Buy or sell stocks: The Indian stock market endured a volatile trading session as market participants digested the implications of US President Donald Trump’s imposition of a 25% tariff and punitive measures on India. The benchmark indices—Nifty 50 and Sensex—opened on a weak note, slipping nearly 1%, before staging a sharp intraday recovery to reclaim the 24,900 mark. However, renewed selling pressure in the final hour of trade dragged the indices back into negative territory.
The Nifty 50 ultimately settled with a cut of 86.70 points, or 0.35%, at 24,768.35. Sectoral breadth was broadly negative, with all major indices ending in the red barring the Nifty FMCG index, which bucked the trend and gained 1.3%. The outperformance in FMCG names was driven by defensive buying amid heightened volatility and upbeat commentary from sector heavyweight Hindustan Unilever.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment is cautious as the Nifty 50 index is facing a hurdle at 24,900. As Trump’s tariffs on India have become effective today, the market is expected to react, and hence, 24,500 support and 24,950 resistance for the key benchmark index would be crucial. The Indian stock market is expected to trade volatily, and therefore, traders are advised to know their levels and take any decision on the break or breach of those levels.
Speaking on the outlook of the Nifty 50 today, Vaishali Parekh said, “The Nifty 50 index after opening on a weak note, witnessed a strong recovery to touch the 24,950 zone but resisted near the important 50-DEMA zone and fizzled out with heavy profit booking seen to close near the 24,750 level with bias and sentiment precariously placed as of now. As mentioned earlier, on the downside, the index has got the crucial support at the 24,500 level, which needs to be sustained to maintain the overall trend intact and at the same time, on the upside, it would need to breach above the 25,000 zone to improve the bias and expect further rise.”
The Bank Nifty index witnessed a decent recovery from the 55,500 level to scale the 56,400 zone, but saw resistance and slipped down to end just below the 56,000 level, with bias once again maintained with a cautious approach. The index is hovering below the important 50-DEMA zone of 56,100 and would need a decisive revival to move past the barrier, with overall bias precariously placed. “Major support is now positioned near the 100-period MA at 54,500 zone,” said Parekh.
Parekh said the Nifty 50 index’s immediate support is at 24,600, while the resistance is at 25,000. The Bank Nifty’s daily range would be 55,500 to 56,600.
Vaishali Parekh’s stock recommendations today
Regarding stocks to buy today, Vaishali Parekh recommended these three buy-or-sell stocks: Eternal (Zomato), Lloyds Enterprises, and Supreme Industries.
1] Eternal: Buy at ₹310, Target ₹323, Stop Loss ₹303;
2] Lloyds Enterprises: Buy at ₹84, Target ₹93, Stop Loss ₹80; and
3] Supreme Industries: Buy at ₹4323, Target ₹4600, Stop Loss ₹4200.
Trump’s tariffs on India
US President Donald Trump signed a sweeping executive order on Thursday, imposing reciprocal 25% tariffs on Indian imports. The order became effective today as the Indian and US governments failed to reach a consensus on the India-US trade deal. Interestingly, India’s neighbour, Pakistan, has signed a trade deal with the US, and the US government has imposed a 19% trade tariff on the Islamic state.
Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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