Stock market on Monday

After a shaky start, benchmark indices Sensex and Nifty managed to recover some ground thanks to a strong bounce in midcaps, smallcaps, metal, and PSU stocks, which provided much-needed support by the afternoon. Still, auto and IT stocks remained under pressure as escalating geopolitical tensions—sparked by a US strike on Iranian nuclear sites—rekindled fears of a broader conflict, leaving global markets on edge. The benchmark indices closed in the red.

With crude oil prices hovering above $78 per barrel amid fears of disruption at the key Strait of Hormuz, investor sentiment took a hit—particularly for companies reliant on oil.

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The Nifty 50 slipped below 25,000, while the Sensex ended the session down by 511.38 points or 0.62%, at 81,896.79. The Nifty closed 140.50 points lower, registering a 0.56% drop to settle at 24,971.90.

Although the day started with a sharp sell-off, partial recovery came from gains in metal stocks and resilience in mid- and small-cap segments. The BSE midcap index inched up by 0.2%, and the smallcap index posted a stronger gain of 0.6%, outperforming their large-cap counterparts.

Outlook for trading

Markets had been on the up before the conflict between Israel and Iran made things worse. The US’s entry into the conflict is sending ripples across global markets, pushing crude oil prices higher owing to concerns about supply disruptions, particularly in the Strait of Hormuz. Rising oil prices impact transportation, energy, and food costs, raising inflation risks just as central banks were beginning to ease policies.

The intraday charts below indicate that the gap resistance zone around 25,100 played a part in the market recovery and thus halted its progress. As trends try their best to recover, we now see that trendline support from lower levels, around 24,900, will come into play.

Also read: Why monetary policy moves are out of sync worldwide

The Max Pain Point has shifted to 24,800 as the PCR has remained just above 1, indicating that the lower levels are being defended. However, one must accept that selling pressure has stepped up once again. As the trends are spending some time holding on to the bullish bias seen on Monday, we continue to witness some encouraging triggers.

Two stocks to trade today, recommended by NeoTrader’s Raja Venkatraman

Kirloskar Brothers Ltd (current price ₹1,922.60)

KIRLOSBROS:Buy CMP and dips to ₹1870, stop ₹1850 target ₹2025-2075

• Why it’s recommended: KIRLOSBROS recently reported a significant turnaround this quarter, with numbers that could help it stem the stock’s decline. With a long body candle on Monday and some encouraging numbers we could expect the trends to show some robustness. Also, a positive long body candle highlights that the improving scenario will now push the trends to new highs. A fresh uptick in momentum is encouraging.
• Key metrics:
  • P/E: 55.57
  • 52-week high: ₹1422.35
  • Volume: 343.15K
• Technical analysis: Support at ₹1,576, resistance at ₹2,200
• Risk factors: Demand conditions in urban areas and seasonality headwinds
• Buy: CMP and dips to ₹1m870
• Target price: ₹2,025-2,075 in 1 month.
• Stop loss: ₹1,850

Also read: Paint industry’s first dip in 20 years—is a rebound next?

BEML Ltd (Current price: ₹4,788.70)

BEML:Buy above ₹4,790 and dips to ₹4,680; stop ₹4,650; target ₹5,285-5,425

• Why it’s recommended: Defence stocks have been moving along quite well. The last few days we have seen a strong push backed by volumes, suggesting a trended action. Prices have been consolidating and a strong push above value area resistance around ₹4,400 augurs well for the stock. Momentum is also providing a favourable tailwind, so prospects appear bullish.
• Key metrics:
  • P/E: 65.68
  • 52-week high: ₹2,350
  • Volume: 3.01M
• Technical analysis: Support at ₹4,100, resistance at ₹5,500
• Risk factors: Industry competition , market volatility, elongated operating tailwind
• Buy: Above ₹4,790 and dips to ₹4,680
• Target price: ₹5,285-5,425 in 1 month
• Stop loss: ₹4,650

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.