Market Update: Nifty and Bank Nifty Analysis
Friday’s market session began with a gap-down opening at 23,277 (-68.50 points). The index subsequently declined 180 points from the opening level to 23,100, but rebounded to close at 23,203.10. while the BSE Sensex closed at 76,619.33 down by -0.55%.
Nifty CPSE index, Nifty PSE Index and Nifty Realty sectors outperformed the market and closed in green.
The top performers in Nifty 50 stocks were Reliance(+2.83%), BPCL (+2.51%), Hindalco (+2.39%) and Coal India (+2.32%).
On the other hand, the top losers in the market were Infosys (-5.75%), Axis Bank (-4.43%) and Shriram Finance (-3.71%).
View Full Image
Also Read: Has the market finally bottomed? Time to pounce?
Indian Stock Market’s Outlook:
The Nifty opened with a gap-down and experienced a volatile trading session, ultimately closing in the red, down approximately 109 points. The counter-trend rally observed in the last three sessions ended at the 40-hour moving average (23390), resuming its downward trend.
Key Levels to Watch:
Downside Targets: Nifty is expected to test the psychological level of 23000, with potential to slip further to 22670.
Consolidation Zone: If selling pressure weakens, the index may consolidate between 23100-23300.
Technical Highlights:
Daily Chart: Nifty is trading below the 20-day (23591) and 40-day (23849) exponential moving averages. The momentum indicator shows a bearish crossover.
Hourly Chart: Nifty is trading below the 20-hour (23246) and 40-hour (23301) moving averages, with a negative momentum crossover.
Market Breadth: Despite the decline, the market breadth was slightly positive, with 1465 advances and 1351 declines on the NSE.
The overall trend suggests a bearish bias with the possibility of further declines unless the index finds support or enters a consolidation phase.
Short Term Trend
View Full Image
Also Read: Mint Primer | Stormy Monday: What to expect, going ahead
Three stocks to buy, recommended by Ankush Bajaj:
Escorts: Buy at ₹3,600; target: ₹3,675-3,705; stop loss: ₹3,535.
The stock has maintained strong momentum over the past five days and managed to close near the key level of ₹3,590. If the stock sustains above 3620, a significant rally on the upside can be expected.
ICICI Lombard General Insurance: Buy at ₹1,948; target ₹2,000-2,045;stop loss: ₹1,912
On the hourly chart, the stock has given a breakout from an inverse Head & Shoulders pattern. Bullish momentum is expected to continue if the price sustains above the 1955-1960 zone, potentially leading to a strong upward rally.
SBI Life: Buy at ₹1,540.50; target: ₹1,648; stop loss: ₹1,488.
The stock has shown strong momentum on the hourly chart, with both RSI and CCI indicating positive trends. A significant upward rally is expected in the coming days.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
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 guarantee 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.
Also read | The market in 2025 will be a story of two halves – challenges followed by opportunities, says Ashish Gupta of Axis MF
