Stock Market Expert Sees Breakout Potential in Five Emerging Stocks After Market Rebound

Domestic Equity Markets Close on Good Friday

The domestic equity markets are closed today, Friday, April 3, on account of Good Friday. Yesterday, Thursday, April 2, the benchmark indices, Nifty 50 and Sensex, recovered from earlier declines due to an appreciation in the rupee following measures implemented by the central bank, although fading hopes for a swift resolution to the Iran situation prolonged the losing streak to six weeks.

The Nifty 50 ended 0.15% higher at 22,713.1, while the Sensex rose by 0.25% to 73,319.55 after having dropped more than 2% earlier in the session. On April 2, the Nifty 50 opened on a weak note with a sharp gap-down at 22,383.40 and declined further to an intraday low of 22,182.55 during the first half of the session. In the latter half, strong buying interest emerged, driving the index higher to an intraday high of 22,782.30. Despite the negative start, the index managed to recover and closed in positive territory at 22,713.10, registering a marginal gain of 33.70 points or 0.15% over the previous close.

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On the Nifty 50 outlook, Sumeet Bagadia, Executive Director at Choice Broking, highlighted the immediate support for the index is placed in the 22,450-22,500 range, while resistance is observed between 22,840 and 22,900 levels. The Relative Strength Index (RSI) is currently at 37.56, remaining below the midpoint of 50, which suggests that the momentum lacks strong conviction.

The volatility index, India VIX, rose by 2.04% to close at 25.52, indicating a mild increase in market volatility. In the derivatives segment, notable call writing was observed at the 22,800 strike, followed by the 23,000 strike. On the put side, significant writing activity was seen at the 22,500 and 22,600 strike levels, highlighting key support zones.

Bank Nifty Remains Volatile

The Bank Nifty index remained volatile throughout the trading session. It opened with a sharp gap-down at 50,625.65 and extended its decline in early trade, touching an intraday low of 49,954.85 due to continued selling pressure. Subsequently, strong buying interest at lower levels led to a sharp recovery, pushing the index to an intraday high of 51,731.95. The index eventually closed at 51,548.75, registering a gain of 100.10 points or 0.19% for the day.

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On the Bank Nifty outlook, Sumeet Bagadia said from a technical standpoint, immediate support is placed in the 51,000-51,150 range, while resistance is seen in the 51,860-52,000 zone. The Relative Strength Index (RSI) stands at 35.13 and continues to remain below the midpoint level of 50, indicating that the momentum is yet to strengthen meaningfully.

Recommendations from Sumeet Bagadia

Sumeet Bagadia recommends five shares to buy after the stock market rebound:

These stocks are showing strong bullish momentum and have the potential to move higher in the coming days. However, it's essential to keep a close watch on the market conditions and adjust the stop-loss levels accordingly.