Market Reset: Calm Before the Next Move?

Market Reset Coming? What Last Week’s Rally Really Means for Monday

After a week of green candles and FII-driven optimism, investors head into Monday wondering: is this the start of a market reset or just a breather before volatility returns?

The Nifty 50 gained 1.28%, Sensex followed suit, and even global markets cheered—Nasdaq jumped 2.99%, Dow 1.64%, and FTSE 100 up 1.07%—on hopes of softer US-China trade tones and robust earnings. But beneath the surface, small caps cracked -1.09%, gold dropped 2%, and oil cooled to $61.83/barrel—raising questions about sector rotations and defensive positioning.

FPIs pumped $2,040 million into Indian equities, and falling crude plus rupee strength gave bulls a reason to charge. But with the market now at elevated levels, rate-sensitive sectors soaring, and earnings largely priced in—Monday could mark a moment of recalibration.

Is this rally sustainable, or is the smart money preparing for a reversal?

Let’s break it down.

Gap-Up Opening Expected: Global Cues Hint at a Market Reset

GIFT Nifty is trading 128 points higher at 24,532 — indicating a positive gap-up opening for Indian markets on Monday.

This bounce comes after a week of healthy consolidation and strong global momentum. US markets surged on Friday with Nasdaq jumping 2.99%, and falling crude oil prices are providing further support.

It looks like the market is ready for a fresh Market Reset, riding on foreign investor optimism and easing global tensions.

Nifty Technical Outlook

Market Reset in Sight?
Nifty’s recent momentum might just be setting the stage for a big move — but will it break out or fade? We’ve decoded all the key resistance zones, hidden support levels, and momentum signals in our latest technical blog.

👉 Don’t enter Monday blind. Read it now: Nifty Technical Outlook

Stocks in News: What Moved & Why

1. Millionaires are buying ₹2 Cr+ properties in Mumbai

Real estate in Mumbai is heating up — not because of mango sellers this time, but because millionaires are splurging on ₹2 crore-plus homes. A new report says the share of these high-ticket property deals has jumped significantly. This signals that HNIs are bullish on real assets despite high interest rates.

Impacted Stock: Keep an eye on Godrej Properties and Oberoi Realty. These companies are deep into premium housing in Mumbai, and growing demand from rich buyers is good news for their topline.

2. RBI fines five major banks, including ICICI, Axis, BoB

SEBI isn’t the only one cracking the whip. The RBI has imposed penalties on ICICI Bank, Axis Bank, and Bank of Baroda for compliance failures. It’s a reputational dent, not a financial one — the fines are small, but the message is big: shape up your internal controls.

Impacted Stock: ICICI Bank and Axis Bank might see short-term investor caution, especially from institutional players who care deeply about governance and compliance.

3. SEBI penalty upheld on Reliance for delay in Jio-Facebook deal news

The SAT has backed SEBI’s decision to slap a ₹30-lakh fine on Reliance Industries and two of its compliance officers for delaying disclosure of Facebook’s investment in Jio back in 2020. Even though the deal was historic, the delayed news hurts transparency.

Impacted Stock: This won’t shake Reliance Industries fundamentally, but it may keep the spotlight on governance issues — something long-term investors care about.

4. Tech Mahindra acquires Mahindra Racing UK

Tech Mahindra is going full throttle — literally. It’s acquiring 100% of Mahindra Racing UK for GBP 1.2 million. It’s a niche acquisition, but adds to TechM’s portfolio in motorsports tech and EV integration.

Impacted Stock: Tech Mahindra may not get a financial boost from this right away, but it signals diversification and alignment with EV/sustainable tech themes — a long-term brownie point.

5. JSW Steel escapes ₹702 Cr mining demand

Here’s one for the lawyers — JSW Steel just got relief from a ₹702-crore mining demand after a revisionary authority struck it down. Less money out = better margins ahead.

Impacted Stock: A positive trigger for JSW Steel, especially with global metal prices remaining volatile. The stock could see some strength as investors factor in this regulatory relief.

6. Tata Motors to raise ₹500 Cr via NCDs

Tata Motors is heading to the bond market to raise ₹500 crore via NCDs at a 7.08% coupon. The company hasn’t revealed why it needs the money, but typically such moves are for capex, refinancing, or working capital.

Impacted Stock: It’s neutral to slightly positive for Tata Motors — the low coupon means favorable funding, and there’s no equity dilution risk here.

7. Alembic Pharma gets FDA approval for generic Ticagrelor

Alembic Pharma just got USFDA final approval for generic Ticagrelor 90mg and tentative approval for 60mg — a heart medication used globally. This opens up export opportunities in the high-margin US generic market.

Impacted Stock: Alembic Pharma could see near-term momentum, as US approvals often boost both sentiment and export revenues.

8. Reliance Power arm signs ₹10,000 Cr solar+BESS PPA with SECI

Big move from Reliance NU Suntech — a 25-year Power Purchase Agreement with SECI to build an integrated solar plus battery energy storage system. ₹10,000 crore is no small commitment, and this deal locks in long-term revenue visibility.

Impacted Stock: Reliance Power may finally be turning a corner. The market could see this as a revival signal for a stock that’s been long-forgotten in investor circles.

9. SEBI eases norms for stock brokers in GIFT City

SEBI has made it easier for brokers to operate from GIFT City by allowing them to run activities via subsidiaries. It’s another step in building India’s answer to Dubai and Singapore in the finance world.

Impacted Stock: This benefits firms like IIFL Securities, Motilal Oswal, and Angel One that are looking to expand globally or tap international flows through GIFT-IFSC.

