Indian equity markets extended their decline for a second consecutive session on Tuesday, as investors grappled with persistent global trade uncertainties and continued foreign fund outflows. The benchmark indices faced significant selling pressure, with attention remaining focused on the ongoing quarterly earnings season.

Market Performance

The key market indices registered notable declines during the trading session:

The broader market weakness underscored a cautious risk tone among investors, with both mid-cap and small-cap segments participating in the decline.

Sectoral Movement

Among the 30-stock Sensex constituents, several major stocks led the decline:

• Bajaj Finance - declined between 1% and 2%
• InterGlobe Aviation (IndiGo) - declined between 1% and 2%
• Asian Paints - declined between 1% and 2%
• Eternal - declined between 1% and 2%
• Bajaj Finserv - declined between 1% and 2%

However, some individual stocks bucked the trend, with Aditya Birla Fashion & Retail surging as much as 9.00%, significantly outperforming the broader market. Tata Capital shares climbed more than 2.00% following the lender's strong December-quarter performance, driven by sharp profit increases and steady growth across key operating metrics.

Institutional Activity

Foreign and domestic institutional investor flows showed contrasting patterns:

Global Market Context

Asian markets retreated broadly on Tuesday as renewed trade-war concerns dampened risk appetite. The unease intensified after Trump revived tariff threats regarding greater U.S. control over Greenland, raising concerns about fresh trade frictions with Europe. U.S. equity futures pointed lower, with Nasdaq and S&P 500 contracts declining approximately 1.00%.

MSCI's broad index of Asia-Pacific shares outside Japan fell 0.44%, moving further away from record highs reached the previous week. The yield on the benchmark 10-year Treasury climbed to 4.27%, its highest level since early September.

Currency and Commodities

The Indian rupee slipped marginally in early trading, weakening by one paisa to 90.91 against the U.S. dollar, remaining under pressure near the psychologically important 91 level. The dollar index fell to a one-week low of 99.06, offering limited relief to emerging-market currencies.

In commodities, gold traded little changed at $4,670.00 per ounce, hovering just below the record peak set the previous day. Oil prices edged higher, with Brent crude futures rising 19 cents or 0.30% to $64.13 per barrel, supported by stronger-than-expected economic growth data from China.

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.