Stock Market Today: Q2 Results Expected; Experts Recommend Six Stocks to Buy or Sell on Friday, October 25

The Indian stock market is currently facing a challenging period, marked by a fourth consecutive day of losses for the Nifty 50 index. This downturn is largely attributed to disappointing earnings reports and ongoing foreign capital outflows. As of October 25, 2024, the Nifty 50 closed at 24,399.40, down 36.10 points (0.15%), while the BSE Sensex settled at 80,065.16 after a slight decline of 16.82 points (0.02%).

Market Analysis

The Nifty has lost approximately 7.15% since reaching a record high on September 27. This decline reflects growing investor concerns as foreign institutional investors (FIIs) have net sold Indian shares for eighteen consecutive sessions, redirecting funds to China due to its stimulus measures and relatively cheaper stock valuations.

Nifty and Sensex Performance

The Nifty 50 index has experienced a decline of about two percent this week alone, highlighting the market’s volatility amid disappointing earnings reports from major companies. The ongoing trend indicates that investors are cautious, particularly with the FMCG sector taking a hit after Hindustan Unilever (HUL) and Nestlé reported unsatisfactory results.Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, noted that the Nifty has been consolidating around the 24,400-24,500 range without significant triggers for movement. He anticipates that this range-bound movement will continue as the earnings season unfolds, potentially leading to sectoral rotations.Hrishikesh Yedve from Asit C. Mehta Investment Intermediates Ltd provided a more optimistic view regarding the Bank Nifty, which opened positively and maintained bullish momentum throughout the session, closing at 51,531.

Sector Analysis

Despite the overall market downturn, certain sectors displayed resilience. The banking and financial sectors saw some buying interest, while the Fast-Moving Consumer Goods (FMCG) index fell over two percent due to disappointing results from major companies like Hindustan Unilever (HUL) and Nestlé.

Expert Opinions on Market Trends

Rupak De, Senior Technical Analyst at LKP Securities, commented on the technical outlook for Nifty today, stating that it traded in a range-bound manner before closing with a marginal loss. He indicated that sentiment remains weak as no follow-up buying was visible despite a bullish reversal pattern forming after significant corrections.

Stock Recommendations for Investors

In light of the current market conditions, analysts have identified six stocks as potential buys:

Recommended Stocks

1. United Breweries
   • Buy Range: ₹1,970-1,978
   • Target Price: ₹1,998-2,050+
   • Stoploss: ₹1,948
2. Reliance Industries
   • Buy Range: ₹2,675-2,680
   • Target Price: ₹2,698-2,725+
   • Stoploss: ₹2,650
3. Paytm
   • Buy Range: ₹755-765
   • Target Price: ₹785-810
   • Stoploss: ₹728
4. Emcure Pharmaceuticals
   • Buy at: ₹1,390
   • Target Price: ₹1,450
   • Stoploss: ₹1,365
5. Ashok Leyland
   • Buy at: ₹217
   • Target Price: ₹223
   • Stoploss: ₹212
6. State Bank of India (SBI)
   • Buy at: ₹795
   • Target Price: ₹810
   • Stoploss: ₹780

Conclusion and Outlook

As investors navigate this volatile market landscape, staying informed about sector performances and stock recommendations is crucial. The ongoing earnings season will likely play a pivotal role in shaping market sentiment in the coming days.Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies and do not reflect the views of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions as market conditions can change rapidly and individual circumstances may vary.