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India’s military strikes against Pakistan on Wednesday caused some early panic in the market, but it soon recovered and closed in the green. Uncertainty persists, however, as investors are left wondering what comes next.

After some early nerves, the Indian stock market shed the anxiety that was felt across the country on Wednesday, indicating that the trends remain bullish. At the end of the session the Sensex was up 106 points or 0.13% at 80,747. The Nifty gained 34.80 points or 0.14% to touch 24,414.40.

The rupee weakened, finishing the day at 84.84 per US dollar—a 0.47% decline from its previous close of 84.49. The yield on 10-year government bonds dropped by 1 basis point, from 6.351% 6.338%.

From the daily charts we can conclude that we are still in a “buy on dips and sell on rallies" market. Going into today, we are on uncertain footing and may encounter challenges around 24,500-24,600. With lower levels continuing to provide meaningful support, one can expect them to come into play again. We can abandon the buy-on-dips strategy until we get a close above 26,000. Also, open interest data now shows that call writing around 24,500 levels continues to hold sway while 24,300 is showing signs of holding back the bearishness.

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The range is getting tighter and the readings from the option data suggests PCR has moved to 0.85, highlighting that the market is seeing a selloff at every rise. As we mentioned, the combination of global tariff threats, cautious investor sentiment and domestic economic challenges contributed to the sharp market decline and volatility in the rupee.

The market seems unable to find enough strength to continue its upward march. With the Nifty continuing to hold around 24,300, we can expect momentum to rise as long as this level is not violated. Steady buying on dips has once again given people a reason to hold on to bullish sentiment for now. With no clarity on the future course of action we should be looking at participating with a neutral bias.

Trends remain two-phased and require us to balance either side. The situation demands a pragmatic approach.

Results season is underway, but with macro factors driving up volatility, we need to see how we can navigate the current trends. While the market continues to offer umpteen opportunities, sector rotation will be at work. Hence, we have selected candidates that are seeing steady action from both sides until new signals to the contrary emerge.

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Sell below ₹1,280 and rallies to ₹1,310, stop ₹1,330, target ₹1,200-1,150

Buy at CMP and dips to ₹1,205, stop ₹1,190, target ₹1,325-1,375

Buy on dips to ₹995, stop ₹970, target ₹1,100-1,145

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Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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