Indian stock markets are currently exhibiting heightened volatility as investors navigate a landscape shaped by macroeconomic data releases and the Reserve Bank of India's (RBI) upcoming policy meeting. Both the Sensex and Nifty 50 experienced range-bound movement, closing nearly flat.
Global and Domestic Factors Influencing the Market
Investor sentiment is being influenced by a mix of global and domestic factors. Optimism surrounding potential interest rate cuts by the US Federal Reserve is contributing to positive sentiment. Additionally, positive global cues and a decline in crude oil prices have boosted investor confidence. Domestically, the market is awaiting the US Federal Reserve's policy announcement and Chair Jerome Powell's remarks for signals on the trajectory of interest rates. Robust macroeconomic fundamentals, infrastructure growth, and corporate earnings continue to underpin market optimism.
Nifty 50 Trade Setup
The technical structure for the Nifty 50 remains bullish, with support identified at 25,850. A breach of this level could lead to consolidation. On the upside, a break above 26,100 may drive the Nifty towards 26,300–26,500 in the short term. Market experts are advising traders to maintain a cautious stance unless the index moves decisively above the 26,100 level.
Sectoral Performance and Stock Recommendations
Cyclical sectors such as metals and banks are driving gains, reflecting a stronger risk appetite. The Nifty Metal and Oil & Gas indices have outperformed, climbing nearly 2%, supported by firm global commodity prices and easing crude oil concerns. Conversely, the Auto sector and certain banking stocks have experienced mild profit-booking after recent rallies.
Analysts have recommended a list of eight stocks for intraday or short-term consideration. These include Federal Bank, Tech Mahindra, KEI Industries, Astra Microwave Products, Astral, TD Power Systems, NOCIL, and Sundram Fasteners. Bullish indicators such as rising moving averages, RSI strength, double-bottom formations, and breakout potential have been cited as reasons for these recommendations.
Gold and Silver Prices
Gold and silver prices are expected to react sharply to the Fed's policy stance. A dovish tone could lift precious metals, as lower yields often support non-interest-bearing assets like gold and silver.
Disclaimer: The recommendations and observations made are based on market analysis and expert opinions. Investors are advised to conduct their own research and consult with a financial advisor before making any investment decisions.
