This Week’s Market Setup: What Monday Traders Must Know

Market Setup for Monday opens with a wave of optimism. After a power-packed week where the Nifty 50 surged 4.2% and small caps delivered nearly 9% gains, all eyes now turn to Monday’s open.

The momentum is backed by more than just charts—April inflation eased below RBI’s 4% target, FIIs pumped in ₹5,392 crore, and global cues are flashing green. With US inflation cooling, Indian macros steady, and sectoral breadth turning positive across the board, the market setup for Monday points to continuation—if not acceleration—of the current rally.

But with indices near breakout zones, gold rallying, and oil inching higher, Monday could also be the day where bulls either confirm control or pause for breath. Either way, it’s a session worth tracking from the opening bell.

Market Setup for Monday: Nifty Holds Breakout, Bulls Eye 25,600

1. Breakout Confirmed, Support Established
Nifty closed last week firmly above the earlier resistance zone of 24,850–24,900. This level, which acted as a triple top in recent months, has now flipped into strong support. The candle for the week showed no lower wick—classic sign of aggressive buying and trend continuation.

2. Momentum in Full Swing
The index is cruising well above its 9-week EMA, which is sloping upward—a bullish structural sign. Plus, last week’s breakout came with higher volume, hinting at institutional follow-through.

3. What Lies Ahead?
The next resistance is visible in the 25,450–25,600 zone, close to the September 2024 highs. If this range is taken out on volume, we could see a march toward the all-time high near 26,266.

4. Risk Levels to Track
The breakout level at 24,850 now becomes your line of defense. A breakdown below this on a weekly basis could invalidate the bullish setup and open the door to a correction toward 24,200.

5. Strategy for the Week Ahead

Bias	Action Zone	Target	Stop Loss
Bullish	Buy on dips to 24,900–25,000	25,600–26,266	Just below 24,850
Cautious	Book profits near 25,450+	—	Trail SL tightly
Bearish (if reversal)	Only if closes below 24,850	24,200	NA

Final Take:

The market setup for Monday looks promising as long as Nifty stays above 24,850. Watch for strength early in the week and be tactical near 25,450. If bulls stay in charge, a fresh all-time high could be on the cards in the sessions ahead.

News & Impacted Stocks

Groww Acquires Fisdom for ₹1,280 Cr in All-Cash Deal

Fintech unicorn Groww is upping its game in wealth management. It’s set to acquire Fisdom — a player known for mutual funds, PMS, bonds, and tax tools — in a ₹1,280 crore all-cash deal. The target serves 1M+ clients via tie-ups with 15+ banks like PNB and Indian Bank.

What’s the plan? Strengthen product breadth and bank partnerships as Groww gears up for a stock market debut.

Stock Impact:
No direct stock impact (Groww is unlisted), but listed competitors like CAMS, 360 ONE WAM, and Angel One may see pressure from a stronger, more diversified rival entering their turf.

RBI Slaps Penalties on Deutsche Bank and Yes Bank

In a recent regulatory move, the Reserve Bank of India (RBI) has imposed monetary penalties on Deutsche Bank AG (India) and Yes Bank for failing to comply with specific banking norms.

• Deutsche Bank AG has been fined ₹50 lakh for not creating a central repository of large common exposures across banks. This is a critical lapse, considering such repositories help regulators monitor systemic risks in the banking system more effectively.
• Yes Bank has been penalized ₹29.60 lakh for non-compliance with RBI guidelines on the presentation and disclosure of financial statements, an essential part of maintaining transparency for shareholders and regulators.

📉 Stock Impacted

• Yes Bank (NSE: YESBANK): While the penalty amount is not materially large, repeated non-compliance may raise red flags for investors watching the bank’s governance track record. Short-term sentiment could weaken, especially if the broader market is under pressure.

Bharat Electronics Bags ₹572 Cr Orders

BEL has secured a healthy order book worth ₹572 crore for AI-driven naval systems, simulators, jammers, and communication gear. Defence remains red-hot this year, and BEL is staying in the fast lane.

Stock Impact:
Bullish for BEL (Bharat Electronics). The order inflow supports revenue visibility and strengthens its post-Operation Sindoor tailwinds. Stock already reacted positively and may continue upward momentum.

Lumax Auto to Acquire Full Stake in IAC India

Auto component maker Lumax Auto will buy the remaining 25% stake in IAC India for ₹221 crore. This move will make IAC a wholly-owned subsidiary, consolidating control and likely boosting operational synergies.

Stock Impact:
Positive for Lumax Auto Tech. Full ownership brings better margins, control over R&D, and strategic flexibility in India’s evolving auto landscape.

JSW Infrastructure: Singapore Govt Picks Up ₹531 Cr Stake

The Government of Singapore acquired 1.84 crore shares in JSW Infra via a ₹531 crore block deal. The entry of such a marquee investor is seen as a vote of confidence in India’s infra and logistics growth story.

Stock Impact:
Strong positive sentiment for JSW Infrastructure. The foreign institutional interest may drive further re-rating of the stock.

CreditAccess Grameen Swings to ₹47 Cr Profit

From red to green — the microfinance lender reported a ₹47.2 crore net profit in Q4, a reversal from a ₹99.5 crore loss in the previous quarter. The comeback is driven by lower provisioning and improved disbursements.

