Stock Market News: The domestic benchmark indices, the Nifty 50, and Sensex, hit record highs at opening on Thursday. The Nifty 50 crossed over 25,000 points, while the Sensex overtook 82,000 points for the first time ever, tracking a global rally following US Federal Reserve Chair Jerome Powell's September interest rate cut hint.
As of 9:15 IST, the Sensex gained 0.25% to 81,949.68, while the Nifty 50 increased 0.32% to 25,030.95 points.
After the US Fed kept interest rates unchanged as predicted, Asian markets joined the Wall Street overnight rise. Powell, however, mentioned a "growing sense of confidence" that rate reduction may begin in September, again as predicted.
The US Fed chairman's indication that interest rates would be lowered in September is encouraging for global equity markets, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. More importantly, his assertion that the US economy is normalising gives bulls hope. The steep decline in the yield on US 10-year bonds to 4.05 might potentially reverse or perhaps stop the recent FII selling in the cash market.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
Throughout this week's trading sessions, the Nifty 50 trading range has consistently narrowed, demonstrating a prudent approach in the elevated zone. The absence of significant domestic triggers seems to be contributing to the benchmark's consolidation. Nevertheless, the broader market is displaying encouraging signs of gaining momentum, which is keeping traders actively involved.
From a technical perspective, the outlook for the Nifty 50 index looks promising because any blips are consistently met with buying interest, and recent developments have confirmed this pattern. On the level-specific front, a decisive surpass beyond the milestone of 25,000, can accelerate the rally towards the 161.8% retracement level of the previous week's swing at 25,340 for the Nifty on an intermediate basis. On the flip side, the lower band of consolidation, placed around 24,800 is likely to cushion any upcoming blips, while strong support is located at the 24,600-24,500 zone, explained Osho Krishan.
The market sentiment appears optimistic, and active participation in the high beta space, such as Bank Nifty, has the potential to fuel the benchmark's upward momentum into uncharted territory. Furthermore, it is crucial to closely observe the outcome of the Federal Reserve meeting as it is likely to shape the short-term trajectory of both global and domestic markets. Therefore, staying informed about global developments is essential for making well-informed trading decisions.
On stocks to buy today, Osho Krishan recommended two stocks - Alkem Laboratories Ltd, and GMR Airports Infrastructure Ltd.
Alkem Laboratories witnessed a substantial increase in price in the last couple of trading sessions after testing its lower band of the symmetrical triangle pattern, coinciding with 50 DEMA on the daily time frame chart. After a decent consolidation, the stock shows signs of regaining strength and appears poised to witness a pattern breakout. On the oscillator front, most of the indicators are strongly aligned with the momentum, and the positive crossover in the 14-period RSI adds a bullish quotient, suggesting a potential upside journey in a comparable period.
“Hence, we recommend to BUY Alkem Laboratories around ₹5,300-5,250, keeping a stop loss of ₹5,090 for a potential target of ₹5,580-5,620,” advised Osho.
GMR Airports Infrastructure has shown steady growth in the past couple of trading sessions, moving from a 50 DEMA on the daily chart to witness a consolidation breakout. Currently, the stock hovers comfortably above all its significant EMAs and appears poised to continue its northward journey in the comparable period. The recent traction has been backed by a notable increase in trading volumes, suggesting a potent upsurge; also, the 14-period RSI firmly showcased a positive crossover, adding a bullish stance to the counter.
"Hence, we recommend to BUY GMR Airports Infrastructure around ₹100-98, keeping a stop loss of ₹92 for a potential target of ₹112-116," said Krishan.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
