Market sentiment remained upbeat, fueled by optimism regarding the India-U.S. interim trade deal and sustained FII inflows, despite intermittent profit-booking at higher levels.
The advance-decline ratio was decidedly positive at approximately 2:1, reflecting broad-based participation in the mid-cap and small-cap segments.
Sectorally, media, auto, and IT led the charts, with stocks like Eternal and Tata Steel emerging as top performers. Conversely, pharma and FMCG faced mild selling pressure.
Two stock recommendations by MarketSmith India:
Buy: TD Power Systems Limited (current price: ₹852)
- Why it’s recommended: The company has a strong position in AC generator manufacturing, exposure to power, industrial, and export markets, improving order book visibility, an asset-light business model, relatively controlled debt levels, and a focus on high-margin customized generators.
- Key metrics: P/E: 56.87, 52-week high: ₹888.80, volume: ₹371.36 crore
- Technical analysis: consolidation base breakout
- Risk factors: The business faces the cyclical nature of power and capex spending, dependence on a limited number of large orders, export revenue sensitivity to global slowdowns, margin pressure from raw material price volatility, high competition from global players, and execution risk in scaling new orders.
- Buy: ₹840–860
- Target price: ₹1,050 in two to three months
- Stop loss: ₹768
Buy: FSN E-Commerce Ventures Limited (current price: ₹281)
- Why it’s recommended: The company is a leading beauty and personal care e-commerce brand in India with strong brand recall, an expanding omnichannel presence across online and physical stores, a diversified product portfolio including fashion and owned brands, growth in gross merchandise value (GMV) and revenue, improving profitability with Ebitda margin expansion, and large institutional shareholding indicating strong investor interest.
- Key metrics: P/E:506.38, 52-week high: ₹283.53 volume: ₹403.26 crore
- Technical analysis: double-bottom breakout
- Risk factors: The company faces high valuation multiples relative to earnings, historically low profitability margins, intense competition in the e-commerce and retail industry, sensitivity to consumer discretionary spending cycles, margin pressure from discounting and marketing costs, and execution risk in scaling fashion and international operations.
- Buy at: ₹279–283
- Target price: ₹340 in two to three months
- Stop loss: ₹258
Nifty 50 recap
Indian equities closed modestly higher on Tuesday, supported by selective buying in auto, metal, and IT, even as gains remained capped by pockets of profit-taking. Nifty 50 settled at 25,935, up 68 points or 0.26%, after oscillating in a narrow range through the session, while Sensex also ended marginally in the green. Market breadth was positive, with 1,927 stocks advancing and 1,241 declining, indicating a constructive underlying tone despite the lack of strong index momentum.
On the sectoral front, Nifty Auto outperformed with a sharp 1.4% gain, aided by optimism around demand visibility, while Media, Metals, and IT also saw healthy buying. Financials and FMCG posted modest gains, providing stability for the benchmarks. On the flip side, Pharma, PSU Banks, and Healthcare indices underperformed, reflecting stock-specific weakness.
From a technical standpoint, Nifty 50 shows early signs of stabilisation after the recent corrective phase, supported by improving price action on the daily chart. The index formed a higher low over the past few sessions and has closed above above its short-term moving averages, indicating a gradual shift from a sell-on-rise structure to a consolidation-with-positive-bias setup.
Momentum indicators are also turning constructive: the RSI has rebounded sharply from near-oversold territory and is now placed around the mid- to high-50s, reflecting improving buying strength without entering overbought conditions. Meanwhile, the MACD has witnessed a bullish crossover, with the histogram turning positive, highlighting a pickup in upward momentum.
According to O’Neil’s methodology of market direction, the Indian equity market has transitioned from a downtrend to a Rally Attempt, indicating an early improvement in the near-term market tone.
The index has delivered a decisive close above its 50- and 100-DMA in a single move, underscoring a sharp improvement in near- to medium-term sentiment. However, following the recent euphoric single-day rally, the market is likely to approach consolidation as it digests the gains and attempts to form a healthy base at higher levels. Such stabilization would be constructive for the sustainability of the ongoing uptrend.
On the downside, 25,400–25,100 is expected to act as an immediate cushion, where buying interest may emerge on declines. On the upside, 25,800–26,000 represents a strong hurdle for the index, given the supply seen near higher levels. A sustained close above 26,000 would be a key technical trigger and could open the door for further upside toward 26,300–26,400 in the near term.
How did Nifty Bank perform
Bank Nifty experienced a range-bound and slightly soft session on Tuesday, ultimately settling at 60,568.25, down approximately 43 points or 0.07%. Despite a strong opening at 60,740 on positive global cues, the index encountered sustained resistance near 60,800, leading to an intraday paring of gains.
The performance was largely a tale of two halves: public sector banks showed resilience, led by State Bank of India (SBI), which touched a record high of ₹1,153.85 on the back of stellar sectoral Q3 profits. However, heavyweights like HDFC Bank and ICICI Bank saw tactical profit-booking, weighing on the private banking basket. Sentiment remained supported by FII net buying of over ₹2,250 crore and a favorable macro environment post-budget, including the India-US trade framework optimism
From a technical perspective, Bank Nifty ended the session in a consolidation phase, reflecting fatigue after the recent recovery. Price action on the daily chart shows a narrow-bodied candle with a lower close, indicating intraday selling pressure at higher levels.
The index has been oscillating around its short-term moving averages, highlighting indecision and a lack of immediate directional follow-through. Momentum indicators are gradually improving. The RSI has rebounded from lower levels and is now hovering close to 60, signalling strengthening momentum without entering overbought territory.
This points to a constructive undertone, even as the pace of gains has slowed. Meanwhile, the MACD is showing early signs of a bullish reversal, with the histogram turning positive and the signal lines converging, indicating a potential pickup in upside momentum.
On the support front, immediate support for Nifty Bank is placed near 60,500–60,400, aligned with key moving averages of 21- and 50-DMA, respectively. On the upside, resistance is seen near 61,000, and a decisive breakout above this level could open the door toward 61,500–62,000 in the coming sessions.
Based on the current technical structure, improving momentum indicators, and stable broader market sentiment, Nifty Bank is likely to remain range-bound with an upward bias in the near term. Sustained buying above resistance could trigger fresh upside, while dips toward support may continue to attract accumulation.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
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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.
