Stock market today: The domestic benchmark indices of the Indian stock market, Sensex and the Nifty 50 index, showed a recovery in the second half of the trading session on Friday, October 18, a contrast from the initial weak start. Therefore, the frontline indices closed higher, breaking a three-day losing streak.
The Nifty 50 gained 0.42 per cent, closing in positive territory at 24,854 points, mainly due to a robust recovery in banking and auto stocks. Similarly, the Sensex gained 0.27 per cent, closing at ₹81,227.
On the outlook for market today, Vinod Nair, Head of Research, Geojit Financial Services said, “A sustained selling pressure from FPIs, muted Q2 earnings expectations, and elevated valuations acted as a headwind for the market. Insipid demand and volatility in input prices are the hinderance of a slowdown in earnings during the quarter.”
“Geopolitical tensions and uncertainty ahead of the US presidential election paved the way for haven asset gold to climb a new record high. While a caution from an auto major about weak festival demand further added pressure on the indices,” he added.
On Bank Nifty, Nair said, “Bank Nifty, on the other hand, recouped the current week losses on account of a positive start to the earnings season with lower-than-expected slippages, supporting large private banks.”
“We expect the investment strategies favouring China over India may tactically support for the short term,” the stock market expert said.
Meanwhile, on long-term market outlook, he said, “However, the long-term outlook for the domestic market remains robust with a stability in growth and a pickup in capex. We expect the market to be range-bound in the short term with mixed bias, while investors should turn more sector- and stock-specific in such a time. Focus will be on large caps and growth areas like staples, agriculture, FMCG, consumption, power, digital, and infra. Buy-on dips will be the strategy on a short- to medium-term basis.”
On the technical outlook for Nifty today, Rupak De, Senior Technical Analyst, LKP, said, “The Nifty has moved up sharply after forming a panic bottom around 24,570, failing to sustain below 24,700. On the hourly chart, a positive divergence is visible on the RSI (14), indicating a shift toward positive price momentum. Immediate resistance is seen at 24,900, which previously acted as support. A decisive move above 24,900 could induce a short-term rally. The trend is likely to remain strong as long as the Nifty stays above 24,750.”
Around 45 companies will declare their Q2 results 2024 on Monday. The listed companies include Ultratech Cement , NELCO, Bajaj Housing Finance, Jana Small Finance Bank, and Mahindra Logistics Ltd.
Regarding shares to buy today, stock market experts Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommended buying these five stocks: Bata India, Torrent Power, Reliance Industries, National Aluminium Company, NMDC.
Bata India stock is currently trading at ₹1,464.95. The stock is on the verge of breaking out of a consolidation range on the daily chart, supported by a significant increase in trading volumes, further strengthening the bullish outlook. If Bata India shares manage to hold above the key level of ₹1,475, it could see an upward movement towards a target of ₹15,68.
The Relative Strength Index (RSI) stands at 59.82 and is trending upward, reflecting increasing buying momentum. Additionally, Bata India is trading above its key moving averages, including the short-term 20-day EMA, medium-term 50-day EMA, and long-term 200-day EMA, reinforcing the ongoing bullish trend.
In summary, based on the favourable technical setup and key indicators such as RSI and moving averages, buying Bata India at the current market price of ₹1,464.95, with a stop loss at ₹1,414 and a target of ₹1,568, presents a compelling opportunity for potential gains. This strategy aligns well with the stock's bullish trend.
2. Torrent Power: Buy at ₹1,973.65, target ₹2,112 , stop loss ₹1,905.
Torrent Power is currently trading at ₹1,973.65 and is showing a strong bullish trend, marked by the formation of higher highs and higher lows and also a potential breakout from a consolidation range on the daily chart. The movement is further supported by a notable increase in trading volumes, which adds strength to the positive trend. If the stock sustains above the key psychological level of ₹2,000, it is likely to see an upward move toward the target of ₹2,112.
The RSI is at 61.78 and trending upwards, indicating increasing buying momentum. Additionally, Torrent Power is trading above key moving averages, including the 20-day EMA (short-term), 50-day EMA (medium-term), and 200-day EMA (long-term), further reinforcing the bullish sentiment.
Given the favourable technical setup, including the positive RSI and moving averages, buying Torrent Power at the current price of ₹1,973.65 with a stop loss at ₹1,905 and a target of ₹2,112 presents a compelling opportunity for potential gains. This strategy aligns with the ongoing bullish trend of the stock.
3. Reliance Industries: Buy at ₹2,720 , target ₹2,800 , stop loss ₹2,670 .
Reliance Industries stock price has substantial support at ₹2,670, marking a crucial juncture in its recent trading. Presently, at ₹2,720, the stock has demonstrated a definitive reversal in price action, suggesting a potential continuation of its upward momentum. Traders keen on seizing this opportunity could consider buying and holding RIL shares, setting a prudent stop loss at ₹2,670. The anticipated target for this trade is ₹2,800, representing the next significant resistance level. This strategy positions traders favourably to capitalize on the stock's anticipated rally in the weeks ahead.
4. National Aluminum Co: Buy at ₹232, target ₹250 , stop loss ₹224 .
In the recent short-term trend analysis of National Aluminium Company stock, a notable bullish reversal pattern has emerged. This technical pattern suggests the possibility of a temporary retracement in the stock's price, potentially reaching around ₹250. At present, the stock is maintaining a crucial support level at ₹224. Given the current market price of ₹232, a buying opportunity is emerging. This suggests that investors might consider purchasing the stock at its current price, anticipating a rise towards the identified target of ₹250.
5. NMDC Ltd: Buy at ₹231, target ₹242 , stop loss ₹224 .
On the daily chart of NMDC stock, a breakout at the ₹231 price level has been observed, signalling a potential upward trend. Complementing this breakout, the RSI is still turning up, indicating increasing buying momentum. Given these technical indicators, traders can consider buying on dips, entering the stock at a lower price point. To manage risk, a stop loss at ₹224 is recommended. The target price for this strategy is ₹242 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decision.
