Market trends have reset as the recent rally failed to find sustained momentum. Investors remain cautious, awaiting a clear direction from TCS's upcoming earnings while persistent geopolitical conflict continues to cloud the outlook. This recurring failure to establish a stable trend, coupled with the lack of clarity on the war, suggests the current volatility will persist.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
KAJARIACER (current price 1094.40)
Buy above ₹1100, stop ₹1050, target ₹1225 (multiday)
- Why it’s recommended: A double bottom pattern formed since the start of 2026 has sparked fresh bullish momentum. As trends develop, the recent surge above the 155 level suggests prices could climb further. This momentum is well-supported by rising volumes, signaling a clear opportunity to go long.
- Key metrics:
- P/E: 251.66
- 52-week high: ₹182.70
- Volume: 16.04M
- Technical analysis: Support at ₹920, resistance at ₹1300
- Risk factors: Market demand, cost volatility, and intense competition, despite maintaining a strong balance sheet.
- Buy : above ₹1100
- Stop loss: ₹1050
- Target price: ₹1225 (2 months)
BHEL (current price: ₹277.20)
Buy above ₹278, stop ₹269, target ₹297 (multiday)
- Why it’s recommended: After consolidating throughout Q1 2026, the stock is now breaking above the Ichimoku cloud, creating a bullish Kumo twist. With a steady hold near the 251 level following a Kumo cross, the stock is well-positioned for upside as the market rebounds. A rising Directional Index further supports initiating a long position here to capitalize on a push toward higher levels. Go long now.
- Key metrics:
- P/E: 120.71
- 52-week high: ₹305.85
- Volume: 31.64M
- Technical analysis: Support at ₹260, resistance at ₹325
- Risk factors: Market volatility, regulatory changes, and intense competition in the digital brokerage space.
- Buy : above ₹278
- Stop loss: ₹269
- Target price: ₹310 (2 Months)
KSB (current price: ₹860.40)
Buy above ₹865, stop ₹820, target ₹965 (multiday)
- Why it’s recommended: Analysis of the ADX and DI indicators supports this upward trajectory, while a long-bodied candle highlights the potential for further gains as bullish momentum builds. With the RSI showing a positive charge and recent resistances being overcome, conditions are favorable to initiate a long position for a push toward higher levels. Go long now.
- Key metrics:
- P/E: 56.61
- 52-week high: ₹917.90
- Volume: 220.87K
- Technical analysis: Support at ₹800, resistance at ₹1025
- Risk factors: Vulnerable to price fluctuations in ferrous and non-ferrous metals.
- Buy: above ₹865
- Stop loss: ₹820
- Target price: ₹965 (2 Months)
How the stock market performed on Thursday
Indian equity markets traded lower on April 9, 2026, reflecting cautious investor sentiment amid global uncertainties. By 2:40 pm, the Sensex had dropped 1,171.65 points, or 1.51 percent, to 76,391.25, while the Nifty declined 305.20 points, or 1.27 percent, to 23,692.15. Market breadth remained weak, with eleven of the sixteen major sectoral indices trading in negative territory. Financial stocks retreated around 1 percent after a strong rally of 5.5 percent in the previous session, contributing to the overall decline.
In the broader market, performance was mixed, as the Nifty Smallcap100 index edged up 0.3 percent while the Nifty Midcap100 index remained largely unchanged. Among key stocks, HDFC Bank slipped 1.8 percent and ICICI Bank fell 1.4 percent. On the other hand, Honasa Consumer rose about 4 percent following a robust quarterly update. Investor sentiment was also weighed down by geopolitical tensions after US President Donald Trump reiterated that American forces would stay in and around Iran until a “real agreement” is achieved.
Outlook for trading
Markets fell short of expectations once again, as Thursday's downward move disrupted the broader outlook. While a recovery is being attempted, recent losses have rattled sentiment, and escalating geopolitical tensions continue to cloud the future. However, as earnings season begins, the market may better absorb these shocks.
Intraday Nifty charts reveal a negative divergence that could trigger a pullback, potentially forcing the index lower to fill the existing gap. This significant gap is causing hesitation and stalling trends. As we approach the final trading day of the week, the inability to sustain earlier gains has caught the market off guard.
Caution is advised despite a gradual bullish revival. With earnings season underway, expect steady selling pressure at higher levels. While higher-timeframe support at 22,500 remains intact, the strategy has shifted to "buying the dips and selling on rallies." Overall sentiment remains positive, supporting a mix of momentum investing and active trading.
While primary supports are currently distant, I am closely watching the 23,600 level to see if the index can hold. The charts clearly indicate that a significant amount of consolidation is still required before the prevailing trends can truly revive.
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.