Stock market today: India’s stock indices remained unchanged on Thursday after gaining 1.5% over the previous three sessions, as investors awaited election results from the important northern state of Bihar, which could influence government policy.
The Sensex fell by 205.08 points to 84,261.43 in early trading, while the Nifty 50 decreased by 61.15 points to 25,814.65.
The cooling of domestic inflation and alleviating trade concerns have contributed to a positive market outlook, while the resolution of the U.S. government shutdown has directed global investors to focus on postponed U.S. economic data to assess the interest rate forecast.
Nevertheless, experts believe that domestic stocks may experience only slight fluctuations today, consolidating around current levels in anticipation of the Bihar election results on Friday.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The Indian equity markets exhibited a robust trading session, buoyed by reactions to exit polls and renewed trade discussions, which contributed to an optimistic outlook. The benchmark index opened significantly higher, with a gap-up, and maintained its upward trajectory throughout the day. Consequently, the trading day concluded favourably, with the Nifty 50 index nearing the 25,900 zone, reflecting a 0.70 percent gain.
The substantial traction observed across various sectors, predominantly favoring bullish sentiment, indicates an overall positive market environment and has instigated a renewed momentum. From a technical standpoint, a positive crossover in the RSI on the daily chart suggests the potential continuation of the primary trend following a period of consolidation.
On the levels front, the bullish gap placed around 25,780-25,715 is expected to provide support against potential near-term declines. This is further reinforced by the critical support zone of 25,600-25,500. Conversely, the intermediate resistance is observed around the psychological level of 26,000. Should this resistance be surpassed, the benchmark is likely to approach the lifetime highs in the forthcoming sessions. Overall, the market exhibits a strong bullish sentiment, and any declines toward the mentioned support areas are likely to augur well for the bulls on D-Street.
Going forward, we remain sanguine with our market outlook and maintain a ‘buying on dips’ strategy. Concurrently, the increased participation and breakout observed in the Midcap index are expected to generate broader opportunities for the traders’ fraternity, making it essential to assess market momentum. Furthermore, developments in trade negotiations are likely to influence our markets, thereby requiring vigilant monitoring.
Stocks To Buy on Thursday- Osho Krishan
On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks – Berger Paints India Ltd, and Hyundai Motor India Ltd.
Berger Paints India Ltd
Berger Paints share price has demonstrated a significant resurgence following an extended period of consolidation on the daily chart. The increase in trading volumes, along with favorable technical indicators, supports this recent upward trajectory. The stock’s movement above the cluster of EMAs and the 200-day SMA enhances its bullish outlook. Additionally, the RSI has indicated a positive crossover as the stock has surpassed the 20-day EMA. From a risk-reward perspective, the stock is currently positioned attractively for potential investors.
Hence, we recommend a BUY in Berger Paints around ₹550-540 with a Stop Loss of ₹520 and a Target of ₹600.
Hyundai Motor India Ltd
Hyundai Motor India share price has undergone a notable decline from its peak value of 2890 and is presently exhibiting some degree of stability at a lower range. The analysis of the daily chart indicates buying momentum near the 100-DEMA, while the 14-period RSI implies an initial indication of a potential counter-trend. Furthermore, a positive crossover has been observed between the MACD and its signal line, which contributes to a bullish outlook. From a risk-reward perspective, the current positioning of the stock is favorable, suggesting that it is poised to gain bullish traction in the near term.
Hence, we recommend a BUY in Hyundai Motor India around 2,380-2,360 with a Stop Loss of 2,265 and a Target of 2,550-2,590.
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.
