Stock Market Overview: The Nifty 50 Index continued on its corrective trajectory, concluding a volatile trading session on Wednesday at 24,981.95, reflecting a decrease of 0.12%. Similarly, the S&P BSE Sensex dropped by 0.21% to close at 81,467.10. Sectoral performance was varied; while the realty and pharmaceutical sectors made gains, the FMCG and energy sectors experienced declines. The Bank Nifty did show some intraday gains following the Reserve Bank of India’s Monetary Policy Committee (MPC) outcomes, but ultimately finished 0.03% lower at 51,007.00. In a notable turn, broader indices outperformed significantly, with gains exceeding 1% in some cases.
Trading Outlook for Thursday
Following the lower close of the Nifty, which erased previous day gains, it appears that bullish momentum met with resistance at levels above 25,200. According to Deepak Jasani, Head of Retail Research at HDFC Securities, the Nifty may remain within the 24,832 to 25,230 range in the near term. A breach of either boundary could indicate a significant acceleration in market direction.
Technical Analysis of Bank Nifty
From a technical standpoint, maintaining a position above 50,190 for the Nifty Bank Index suggests a “buy on dips” strategy could be effective. Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd., highlights that the 51,700–51,800 range will pose a short-term hurdle for Bank Nifty.
Global Market Sentiments Amidst Geopolitical Tensions
Amidst the ongoing Iran-Israel conflict, the stock market dynamics in the Asia-Pacific region remained mixed. Chinese markets faced a steep decline, owing to disappointments surrounding stimulus efforts deemed inadequate. In Europe, stock performance commenced moderately with a slight upward trend, as investors focused on potential antitrust charges against Alphabet Inc. (the parent company of Google) and hints from the Federal Reserve regarding a gradual interest rate reduction, shaping investor attitudes.
Market participants are closely monitoring oil price fluctuations linked to ongoing Middle Eastern tensions, as well as upcoming domestic quarterly earnings reports. Vikram Kasat, Head of Advisory at Prabhudas Lilladher, noted that these elements are likely to considerably influence market performance in the following days.
Recommended Stocks for Thursday
Sumeet Bagadia, Executive Director at Choice Broking, has identified two stocks as promising picks, while Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, has highlighted three stock ideas for consideration today.
Among the highlighted stocks are Prestige Estates Projects, Marksans Pharma, NMDC, JSW Steel, and Ashok Leyland.
Sumeet Bagadia’s Stock Recommendations
1. Prestige Estates Projects: Bagadia recommends buying at ₹1858.2 with a stop loss at ₹1793, targeting a price of ₹1988. The stock is currently showing a bullish market sentiment, reflected by a strong candlestick pattern on the daily chart, indicating potential upward movement if it holds above ₹1900.
2. Marksans Pharma: Suggested entry at ₹297.05, with a stop loss set at ₹287 and a price target of ₹318. The stock displays a robust bullish trend having recently broken out from a declining trendline, combined with significant buying interest.
Ganesh Dongre’s Stock Insights
3. NMDC: Recommended buy price is ₹224, with a stop loss at ₹218 and a target of ₹235. The recent bullish reversal in NMDC indicates a potential rally towards the established target.
4. JSW Steel: Buy at ₹995 with a stop loss at ₹980 and a target price of ₹1025. Observations of support just below the current price suggest a lasting upward trend, particularly with rising Relative Strength Index (RSI) readings.
5. Ashok Leyland: Purchase at ₹222, with a stop loss of ₹216, aiming for ₹230. The presence of a bullish engulfing pattern illustrates strong upward momentum for this stock.
Disclaimer: The perspectives and recommendations presented here represent the opinions of individual analysts or brokerage firms, not of this publication. We strongly advise investors to consult with certified financial experts prior to making any investment decisions.
