The domestic stock market is expected to open on a slow and cautious note today, with the Gift Nifty falling 54 points to indicate a weak start for the domestic market. In the previous session, domestic stock indices closed in the negative territory with the Sensex closing down 307.24 points, or 0.40 percent, at 76,957.27, while the Nifty 50 fell 95.25 points, or 0.39 percent, to settle at 24,080.40. The benchmark Nifty 50 closed below the 24,100 level, which had been a key resistance zone in the previous session. However, multiple days below 24,000 have lent a cautious bias to traders, with the index now approaching the 23,800 floor for support.
Foreign Institutional Investors (FIIs) added to their index future short positions through the week, with the Nifty's decline ending the week at 2,69,527 contracts, the highest of the week, and an 18.8% increase on a week-on-week basis. The long-to-short ratio of FII index future portfolio ended at 11.1, not very far from record lows. However, some FIIs also boosted their longs, registering a near 40% increase on a week-on-week basis, lifting the total FII longs to 33,689 contracts, the highest since early July. This suggests that FIIs have taken a tactical position expecting upswings in the coming week, despite the current bearish sentiment.
The Nifty Pharma Index has started to look technically vulnerable after slipping below the support line of its rising wedge pattern, suggesting that the medium-term bullish momentum may be fading. The index is now approaching the 26,160 region, which is important because it aligns with both the 50-day moving average and a key horizontal support zone. If the index fails to hold this level convincingly, the corrective move could extend further, with 25,500 emerging as the next area to watch. The daily MACD has moved below its signal line, pointing to a loss of upward strength, while the RSI, currently around 49, remains below the neutral zone and still leaves room for additional downside. The weekly MACD has also started to flatten, adding to the sense that the broader uptrend is losing conviction.
The Nifty FMCG Index continues to remain under pressure after extending its corrective phase, but it is now approaching an important support area around 45,400. This zone carries technical significance as it is close to a recent reversal area and also lies near the weekly Supertrend support. The broader setup remains weak, with the index trading below key resistance levels, but the proximity to support makes the next few sessions especially important. Momentum indicators are beginning to suggest that the selling pressure may be close to exhaustion, with the daily RSI moving into oversold territory and the MACD histogram showing signs of tiring momentum. Several heavyweight FMCG names, including Hindustan Unilever, ITC, Varun Beverages and Britannia, are also trading close to important support levels and showing oversold readings.
Multiple experts have identified eight stocks for investors to buy and sell in today's trade across various sectors. Chandan Taparia of Motilal Oswal recommends buying Sona BLW Precision Forgings at ₹825 with a target of ₹850, noting the stock is in an overall uptrend with strong underlying demand and has formed a strong base around the 800 zones. He also recommends Aurobindo Pharma at ₹1,680 with a target of ₹1,750, citing the stock is in all-time high territory with sustained buying interest, and Grasim Industries at ₹3,350 with a target of ₹3,450, noting it has given a breakout range above the 3,350 zone. Choice Broking's Sumeet Bagdia recommends five breakout stocks including Lumax Auto Technologies, Vijaya Diagnostic Centre, Tamil Nadu Mercantile Bank, EPL and Sunsera Engineering. Additional recommendations include Lenskart Solutions, Piramal Finance, Blue Star, TVS Motor Company, Cipla, Fujiyama Power Systems, Greaves Cotton, Computer Edge Management Services, Ujjivan Small Finance Bank, BHEL and CAMS.
