On Tuesday, the Indian stock market commenced on a positive trajectory, with the benchmark indices Sensex and Nifty 50 exhibiting gains. This upward momentum was driven by favorable global cues and led by robust performances in the realty and information technology (IT) sectors. According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market’s inherent bullishness has been reinforced over the past two trading sessions, with the Nifty 50 recovering by 486 points since Friday’s lows. This fundamental positive trend has remained unaffected by external factors, including elevated US bond rates and geopolitical concerns in the Middle East.
The NSE Nifty 50 opened at 22,447.05, a gain of 110.60 points or 0.50%, while the 30-share BSE Sensex commenced trading at 74,048.94, an increase of 400.48 points or 0.54%. Both the Nifty 50 and Sensex had closed higher during Monday’s trading session, indicating a degree of respite for investors amid global tensions. The positive catalyst for this rally was the decline in WTI Oil prices to $81.66. Analysts attributed this rise to the dwindling likelihood of escalated tensions between Iran and Israel.
All sectoral indices closed with gains, with Nifty PSU Bank emerging as the top performer with a rise of 3.3%. The 30-share BSE Sensex concluded the day at 73,648.62, a gain of 560.29 points or 0.77%, while the NSE Nifty 50 closed at 22,336.40, an increase of 189.40 points or 0.86%.
Market Analyst Ruchit Jain of 5paisa commented on the Nifty 50’s positive start to the week, noting its consolidation within a range before ending near its day’s high above 22,350 with a gain of around 1%. Jain highlighted that while the markets have started the week on a positive note, the overall derivatives data remains negative due to recent short positions taken by FIIs and unfavorable RSI readings on daily and weekly charts. As such, this seems to be a pullback move, and resistance may be encountered at the 61.8 percent retracement level around 22,400. Jain emphasized the importance of monitoring the index’s performance around this hurdle, as a sustained move above with a change in data would confirm the continuation of the uptrend. On the downside, Jain identified immediate support for the index at 22,000 and positional support around the recent swing low of 21,750, which aligns with the 89 DEMA support.
For traders, Jain recommends focusing on stock-specific trading opportunities while also considering profit-booking on rallies around resistance zones.
Regarding specific stocks in focus for Tuesday, Jain recommends buying two stocks: Hindustan Unilever Ltd (HUL) and Havells India Ltd.
For Hindustan Unilever Ltd (HUL), Jain observes a potential reversal pattern in the stock after a period of correction. The formation of a ‘Falling Wedge’ pattern on the daily charts, coupled with positive divergence in the RSI oscillator, suggests a possible pullback move in the near term. Jain advises short-term traders to consider buying the stock in the range of 2,240–2,220, targeting potential gains of 2,380–2,400, with a stop loss below 2,150.
For Havells India Ltd, Jain highlights the stock’s positive overall structure, evidenced by buying interest on declines and support from the 89 DEMA. Traders are advised to buy the stock in the range of 1,550–1,530, aiming for potential targets of 1,650 and 1,720, with a stop loss below the support level of 1,450.
