Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, continued to gain in December, with both indices opening higher on Tuesday. The Nifty 50 opened at 24,367.50 points, up 91.45 points or 0.38%. Similarly, the Sensex opened at 80,529.20 points, increasing by 281.12 points or 0.35%.

Experts observed that the Indian stock markets have disregarded the GDP numbers. Given that they are in an oversold territory, there is potential for further increases and a rally leading up to the budget announcement in February.

Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized the market's underlying resilience, as demonstrated by its ability to recover. The market is currently focusing not on the slowdown in GDP growth, but rather on the anticipated policy response to this slowdown.

The rebound of banking stocks yesterday suggests that the market expects a cut in the Cash Reserve Ratio (CRR) on Friday, which would enhance bank profitability. The net Foreign Institutional Investment (FII) sell figure of only ₹238 crores yesterday is somewhat misleading, as it masks several large bulk deals. Additionally, news of proposed increases in GST on products like tobacco could adversely affect stocks such as ITC, while tax reductions on insurance premiums could positively impact insurance stocks.

Market Review and Outlook - Sachin Gupta, Senior Research Analyst at 5paisa

The Nifty 50 index opened on a muted note, weighed down by weak GDP data, but managed a strong recovery to close at 24,276.05, gaining 0.5%. This rebound was driven by optimism around potential policy measures from the RBI in its upcoming meeting. Key sectors like Auto, Media, and Metal saw gains, with Realty stocks leading the charge. Broader market indices outperformed, posting gains of over 1%.

Among top-performing stocks were UltraTech Cement, Apollo Hospitals, Grasim Industries, and Shriram Finance, while HDFC Life, Cipla, NTPC, SBI Life Insurance, and L&T were the major laggards.

On the technical front, the Nifty 50 charted a green candle, confirming a bullish harami pattern. The Relative Strength Index (RSI) broke out of its consolidation phase, signaling bullish momentum, and the index maintained its position above the 21-day exponential moving average (EMA), indicating sustained strength.

Looking ahead, 24,350 remains a critical resistance level. A decisive breakout above this mark could trigger a rally towards 24,550 and 24,700. On the downside, immediate support is expected at 24,100 and 24,000.

Shares to buy or sell today on Tuesday- Sachin Gupta

On shares to buy or sell on Tuesday, Sachin Gupta recommends Natco Pharma Ltd, and Sunflag Iron and Steel Co Ltd.

Natco Pharma Ltd

The stock has formed an Inverse Head and Shoulders pattern on the daily timeframe, a bullish reversal pattern indicating strong buying momentum. Additionally, the price has sustained above the 50-day moving average (50-DMA), supported by rising volume activity, signaling a positive short-term outlook. The momentum indicator RSI has also shown a positive crossover, moving above the 55 level, further reinforcing the bullish sentiment.

Based on these technical factors, we recommend a buying opportunity in Natco Pharma around ₹1,410– ₹1,400, with a stop-loss at ₹1,330 and potential upside targets of ₹1,500 and ₹1,560.

Sunflag Iron and Steel Co Ltd

The stock, after taking support at the 100-week EMA around the 190 level, has reversed its trend and is now trading above the 200 mark with a positive bias. On the daily chart, it has formed a Rounding Bottom pattern, which is likely to confirm further bullishness if the price sustains above 219.

Additionally, the stock has maintained its position above the 50-day and 100-day EMAs, signaling short-term bullish strength. Indicators such as MACD and RSI (14) also reinforce the positive momentum, with a bullish crossover visible on the daily chart.

Traders are recommended to adopt a buy strategy above 219, for the potential upside targets of ₹231 and ₹240, with a stop-loss at ₹207 to manage risk.