The Indian stock market staged a strong recovery on Monday, with key benchmark indices snapping a five-day losing streak amid optimism surrounding India-US trade deal discussions. Market expert Vaishali Parekh has identified three stocks for intraday trading opportunities as volatility continues in both equity and commodity markets.

Market Performance Overview

The major indices showed significant recovery from early weakness on Monday. Here's how the key benchmarks performed:

Sectoral performance remained mixed during the session. Realty and pharma sectors faced pressure, while metals, financials, and FMCG stocks witnessed buying interest later in the day, helping stabilize the overall market sentiment. Mid-cap and small-cap indices also recovered from early weakness to end broadly flat.

Technical Analysis and Market Outlook

Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, noted that market sentiment has improved following Monday's strong recovery. The Nifty 50 index experienced a volatile session, initially sliding to hit lows near the 25,475 zone before surging strongly to recover intraday losses.

Key Technical Levels for Nifty 50:

• Major Support: 25,000 zone (200-period MA)
• Immediate Support: 25,650
• Resistance: 25,900 zone (50EMA), 26,000
• Daily Range: 25,650 to 26,000

For the Bank Nifty index, Parekh observed that after a weak morning session that saw the index slip to the 50-DEMA level at 58,900, it witnessed a strong bounce back to close near 59,450. The index has sustained near the important near-term support of 58,800 zone and would need a decisive close above 60,000 to trigger fresh upward movement.

Intraday Stock Recommendations

Parekh has recommended three stocks for intraday trading with specific entry points, targets, and stop-loss levels:

All three recommendations are buy positions, reflecting the analyst's positive outlook on these specific stocks despite broader market volatility.

Commodity Market Developments

Gold and silver prices reached record levels amid concerns over Federal Reserve independence under the Trump administration. International spot gold eased to near $4,588 per ounce after jumping 2.00% in the previous session, while silver prices dropped 1.20% after surging more than 6.00% on Monday.

MCX Precious Metals Performance:

The rally in bullion prices was supported by a weak US dollar and uncertainty over a potential Trump administration criminal probe into Federal Reserve Chair Jerome Powell, which has deepened market concerns about central bank independence.

The combination of equity market recovery and record-high precious metal prices reflects the complex dynamics currently affecting financial markets, with geopolitical uncertainties continuing to influence investor sentiment across asset classes.

Indian benchmark indices Sensex and Nifty 50 are positioned for a marginally higher opening following mixed global market signals and key domestic developments. The markets demonstrated resilience on Monday, breaking a five-day losing streak amid indications of potential US-India trade deal discussions.

Market Performance and Outlook

The previous trading session showed encouraging signs for Indian equities:

Gift Nifty was trading around the 25,926 level, representing a premium of nearly 50 points from the Nifty futures' previous close, indicating positive momentum for the opening session. Market experts suggest maintaining a selective, stock-specific approach with disciplined risk management given the current environment of mixed cues and elevated volatility.

Global Market Developments

Asian Markets Performance: Asian markets traded higher, led by strong gains in Japanese equities. Japan's Nikkei 225 surged 3.40%, while the Topix rallied 2.13%. South Korea's Kospi gained 0.62%, though the Kosdaq declined 0.30%. Hong Kong's Hang Seng Index futures indicated a higher opening.

US Market Records: US stock markets ended higher with both the S&P 500 and Dow Jones registering record closing highs:

Notable individual stock movements included Apple rising 0.34%, AMD gaining 2.22%, and Walmart jumping 3.00%, while Microsoft fell 0.44% and American Express declined 4.30%.

Key Policy and Economic Updates

Trump Administration Tariff Announcement: US President Donald Trump announced immediate implementation of 25% tariffs on any country conducting business with Iran, stating the measure would apply to "any and all business being done with the United States of America."

Federal Reserve Stance: Federal Reserve Bank of New York President John Williams indicated that monetary policy is "in a good place," with no near-term pressure to change interest rate levels.

Domestic Economic Indicators

Inflation Data: Retail inflation rose to a three-month high of 1.33% in December, primarily driven by higher food prices. This represents an increase from 0.71% in November, though significantly lower than the 5.22% recorded in December 2024.

Tax Collection Performance: Direct tax collections demonstrated strong growth, jumping 8.80% year-on-year to ₹18.37 lakh crore as of mid-January. This compares favorably to ₹16.88 lakh crore collected during the same period in the previous year.

Corporate Results and Commodity Updates

TCS Q3 Performance: Tata Consultancy Services reported mixed quarterly results:

The company declared a total dividend of ₹57.00 per share.

Commodity Market Movements: MCX gold and silver prices reached record highs, with gold gaining over 2.00% to near ₹1.42 lakh per 10 grams and silver jumping more than 6.00% to above ₹2.68 lakh per kg. Crude oil prices rose to near one-month highs, with Brent crude gaining 0.69% to $64.29 per barrel and WTI crude futures advancing 0.71% to $59.92.