Stock Market Overview: The Nifty-50 Index experienced a slight consolidation, ending the week 0.2% lower compared to the previous week. Among various sectors, Industrials, Healthcare, and Auto emerged as the top performers. Conversely, the Metal and FMCG sectors underperformed. The Bank Nifty closed the week at 51,172.30, also reflecting a marginal decline from the prior week.
Market Outlook for Monday
The Nifty index is poised to exhibit a negative bias unless it decisively surpasses the 25,300 mark, which aligns with its 20-day exponential moving average (DEMA). According to Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, immediate support is expected at 24,700, while significant support rests at 24,400, representing the 100-day exponential moving average. Traders should maintain a cautious approach.
Nifty Bank Analysis
The Nifty Bank index is anticipated to find essential near-term support at the 50,000 level. On the upside, a decisive breach above the 51,800 level is crucial for establishing bullish momentum, as outlined by Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher. Investors should closely monitor these levels to navigate the upcoming trading sessions.
Global Market Influences Amidst Geopolitical Tensions
Despite receiving mixed signals from global markets, U.S. stocks have shown resilience and a continual upward trend. However, this optimism has not yet translated to Indian markets. Analysts suggest that metal stocks may benefit from anticipated stimulus measures in China, which could bolster demand and support price levels.
Corporate Earnings on the Horizon
Upcoming corporate earnings reports from major companies such as Reliance, HDFC Life, Axis Bank, and Wipro are expected to influence market direction. Following a sharp decline in the previous week, the Nifty has hovered in a consolidation phase, largely due to persistent selling from Foreign Institutional Investors (FIIs) and a lack of major market triggers. Market expectations are that a blend of international cues and the earnings season will dictate future movements, according to Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd.
Stock Recommendations for Investors
Sumeet Bagadia, Executive Director at Choice Broking, along with Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, have provided notable stock picks to consider in the current market environment.
Sumeet Bagadia’s Stock Picks
- CG Power and Industrial Solutions Ltd: Bagadia suggests purchasing CG Power at ₹858.15, with a stop loss at ₹828 and a target price of ₹915. The stock is demonstrating a robust uptrend, having broken out of a consolidation phase, signaling a continuation of bullish momentum. A closure above ₹870 could facilitate progress toward the target price.
- Mankind Pharma Ltd: Another recommendation from Bagadia is to acquire Mankind Pharma at ₹2792.55. He suggests a stop loss at ₹2690 with a target of ₹2950. The stock has surpassed a critical resistance zone, which, combined with increasing trading volume, indicates sustained bullish sentiment.
Ganesh Dongre’s Stock Recommendations
- Gail India Ltd: Dongre advocates buying Gail India at ₹230, setting a stop loss at ₹223, with a target price of ₹242. A recent bullish reversal pattern suggests potential upward movement, making this a compelling buying opportunity.
- Piramal Enterprises Ltd: The recommendation is to purchase Piramal Enterprises at ₹1080, with a stop loss at ₹1050 and a target of ₹1140. This stock has also showcased a bullish reversal pattern that supports the case for a price increase towards the targeted level.
- Marico Ltd: Lastly, Dongre recommends buying Marico at ₹685, with a stop loss at ₹674 and a target price of ₹710. The stock’s trend analysis indicates potential for upward movement, presenting a favorable buying opportunity at the current market price.
Disclaimer: The views and recommendations expressed in this article are those of the individual analysts or broking firms and do not necessarily reflect the opinions of this publication. Investors are encouraged to seek advice from certified financial consultants before making any investment decisions.
