Stock market today: On Thursday, the main domestic stock indices, Nifty 50 and Sensex, experienced gains, influenced by other Asian markets, following a decrease in underlying US inflation for December, which increased the chances of additional rate cuts by the Federal Reserve.
As of 13:42 IST, the Nifty 50 rose by 0.47% to reach 23,323.10 points, while the Sensex climbed 0.42% to 77,039.68.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that US macroeconomic indicators suggest that as Trump’s inauguration approaches, the enthusiasm around his policies has peaked. The drop in US bond yields and the dollar index reflects this shift.
This reduction in the dollar index and bond yields has been aided by lower-than-anticipated CPI inflation in the US, reigniting expectations for more rate cuts by the Federal Reserve this year. Additionally, hopes for a resolution to the Gaza conflict provide significant relief. This positive global environment is favorable for the market.
Market Views – Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities
Nifty 50
Nifty 50 is in to continuation of a down trend. At present, Nifty 50 is placed below all key moving averages. Last week, Index broke below the symmetrical triangle pattern on the daily charts, which indicates continuation of primary down trend. Index has spent enough sessions below its long term moving average of 200 days EMA, which indicates confirmation of a positional down trend. Nifty 50 has fallen 12% from the peak and it might lead to some recovery in the coming days towards resistance zone of 23,500-23,600. Traders should utilize the pullbacks and resistance levels to exit trading longs and initiate fresh shorts for the downside target of 22,670-22,800 in Nifty 50.
Bank Nifty
From the recent swing low of 47,898, Bank Nifty index has recovered more than 1,500 points towards 49,428. Last week, Bank Nifty index broke down below bearish head and shoulder pattern, when it breached the neckline support of 49,700. This bearish pattern is still intact on the positional charts. The recent recovery seems more like a pullback in the overall down trend. Previous support of 49,600-49,800 is expected to act as a resistance for the Index. Traders should utilize the current pullback in the index to lighten the long commitments. Index is placed below 20,50, 100 and 200 days EMA, which indicates positional down trend. Medium term support for the index is seen near 46,000.
Technical Picks: Stocks to buy in the near-term
Buy GE Shipping ( ₹966): | Targets ₹925 | Stop-loss ₹1,030
Stocks have come out from the oversold zone on the daily chart. RSI has formed a positive divergence, which indicates the probable trend reversal. Stock price has surpassed near-term moving average resistance.
Buy Equitas Small Finance Bank Ltd (72.50): | Targets ₹78 |Stop-loss ₹69
Stock price has surpassed the previous swing high resistance with higher volumes. Stock is placed above key moving averages, indicating bullish trend. Indicators and oscillators have turned bullish on the daily charts.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
