Indian frontline indices ended flat in a volatile session dragged by bank and IT stocks. While Nifty closed at 22,552.50, up by 7.80 points or 0.03% recording its third successive positive closing, the BSE Sensex closed in the red at 74,332.58, declining by 7.51 points or 0.01%.
Commenting on the day’s action, Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One said that the market sentiments revealed a discouraging structure as FIIs continue to sell off, followed by global uncertainty, contributing to a cautious market atmosphere.
“From a technical viewpoint, the Nifty index is near a crucial support zone around the 89-week exponential moving average (WEMA), historically a strong price reversal area, highlighted during significant rallies in the past. This support zone ranges from 22,000–21,800, where previous buying interest was noted,” Krishan said.
“However, historical trends indicate we might be nearing a market pause, with signs of overselling leading to corrections in inflated valuations. This environment is ripe for identifying fundamentally strong stocks at attractive price points, enabling investors to position for future gains,” he suggested.
Given the recent trend of short-lived bounces, he recommended avoiding labeling the current bounce as a confirmed bottom and instead suggested a cautious, step-by-step approach while closely monitoring price action.
Here are 5 stock recommendations for Monday:
