The Indian stock market experienced a weak and range-bound week, with the Nifty 50 declining by approximately 0.8% to 24,366 and the Sensex dropping nearly 0.6% to about 78,000. This downturn ended a two-week winning streak, influenced by US-Iran tensions, volatile crude oil prices, and global yield uncertainty.
Mid- and small-cap stocks also saw declines, with sectors such as metals, pharma, and auto underperforming, while consumer durables showed resilience. Despite the subdued volatility with India VIX near 11.3, the market remained cautious. Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi, views the current pullback as a healthy retracement rather than a reversal, with major support for Nifty 50 at 24,190-24,054.
Kothari suggests that the Nifty 50's retracement towards the 50% Fibonacci level of 24,190 presents a buying opportunity, with further corrections towards the 24,054 level being the maximum downside in the current phase. A sustained move above 24,500 could lead to a rally towards 25,000 and higher levels in the coming weeks.
“We maintain our bullish stance and expect the index to regain momentum on a sustained move above 24,500, which could gradually pave the way towards 25,000 and higher levels in the coming weeks.”
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi
Regarding the Bank Nifty index, Kothari notes it is in a consolidation phase, forming a symmetrical triangle pattern. A move above 58,000 could trigger fresh buying momentum, potentially leading to a rally towards 59,000–59,500. The 57,000 level remains crucial as a support point.
Mehul Kothari recommends three stocks to buy under ₹200: IRB Infra, MMTC, and CESC. He advises buying IRB Infra above ₹19.50 with a target of ₹21, MMTC above ₹65 with a target of ₹68, and CESC around ₹167 with a target of ₹180.
“On the downside, the 57,000 level, which coincides with the rising trendline support, remains crucial.”
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi
Background
The Indian stock market has been under pressure due to geopolitical tensions and fluctuating crude oil prices. However, strong Q1 FY27 earnings have provided some support. Understanding the market's technical levels is crucial for investors aiming to capitalize on potential buying opportunities.
Investors should remain vigilant as market conditions evolve. Monitoring key support and resistance levels will be crucial for making informed investment decisions in the coming weeks.
