Indian markets rebound on IT strength; 8 stocks to buy as tariff concerns ease

The Indian stock market found its footing this week after several sessions of decline, with information technology and banking shares leading the recovery. The rebound arrived as traders absorbed ongoing concerns about U.S. tariff threats—including potential secondary duties tied to trade with Russia and Iran—but the market's underlying strength in domestic financials proved resilient enough to weather the uncertainty.

The lift came primarily from heavyweight IT stocks that delivered better-than-expected quarterly earnings. These gains helped absorb the tariff-related headwinds that have weighed on sentiment. Domestic institutional investors continued to funnel money into the market, providing a stabilizing force even as foreign portfolio investors pulled back modestly. Export-oriented sectors remain cautious, but the broader economic picture—steady domestic consumption, growing services revenue, and diversification across trading partners—continues to support the longer-term outlook.

Technically, the Nifty 50 index sits at a critical juncture. The index has found support in the 25,500 to 25,450 band, which analysts expect will hold if weakness returns next week. Overhead resistance sits in the 25,875 to 25,900 range, where the 50-day moving average also converges. Without a decisive break above that ceiling, the index is likely to trade sideways, consolidating rather than making aggressive moves in either direction. The Bank Nifty, meanwhile, has shown more decisive strength. It crossed the psychologically important 60,000 level and is now trading comfortably above all its major moving averages. The index has support at its 21-day moving average near 59,480, with a secondary support zone at 59,200 to 59,190. Analysts see room for the Bank Nifty to reach fresh record highs, with near-term upside potential toward 60,500.

Commodities have also been consolidating after recent moves. Silver on the COMEX has pulled back from above $93 to trade around $87 to $88 after forming what technicians call a hanging man candle—a pattern suggesting temporary exhaustion rather than a trend reversal. As long as silver holds above $82 to $83, the broader bullish structure remains intact, with a breakout above $92 potentially reviving momentum toward $95 to $100. Gold on the COMEX is consolidating within a $4,530 to $4,610 range after hitting record highs. The $4,500 level, which was a breakout zone, has now become a strong support area. A sustained move above $4,650 could open the path toward $4,800 to $5,000.

The potential for new U.S. tariffs on NATO countries, including Denmark over Greenland, has raised questions about spillover effects on Indian markets. Some sectors—pharmaceuticals, textiles, gems and jewellery, steel and metals, automobiles, solar equipment, and leather—could face headwinds if tariffs escalate into a broader trade war. However, some market strategists see a silver lining. If Trump's tariff threats push the European Union toward trade negotiations, it could accelerate the finalization of a free trade agreement between India and the EU, which is already in its final stages. Any market volatility triggered by tariff announcements on Monday could prove short-lived, these analysts argue, as investors refocus on strong third-quarter results from major Indian banks including HDFC Bank, ICICI Bank, RBL Bank, Yes Bank, and Punjab and Sind Bank.

With this backdrop, three technical analysts have identified eight stocks they believe offer opportunity for intraday traders. AU Small Finance Bank has broken above the psychological ₹1,000 level on high volume, signaling renewed buying interest and trend strength; analysts recommend buying at ₹1,025 with a target of ₹1,100 and a stop loss at ₹990. LTIMindtree has broken above its consolidation range near ₹6,200 to ₹6,250 on strong bullish candles and rising volume, suggesting fresh accumulation; the recommendation is to buy at ₹6,308 targeting ₹6,750 with a stop loss at ₹6,100. IEX, Cholamandalam Investment and Finance, and Bharti Airtel are all exhibiting sustained bullish patterns with targets of ₹152, ₹1,750, and ₹2,150 respectively. HCL Technologies has revived from near its 50-day moving average at ₹1,610 and is showing a trendline breakout above ₹1,680, with the relative strength index rising and suggesting further upside. Coforge has stabilized after a correction and moved past its 200-period moving average at ₹1,720, with a positive daily candle formation indicating further upward movement ahead. Mishra Dhatu has been consolidating while maintaining support near its 50-day moving average at ₹341, with strong volume participation and a well-positioned relative strength index suggesting a continuation of gains.

The market's near-term direction will likely hinge on how tariff developments unfold and whether the strong earnings momentum from the banking sector can sustain the recovery. For now, the technical structure suggests that while volatility may persist, the underlying support levels should provide a floor for further declines.