Market Summary: Domestic equity benchmarks, specifically the Sensex and Nifty 50, experienced a gentle rally today, primarily driven by gains in banking and power sector stocks. This uptick came amid a generally stable trend in global financial markets. Traders observed that the market remained mostly range-bound, lacking any significant triggers, compounded by ongoing foreign capital outflows.
The Nifty 50 index edged up by 0.07% to close at 24,998.45, while the S&P BSE Sensex rose 0.18% to 81,611.41. Earlier in the session, both indexes had climbed nearly 0.6%. In the broader market, the BSE mid-cap index fell by 0.36%, while the small-cap index showed resilience with a gain of 0.43%.
Company Insights: Tata group shares surged by as much as 15%, with gains seen in Tata Investment Corporation, Tata Chemicals, and Tata Teleservices. Tata Consultancy Services (TCS), India’s largest IT services company, reported a net profit increase of 4.99% for the July-September quarter, amounting to ₹11,909 crore, despite being hindered by narrowing profit margins.
Global Market Trends: In overseas markets, major U.S. indexes dropped slightly as investors digested higher-than-expected consumer inflation and unemployment claims, looking for clues about the health of the U.S. economy and potential movements in interest rates.
The consumer price index for September witnessed a monthly rise of 0.2% and an annual increase of 2.4%, slightly surpassing economists’ expectations. The core inflation figure, excluding food and energy prices, rose by 3.3% year-over-year, compared to the anticipated 3.2% increase.
Expert Stock Recommendations for Today
According to Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, the Nifty 50 index is currently consolidating around the 25,000 mark, advising traders to maintain a cautious approach while hoping it remains above the 24,900 level.
Regarding the Bank Nifty, Parekh observed a robust pullback, exceeding the significant 100-period moving average at 51,200. A decisive move above 52,000 could signal further bullish momentum.
Stocks to Watch
Vaishali Parekh recommends the following stocks as potential intraday picks:
- Granules India: Buy at ₹578, with a target price of ₹602 and a stop loss at ₹566.
- Balkrishna Industries: Purchase at ₹3,059, targeting ₹3,170, and set a stop loss at ₹3,000.
- Bharat Electronics Ltd (BEL): Buy at ₹286.90 targeting ₹302, with a stop loss of ₹280.
Market Outlook
Parekh indicates that for the Nifty 50 to project a more positive bias, it must breach the 25,300 level, which would pave the way for further upward movements. Additionally, sectors like defence stocks—GRSE, Mazagon Dock, BDL, Cochin Shipyard, and HAL—are showing promising trends due to increased buying interest and significant volume participation.
For today’s trading, the Nifty’s support is pegged at 24,850, while resistance is anticipated at 25,200. With respect to Bank Nifty, the operational range is projected between 51,200 and 52,000 levels.
Disclaimer: The insights and recommendations outlined herein are attributed to individual analysts or brokerage firms and do not represent the views of our publication. We strongly suggest investors consult certified financial advisors before committing to any investment decisions, as market dynamics can shift swiftly and individual financial situations may differ.
