The Indian stock market is expected to open with a flat-to-positive start today, tracking positive global cues despite some mixed signals. The Gift Nifty is trading lower by around 176 points, according to Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, indicating a potential gap-down opening. However, this negative opening signal comes against the backdrop of positive global market momentum, with US markets ending in green on Friday supported by a strong rally in Apple shares, which climbed 3.9%. Asian markets are also trading in green on Monday, tracking positive cues from Wall Street overnight, suggesting a more optimistic start than initially anticipated.
As reported by Prabhudas Lilladher, the Nifty 50 is currently trading in the 23,800 to 24,300 range, with a bullish or bearish trend expected on breakage of either side of this range. Parekh noted that the index fizzled out once again at the tough resistance barrier at 24,300 and closed near the 24,100 zone, maintaining a cautiously positive bias. On the downside, the 23,800 level shall be positioned as the important near-term support which needs to be sustained, while the index would need to decisively breach above the 24,300 level to establish conviction and stability. The Nifty 50 opened with an upward gap and remained in positive terrain throughout the day, as noted by market analysts, indicating underlying strength despite the gap-down Gift Nifty signals.
According to Prabhudas Lilladher, the Bank Nifty index opened on a positive note but could not sustain above the 55,600-zone, finding resistance and slipping down as the day progressed to end on a flat note near the 54,900 level with a positive bias maintained. The index has important near-term support at the 54,400 level, which needs to be sustained, while the important support at 53,500 levels shall be the crucial zone. On the upside, the 50-EMA at 56,100 level would be the important hurdle which needs to be breached above decisively. The Bank Nifty extended the gains for the second straight week and closed at all-time high, amid positive global cues, as reported by market analysts, suggesting strong institutional interest despite short-term volatility.
As reported by Prabhudas Lilladher, most sectors participated in the move during Monday's session, with realty, metals, and pharma among the top gainers, while key sectors such as banking and IT remained relatively subdued. Broader markets outperformed, with midcap and smallcap indices advancing around 0.8% each, indicating strong participation across market capitalizations despite mixed global cues. Indian Smallcaps Lead Broad-Based Market Surge Despite Weak Macro Backdrop, with the index hitting 24,290 early and remaining in positive terrain throughout the day. Key market drivers include GST collections surge to record high of ₹2.43 lakh crore in April with 8.7% growth in April, and positive developments in bilateral trade relations with India and UK discussing ways to boost two-way commerce.
Vaishali Parekh of Prabhudas Lilladher has recommended three stocks to buy today with specific entry points and targets: Vishal Mega Mart at ₹126 with target ₹132 and stop loss ₹123, Jio Financial Services at ₹252 with target ₹260 and stop loss ₹248, and Belrise Industries at ₹215 with target ₹220 and stop loss ₹212. These recommendations come amid the cautious market bias and the expected gap-down opening based on Gift Nifty signals, though the overall market sentiment appears more positive given the flat-to-positive opening expectations.
