In today’s stock market news, early trading on Thursday saw the Nifty 50 and Sensex, the prominent domestic benchmark indices, opening lower as concerns mounted regarding escalating tensions in the Middle East. The market also faced added pressure following new regulations from the Securities and Exchange Board of India (SEBI) regarding Futures and Options (F&O) trading.
As the session commenced, the Nifty 50 index opened at 25,452.85, reflecting a significant drop of 1.33% or 344 points. Similarly, the Sensex began trading at 83,002.09 points, marking a decline of 1,264.20 points or 1.50%. These movements underscore a prevailing sense of uncertainty among investors.
During the early part of the trading session, it was observed that 12 out of 13 major sectoral indices recorded losses, with the real estate and automotive sectors taking the hardest hits.
Analysts have pointed to a broader shift in global markets, primarily driven by the recent announcements of interest rate cuts by the Federal Reserve, mounting geopolitical uncertainties, and a trend of foreign investors reallocating their funds from Indian markets to other regions, such as China. This confluence of factors is intensifying the selling pressure on local stocks.
Nifty 50 Market Outlook
Insights by Osho Krishan, Senior Analyst, Technical & Derivatives, Angel One
The Nifty 50 has been navigating through a mixed trading environment, recently dipping slightly below the 25,800 mark. Although there was an initial rally, key indices exhibited limited volatility, implying a cautious sentiment among traders as they approach the mid-week holiday. This trading session resulted in a doji pattern on the daily chart, which typically signals uncertainty. The index is expected to find critical support in the range of 25,600 to 25,500, corresponding to the 20-day Exponential Moving Average (EMA). On the upside, the resistance levels at 26,000 to 26,150 remain pivotal zones for potential recovery.
Traders are advised to reduce their long positions during any potential market rebounds and exercise caution when engaging in aggressive buying unless clear signs of market strength emerge. It is essential to remain vigilant and closely track global dynamics, as they significantly influence market trends.
Recommended Stocks to Buy
On this trading day, analyst Osho Krishan has identified two stocks that investors may consider for their portfolios:
- Coal India Ltd
- Exide Industries Ltd
Coal India Ltd
Coal India has experienced a significant correction from its peak of ₹544 to the 100-day EMA on the daily chart. In recent trading sessions, it has shown signs of a consolidation breakout with increasing momentum, surpassing all major EMAs on the daily timeframe chart. Additionally, the MACD indicator has demonstrated a positive crossover from the lower zone, suggesting a potential bullish reversal.
Therefore, it is recommended to BUY Coal India in the price range of ₹502-500, with a stop loss set at ₹484 and a target price of ₹528.
Exide Industries Ltd
Exide Industries has shown robust upward momentum in recent trading sessions, surpassing all key EMAs on the daily chart. The notable increase in trading volume signifies a potential reversal in the stock’s trend. The breakout from a sloping trendline, along with strong support from clustered EMAs, provides a cushion against any corrections. From a technical viewpoint, various indicators point towards a continuation of this upward movement.
As such, it is advised to BUY Exide Industries around ₹505-500, maintaining a stop loss at ₹480, with an anticipated target of ₹545.
Disclaimer: The insights and recommendations provided are those of individual analysts and do not reflect the views of the publication. Investors are encouraged to consult with certified financial professionals before making investment decisions.