10. SBI to raise ₹25,000 Cr via QIP/FPO in FY25-26

India’s largest bank is planning to raise a massive ₹25,000 crore via QIP or FPO. While this strengthens capital, it may also mean some dilution for current shareholders.

Impacted Stock: SBI could see a muted reaction in the short term, especially if the fundraising happens during a weak market. But long-term, more capital means more firepower for lending growth.

11. GOCL exits IDL Explosives for ₹107 Cr

GOCL Corporation is cleaning house — selling its entire stake in IDL Explosives for ₹107 crore. It’s part of its asset-light push.

Impacted Stock: A positive for GOCL Corp, as the deal frees up capital and shows focus on core business restructuring.

12. NSE launches Nifty Waves Index for creative economy

The NSE just launched a new index called Nifty Waves to track India’s booming entertainment and creative economy. From film to OTT to gaming, the idea is to create a benchmark for investors interested in the space.

Impacted Stock: No direct bets yet, but companies like Zee, Nazara Tech, Tips Industries, and PVR INOX could gain attention as likely candidates for inclusion.

13. RBI panel says “no change” to forex market hours

A Reserve Bank panel has recommended keeping current forex market timings unchanged. No 24×7 action, at least not yet.

Impacted Stock: No real market-moving impact here, but large forex-sensitive companies like Infosys, TCS, and HDFC Bank remain in focus for currency trends.

Stock in Technical Screener: MIDHANI (Mishra Dhatu Nigam Ltd)

If stocks had a Tinder profile for momentum, MIDHANI just swiped right on a breakout.

This defence PSU stock has officially entered the “watch me now” zone. On the weekly chart, MIDHANI closed at ₹308.10, gaining a solid +5.79% and breaking above its 9-week EMA (₹270.93) — a sign that bulls are back in uniform.

What’s really turning heads is the RSI Bullish Divergence — a reliable signal that the stock may have finished its nap and is ready to jog (or sprint). Historically, MIDHANI has shown strong upward moves post such setups, and we might just be seeing a repeat performance.

Quick Technical Snapshot:

• Trend Reversal Alert: Higher low formed, EMA crossover confirmed.
• Volume Surge: This breakout came with muscle — volume is strong.
• Resistance Zones: ₹325–330 first, then ₹360 and ₹400.
• Support Levels: ₹270 is the lifeline, ₹245 the last stop for bulls.

Trade Setup

Entry	Target	Stop-Loss	Trailing SL	Risk:Reward
₹308	₹360–₹400	₹270	Move SL to ₹308 once ₹330 is crossed	1:2 to 1:3

Once MIDHANI crosses ₹330, consider locking in profits gradually and trail your stop-loss higher — because you never know when the missile becomes a moonshot.

📌 Verdict: Bullish on momentum. Chart’s clean, Market Reset, setup’s strong, and the stock’s looking mission-ready. Just manage your risk — this is defence, not a gamble.

Smallcap of the Day: JSL Industries Ltd – Tiny Titan of Transformers?

JSL Industries might not be a household name (yet), but it’s quietly powering homes, factories, and state grids — literally.

This ₹170 crore company started life back in 1966 as a Jyoti Ltd subsidiary. Fast forward to 2025, and it’s become one of the largest manufacturers of oil-immersed starters and a leading supplier of 66kV Current Transformers to Gujarat’s state grid (GETCO). That’s serious stuff — it’s not making toasters.

With a price tag of ₹1,447 per share, it may look expensive, but here’s why it deserves a spot on your radar.

Why It Stands Out

• Solid Fundamentals:
  • ROCE at 22.2%, ROE at 16.8% – that’s elite territory for a micro-cap.
  • Debt-to-equity of just 0.09? Practically debt-free.
• Consistent Growth:
  • EPS has grown at a 37.6% CAGR over 3 years – that’s no fluke.
  • 5-year average ROE of 10.2% shows long-term discipline.
• Valuation Looks Reasonable:
  • PE of 20.5 is well below industry PE of 47.6 — a rare thing in the electricals and equipment space.
  • EV/EBITDA at 15.2 — not cheap, but justifiable given its niche positioning and low float.

But Wait, There’s More

JSL isn’t just another motor maker. It builds LT Panels, Starters, Switchgear, and transformers used in critical grid-level and industrial applications. It’s also a go-to vendor for government utilities like GETCO — which provides a strong base of recurring orders.

Sure, it’s a small fish, but in a pond that’s only getting bigger thanks to India’s push for power infra upgrades and smart grids.

⚖️ Risk vs Reward

🔺 Positives	🔻 Risks
Niche product + trusted vendor	Low liquidity due to small float
Clean balance sheet	Low public awareness – not on many radars
Strategic exposure to power sector	Earnings can be lumpy in infra-heavy space

JSL Industries is one of those hidden gems — boring, reliable, under-owned. It’s quietly delivering double-digit returns while the rest of the market is watching shiny tech IPOs. With strong margins, steady growth, and India’s infra push on its side, this stock might just electrify portfolios over the long term.

Final Thought: Reset, Refocus, Reposition

This market reset isn’t just a dip—it’s a directional pause that separates impulse from insight.

Let’s decode what to do now:

• Stocks in News: Keep an eye on Reliance Industries, ICICI Bank, and JSW Steel — news-driven volatility can offer quick entry-exit trades, but only if volume supports the move.
• Technical Radar – MIDHANI: A strong base breakout after a long consolidation with volume uptick. Traders can track ₹440+ for momentum continuation, with ₹398 as stop.
• Smallcap Pick – JSL Industries: Fundamentally strong, low-debt engineering player with rising profitability. Ideal for long-term watchlists, especially if it retests ₹1,350–1,400 zones.

This market reset is your chance to restructure—not react.

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