Price: ₹729.85
- Stoploss: ₹704
- Target: ₹781
- Rationale:
- Bullish candlestick formation on daily chart
- Higher swing lows indicate strong trend
- Momentum likely to continue in the short term
3. Punjab National Bank (PNB)
- Buy Price: ₹132.40
- Stoploss: ₹128
- Target: ₹140
- Rationale:
- Consistent upward trajectory with breakout above ₹130 level
- Momentum supported by rising RSI and volume build-up
4. Dabur India Ltd
- Buy Price: ₹587
- Stoploss: ₹570
- Target: ₹615
- Rationale:
- Forming a bullish cup-and-handle pattern
- FMCG sector strength supporting buying sentiment
5. REC Ltd
- Buy Price: ₹484
- Stoploss: ₹470
- Target: ₹510
- Rationale:
- Energy and infrastructure themes gaining traction
- Breakout above previous resistance with good volume
6. L&T Finance Holdings Ltd
- Sell Price: ₹176.10
- Stoploss: ₹181
- Target: ₹165
- Rationale:
- Showing signs of reversal after sharp rally
- Negative divergence on MACD and RSI
7. Adani Ports and SEZ
- Buy Price: ₹1,283
- Stoploss: ₹1,250
- Target: ₹1,350
- Rationale:
- Price moving above key EMAs
- Shipping and infra themes back in focus
8. Tata Motors DVR
- Sell Price: ₹582
- Stoploss: ₹595
- Target: ₹550
- Rationale:
- Weak auto numbers likely to dampen sentiment
- Technical breakdown below ₹585
Conclusion: Volatility Expected but Opportunities Persist
With the Nifty 50 trading below 24,800, technical analysts expect continued weakness unless a breakout is confirmed. However, individual stock-specific action remains vibrant, providing intraday opportunities for traders.
Investors are advised to keep a close watch on Q1 earnings, global cues, and technical breakouts or breakdowns for better decision-making. Meanwhile, sectoral rotation and stock-specific strategies could help navigate the short-term volatility in Indian equity markets.
