CHENNAI: After a strong rally witnessed on Monday fueled by a confluence of positive global and geopolitical developments, Indian stock markets opened with some volatility on Tuesday, quickly giving back some of the gains from Monday’s rally.
The Nifty 50 briefly held above 24,950 at the open, but soon slipped below 24,700. Meanwhile, the BSE Sensex dropped 960 points in early trade, with IT and banking stocks emerging as the primary laggards. This sharp decline contrasts with the performance seen on Monday, when both indices recorded their strongest single-day rally in four years.
India-Pakistan Conflict in Focus
Tensions between India and Pakistan remain a key concern for investors, following cross-border disturbances late on Monday evening near the Rajouri sector. The Indian government has reportedly increased its military readiness in response to potential retaliation threats, as highlighted in the Prime Minister’s address to the nation yesterday. However, investors appear broadly concerned, say market experts.
Diplomatic efforts to de-escalate the situation have been quiet, further raising regional risk and contributing to market uncertainty. Despite the current strength, analysts suggest the market may enter a near-term consolidation phase as participants await corporate earnings for clearer direction.
Stocks to Watch
According to various reports, market analysts, citing sectoral developments and technical indicators, have identified the following stocks as their key picks:
India Glycols Ltd: Trading at an all-time high of ₹1563.2 after breaking out above key resistance at ₹1515. Supported by strong volumes and bullish momentum, the stock signals further upside potential.
Innova Captab Ltd: The stock has decisively broken out of a prolonged consolidation phase near its 200-EMA, backed by robust volumes and a bullish candlestick pattern.
Cyient Ltd: A Bullish Engulfing pattern on the daily chart suggests a potential trend reversal. Renewed buying interest has emerged near the ₹1200 support zone.
Apollo Tyres Ltd: A bullish reversal candlestick near key support and trading above the 50-day EMA indicates a positive price setup.
Housing & Urban Development Corporation Ltd (HUDCO): A higher-bottom formation, combined with a strengthening RSI, signals an upward trend.
Power Grid Corporation of India Ltd: The stock has bounced off its 50EMA with a strengthening RSI, pointing to a possible trend reversal.
Rashtriya Chemicals and Fertilizers Ltd (RCF): Recovering from its 50EMA, the stock is showing signs of bullish momentum supported by a favorable RSI pattern.
Market Outlook
While today’s slight rally is underpinned by improving macroeconomic conditions and global sentiment, experts caution that the next leg of the rally may depend on concrete signs of earnings growth and clarity on domestic policy direction. In the interim, mid- and small-cap stocks are expected to sustain their outperformance, supported by continued retail interest and sector-specific drivers.
Disclaimer: The stocks mentioned as analysts' pick are not a recommendation to investors to buy or sell. Investors should use their own discretion to invest as per their stock intelligence.