Stock Market News: Friday's session saw significant selling on the domestic benchmark indices, Sensex and Nifty 50, with foreign investors recording high levels of selling in October.
The Nifty 50 index saw an initial drop of 0.34% or 84 points, opening at 24,664.95 points. In comparison, the Sensex index opened at 80,749.26, marking a decrease of 257 points or 0.32%.
Experts suggest that Indian stocks are currently experiencing continuous pressure from foreign institutional investors (FIIs), although there is hope for a better outlook in the coming weeks due to the anticipated strong recovery.
Dr. V K Vijayakumar, the Chief Investment Strategist at Geojit Financial Services, highlighted that the current patterns indicate a continuation of FII selling and DII buying. While a rebound may occur in the next two or three days, it is unlikely to be sustained due to the waning sentiments. It is recommended for investors to monitor the situation and wait for the market to stabilize, gradually accumulating largecaps, such as prominent private sector banks affected by FII selling.
Over the past three weeks, the benchmark index has experienced significant profit booking, closing around 2470 levels. Currently, the benchmark index is hovering around a "multiple support zone" of 24,750 levels from the past couple of months. Any breach of this level on a closing basis may lead to further weakness towards 24,300-24,000 levels in the upcoming weeks. Nifty 50 is currently trading below its 20 and 50-day SMA, confirming a bearish bias. Conversely, any relief rally towards 25,000-25,300 levels could serve as an exit opportunity for short-term traders.
Based on the current closing price, the stock is poised for breaking through a long-standing resistance zone around the 2650 levels. A decisive breakout above this level could lead to significant upward momentum. In the short and medium term, the stock is trending upwards, forming higher tops and bottoms, indicating bullish sentiment. The stock is comfortably trading above its 20, 50, 100, and 200-day simple moving averages (SMA), which are also trending upwards along with the stock price, confirming the bullish trend. Additionally, the daily, weekly, and monthly Relative Strength Index (RSI) indicators are in positive terrain, reinforcing strength across all time frames.
Investors should buy, hold and accumulate this stock with an expected upside of ₹2,730-2,900 with downside support zone of ₹2,470-2,390 levels.
On the weekly chart, the stock is trending higher in an "up-sloping channel," forming a series of higher tops and bottoms, indicating bullish sentiments. Recently, the stock has reclaimed the 100-day SMA support at 367 levels and bounced back sharply, indicating a positive bias. The daily and weekly strength indicator RSI is in positive terrain, justifying rising strength. The significant increase in trading volumes signifies increased participation.
Investors should buy, hold and accumulate this stock with an expected upside of ₹465-485 with downside support zone of ₹405-390 levels.
On the weekly chart, the stock is trending higher in an "up-sloping channel," forming a series of higher highs and higher lows, indicating bullish sentiments. Recently, the stock has reclaimed the 100-day SMA support at 367 levels and bounced back sharply, indicating a positive bias. The daily and weekly strength indicator RSI is in positive terrain, justifying rising strength. The significant increase in trading volumes signifies increased participation.
Investors should buy, hold and accumulate this stock with an expected upside of ₹395-415 with downside support zone of ₹330-316 levels.
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.