Stock Impact:
Optimistic for CreditAccess Grameen. If growth continues and asset quality holds, investor confidence could improve, especially in the NBFC microfinance segment.

Indian Railways Saves ₹170 Cr Using HOG Tech

Central Railway saved ₹170.7 crore using energy-efficient Head-On-Generation (HOG) systems. The Mumbai division alone contributed over ₹136 crore in savings, underlining the tech’s effectiveness in reducing power costs.

Stock Impact:
Indirect positive for railway-focused power players like BHEL, RVNL, and Titagarh Rail — firms enabling railway electrification and modernisation.

Dr Reddy’s Gets 2 FDA Observations for NY Plant

USFDA wrapped up an inspection of Dr. Reddy’s API plant in New York and issued two observations. No details yet, but these minor observations don’t appear alarming — still, markets typically stay cautious.

Stock Impact:
Dr Reddy’s might see short-term sideways action or minor jitters depending on clarity around the FDA’s concerns. Long-term investors may use dips as accumulation zones unless escalation follows.

Stock in Technical Radar: Wipro Ltd

Current Price: ₹254.30
Trend Context: First weekly close above 9-week EMA since Feb-March 2025 downtrend.

Price Action & Trend Structure
Wipro has just posted a solid bullish closing at ₹254.30, crossing its 9-week EMA (₹245.71) for the first time in months. This signals a potential trend reversal and suggests that bearish pressure has likely weakened.

It’s the first technical confirmation that the stock may have bottomed out from the prolonged downtrend since February. A sustained move above the current zone could invite stronger participation from swing traders and short-term investors.

Volume Confirmation
Weekly traded volume surged to ~59 million, clearly higher than the average of the last 3–4 weeks. The rise in volume alongside price suggests institutional interest returning—an encouraging sign for bullish continuation.

Resistance Zones Ahead
The next hurdle lies between ₹260–₹265, a zone where the stock previously broke down during February. This level now acts as a key resistance.
Above that, ₹275–₹280 becomes the next major supply zone, last tested in March.

A weekly close above ₹265 will invalidate the prior lower-high structure and open up the pathway toward ₹280–₹285 in the coming sessions.

Support to Watch
Immediate support now sits around ₹245, aligning with the 9-week EMA and the breakout retest zone. Any pullback toward ₹245–₹248 that holds could offer a buy-on-dips setup.
A breakdown below ₹240 would weaken the bullish thesis and signal a potential failed breakout.

Short-Term Outlook

The trend is mildly bullish with momentum picking up. However, the ₹260–₹265 zone remains a key technical test. A successful close above this resistance could confirm trend continuation.

Strategy Setup:

Action	Zone	Commentary
Buy on Breakout	Above ₹260	Entry only with strong closing volume
Buy on Dips	₹245–₹248	Safer entry, stop-loss below ₹240
Exit Zone	₹275–₹280	Ideal zone to book partial profits
Stop-Loss	₹240	Below EMA and recent breakout low

Conclusion:
Wipro is showing signs of revival, supported by volume and structure. A breakout above ₹260 could trigger a strong short-term move toward ₹275. Dips near ₹245 offer a good risk-reward trade setup, provided the stock continues to hold above the breakout zone.

Small Cap Stock of the Day: Taneja Aerospace & Aviation Ltd

CMP: ₹359
Market Cap: ₹915 Cr
Sector: Defence & Aerospace

Why It’s on Our Radar:
Taneja Aerospace isn’t just another aircraft component maker—it’s quietly built itself into a niche MRO (Maintenance, Repair & Overhaul) powerhouse with zero debt and an eye-popping operating margin of 63.6%. Yes, you read that right.

The Business Angle:
This company provides end-to-end solutions—from manufacturing aerospace parts to servicing military and commercial aircraft. It handles avionics retrofits, helicopter upgrades, and allied airfield services. In a market where India is pushing for defence indigenisation, Taneja sits in a sweet spot.

Financial Snapshot:

Metric	Value
PE Ratio	50.6
ROCE	17.4%
ROE	13.3%
NPM	36.6%
Debt-to-Equity	0.00
Cash Equivalents	₹15.3 Cr
Sales (FY25)	₹40.6 Cr

The high valuation (Market Cap to Sales of 22.5x) suggests this is not a hidden gem anymore—but investors are willing to pay a premium for quality and growth visibility.

Why It Matters Now:
With defence spending rising and more private players being roped in for strategic roles, smallcaps like Taneja could see contract tailwinds ahead. The fact that it serves both military and civil aviation gives it added runway.

Risk Radar:
Thin trading volumes, low inventory turnover, and a steep fall from its ₹710 highs mean this one’s still a high-beta, high-reward bet. Only for investors with risk appetite and a long-term horizon.

Final Thought: Navigating the Market Setup for Monday

As we step into a fresh week, the market setup for Monday looks broadly constructive. With Nifty sustaining above 25,000, sectoral participation widening, and global cues staying optimistic, the short-term trend remains tilted toward the bulls. However, we’re also entering a zone where profit-booking and resistance clusters (like 25,450–25,600) could test trader conviction.

Mid and small caps are showing leadership again, while thematic plays in defence, real estate, and fintech are drawing smart money. Keep your radar sharp for news-driven opportunities—and stay agile if the global tide shifts.

📌 Pro Tip: Use this week’s momentum to ride strength, but keep trailing stop-losses tight. A good breakout is only as valuable as the discipline that protects it.

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