The Indian stock market faced selling pressure on Monday, January 19, as weak global cues and disappointing Q3 earnings results weighed on investor sentiment. US President Donald Trump's tariff threats against eight European countries added to global uncertainty, while persistent foreign institutional investor (FII) outflows and caution ahead of the Union Budget 2026 further contributed to the market decline. The Nifty 50 index has broken below the crucial support level of 25,600, indicating potential for further correction, though experts see key support emerging in the 25,300-25,400 range.

Expert Recommendations from Master Capital Services

Vishnu Kant Upadhyay, AVP-Research & Advisory at Master Capital Services, has identified three stocks with strong technical setups for short-term trading opportunities.

HCL Technologies has delivered a decisive breakout from over a month-long consolidation phase, accompanied by strong closing prices that signal a clear shift in momentum favoring bulls. The stock is trading comfortably above all key exponential moving averages, highlighting a well-established upward trend, while the daily MACD has turned positive, confirming strengthening momentum and improved buying interest.

TVS Motor Company has taken strong support near its 55-day EMA and witnessed a clear reversal from that level, indicating renewed buying interest. The stock continues to trade above its rising ascending trendline, maintaining a structure of higher highs and higher lows that reflects sustained bullish momentum. This price action suggests buyers are effectively defending key support zones on minor declines.

IIFL Finance continues to maintain a strong bullish structure marked by a consistent pattern of higher highs and higher lows. The recent price correction was shallow, with the stock finding immediate support at the 21-day EMA, which is acting as a strong buying zone. Prices remain well above the 55-day EMA, reinforcing the strength of the prevailing uptrend, while the stock has shown resilience during broader market weakness.

Technical Picks from Choice Equity Broking

Hitesh Tailor, Technical Research Analyst at Choice Equity Broking, has recommended three additional stocks based on favorable technical patterns and momentum indicators.

Sundaram Finance is showing a positive technical outlook with a bullish pullback pattern and has successfully reversed from the previous swing low, indicating trend continuation. The stock is trading above its key EMAs, which are sloping upward and providing strong support, while RSI remains above the neutral zone and is turning higher, reflecting improving momentum.

DCB Bank continues to show strength, maintaining a higher high and higher low structure that indicates a strong uptrend. The stock has taken support above its previous breakout zone and is moving higher, trading above the key 20, 50, 100, and 200-day EMAs, reflecting sustained bullish momentum. The RSI at 72.28 signals strong upward momentum, with immediate support visible in the ₹185.00-190.00 zone.

Hindustan Zinc is exhibiting strong bullish momentum on the daily timeframe, having formed a well-defined rounding bottom pattern while continuing to post higher highs and higher lows. A decisive breakout above the ₹656.00 swing high, accompanied by rising volumes, confirms strong buying interest. The stock is trading above all major EMAs across timeframes, with weekly RSI at 65.89 suggesting positive momentum.

Market Outlook and Risk Management

Despite the broader market weakness and the Nifty 50's breach of key support levels, these six stocks demonstrate favorable technical characteristics that could provide short-term trading opportunities. The recommendations emphasize the importance of disciplined risk management, with clearly defined stop-loss levels for each position. Investors should remain cautious given the current market environment and consider these picks within the context of their overall portfolio strategy and risk tolerance.

The Indian stock market is expected to open flat-to-positive on Tuesday, with Gift Nifty trading up 38 points or 0.15% at 25,605. This comes amid ongoing geopolitical tensions and renewed U.S. tariff threats that have created uncertainty in global markets. Asian markets mostly traded lower on Tuesday, reflecting the cautious sentiment among investors.

Market Performance and Outlook

On Monday, both major Indian indices remained in negative territory due to weak global cues and concerns over potential trade wars following U.S. President Donald Trump's announcement of tariffs on eight European countries.

According to Ponmudi R, CEO of Enrich Money, "Indian equities are set to open with a cautious undertone as global trade uncertainties, driven by aggressive use of tariffs by the U.S. administration, continue to trigger a risk-off mood across global markets. Steady buying by domestic institutional investors continues to act as a key stabiliser, absorbing selling pressure and helping prevent deeper drawdowns in the market."

Quarterly Earnings in Focus

Several companies are scheduled to announce their Q3 FY26 results today, which will likely drive investor interest and trading activity.

Companies Declaring Q3 FY26 Results:

• ITC Hotels
• IndiaMART InterMESH
• AU Small Finance Bank
• Rallies India
• SRF

Major Corporate Developments

Adani Power

Adani Power secured a significant victory at the NCLAT in Delhi after the tribunal rejected appeals challenging its ₹4,000 crore resolution plan for Vidarbha Industries Power Limited. This decision effectively affirms the approval previously granted by the NCLT Mumbai Bench.

LTIMindtree

The company delivered mixed Q3 FY26 results, reporting challenges due to regulatory changes.

Tata Capital

The company posted strong quarterly growth across key financial metrics.

Business Expansion and Strategic Initiatives

UPL

UPL's subsidiary, Advanta Enterprises, has submitted a Draft Red Herring Prospectus (DRHP) to SEBI for a proposed IPO. The issue will be a pure offer for sale, with existing shareholders offloading 3.61 crore equity shares, including 2.81 crore shares to be sold by UPL.

Hindustan Petroleum Corporation

HPCL entered into a 10-year Sale Purchase Agreement with Abu Dhabi Gas Liquefaction Company (ALNG), UAE, to source Liquefied Natural Gas. ALNG is a subsidiary of ADNOC Gas.

Deepak Nitrate

The company's subsidiary, Deepak Chem Tech, has operationalised its nitration facility along with the second hydrogenation plant at Dahej, Gujarat.

Strong Quarterly Performances

CEAT

CEAT delivered exceptional Q3 results, demonstrating robust operational performance.

Havells India

Havells India posted mixed Q3 FY26 results with revenue growth but profit below expectations.

ACME Solar

Renewable energy firm ACME Solar announced the commencement of operations for 68 MW of generation capacity under its 100 MW wind power project in Surendranagar, Gujarat, marking progress in its renewable energy expansion.