Volatility Persists as Nifty 50 Index Remains Under Pressure

The Indian stock market has been under pressure due to rising crude oil prices and geopolitical tensions. Despite strong GDP growth of 7.8% in Q1 FY27, the Nifty 50 index remains volatile. Sumeet Bagadia, Executive Director at Choice Broking, believes that the bias on Dalal Street is weak.

The Nifty 50 index has formed a small bearish candlestick on its daily chart, indicating hesitation and selling pressure near resistance levels. The Relative Strength Index (RSI) stood at 38.37, showing weak momentum and a bearish bias. Bagadia noted that the RSI remains above the oversold zone.

In the derivatives segment, major Call Open Interest was concentrated around the 24,000-24,100 strikes, indicating resistance at higher levels. Significant Put Open Interest was seen around the 23,800-23,900 strikes, suggesting immediate support around current levels.

Bagadia recommended three stocks to buy: Tata Steel, Reliance Industries, and Bajaj Finance. He noted that Tata Steel is attempting to recover after a short-term consolidation phase. Reliance's share price is showing early signs of a bullish reversal as it attempts to break above a crucial descending trendline.

Bajaj Finance's share is currently in a short-term pullback, testing an important support zone around the 50-day EMA. A successful reversal from this area could strengthen the short-term bullish setup and signal renewed buying interest.