Stock market today: The Indian stock market experienced a broad selloff on Friday, October 25. Both benchmark indices—the Sensex and the Nifty 50—each fell by nearly one percent, while the mid-cap and small-cap sectors saw declines of 2%.
The Sensex dropped 663 points, or 0.83%, closing at 79,402.29. Meanwhile, the Nifty 50 fell by 219 points, or 0.90%, to finish at 24,180.80. The BSE Midcap and Smallcap indices recorded decreases of 1.48% and 2.44%, respectively.
On the outlook for the market today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. (A Pantomath Group Company), said, “The Nifty opened on a flat note but encountered heavy selling pressure, closing at 24,181. The volatility index, INDIA VIX, rose by 4.74% to 14.63, indicating increased market volatility. Technically, Nifty formed a bearish candle on both daily and weekly charts, indicating weakness. The 150-Days Exponential Moving Average (DEMA) is placed near 23,950, along with the previous swing low at 23,893. Thus, index will found good support in the 23,900–23,950 range. On the upside, 24,500 and 24,700 are significant resistance levels, and traders should consider booking profits on any bounce, given the prevailing bearish sentiment."
On Bank Nifty's outlook, Yedve added, “Bank Nifty opened with a gap down and remained bearish throughout the day. As a result, the index concluded the day on a negative note at 50,787. Technically, on a daily scale, Bank Nifty has formed a bearish candle and breached the crucial support level of 51,000, indicating weakness. However, the index found support near 150- Days Exponential Moving Average (DEMA) and trend line support, which helped index to give some relief rally. 150-DEMA is currently placed near 50,380. As long as Bank Nifty respecting 50,380, a bounce to 51,000 is feasible, but it should be used for profit booking. Sustaining below 50,380 might push Bank Nifty to psychological thresholds of 50,000.”
On the fundamental outlook for Nifty, Vinod Nair, Head of Research, Geojit Financial Services, said, “Investor psychology turned a bit gloomy due to the ongoing geopolitical tensions and a kneejerk reaction from FIIs, which dragged the sentiment. The main indices, Nifty and Sensex, declined by 2.7% and 2.2%, respectively. While bears smashed mid and small caps, which plunged by 5.2%/7.4%. From the recent high, the main indices slid by ~8%. The sustained selling by FIIs and lack of triggers in the domestic market may impact the near-term sentiment in the market.”
Nair further added, "The quarter results were impacted due to a tepid demand environment and margin pressure, which dragged FMCG, metal, auto, and realty the most. While IT remained relatively flat and contributed less to the overall losses in expectation of a pickup in BFSI spending and a favourable outlook in US spending. We expect the consolidation to continue in the short term; a reversal in trend will depend on a slowdown in FIIs selling intensity and the outcome of the US presidential election. The domestic macros are largely favouring the market with the unveiling of strong PMI data and reiterating economic growth forecast for FY25 by the RBI. A moderation in valuation, a pickup in earnings in H2FY25, and an expectation of an RBI rate cut in 2025 will provide support to the market. Sectors to watch include consumption, FMCG, infrastructure, new-generation companies, manufacturing, and chemicals."
Some of the major companies that will announce their July-September quarter results for fiscal 2024-25 (Q2FY25) on Monday, October 28 are Adani Power, Bharti Airtel, Sun Pharmaceutical Industries, Ambuja Cements, Punjab National Bank, BHEL, Federal Bank, IOC, JSW Infrastructure, Motilal Oswal and others.
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 six stocks: Yatharth Hospital & Trauma Care Services, Thermax, Torrent Pharmaceuticals, ICICI Bank, and BEL.
Yatharth Hospital stock is exhibiting strong bullish momentum, currently trading at an all-time high of ₹667.2 levels. The recent breakout above the crucial resistance at 628 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.
Additionally, Yatharth Hospital is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 63.98 levels.
For traders, keeping an eye on the strong support near 625 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, Yatharth Hospital current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.
Based on the above analysis we recommend buying Yatharth Hospital and the CMP of ₹649.65 with a stop loss of ₹625 for the target of ₹690.
Thermax stock price has recently experienced a significant breakthrough on the daily chart. This breakout has been accompanied by a bullish trend of the upward movement, characterized by higher highs and higher lows. The strong bullish sentiment is further validated by a noticeable surge in trading volume.
Key technical indicators, particularly the Relative Strength Index (RSI), highlight the positive momentum in the stock. The RSI not only indicates favourable trends but also aligns with the stock trading above important moving averages, including the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). This convergence underscores the continued strength in Thermax price action.
In summary, the decisive breakout, along with encouraging volume and the positive alignment of key technical indicators, suggests a bullish outlook for Thermax shares. Traders and investors may interpret this analysis as indicative of potential sustained upward momentum in the stock.
Considering the above analysis, we recommend Thermax shares in cash at the current market price (CMP) of ₹5,431.15, setting a target of ₹5,750, and implementing a stop loss at ₹5,222.
In the recent short-term trend analysis of the Torrent Pharmaceuticals 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 ₹3,600. At present, the stock is maintaining a crucial support level at ₹3,375. Given the current market price of ₹3,433, a buying opportunity is emerging. This suggests that investors might consider purchasing Torrent Pharma stock at its current price, anticipating a rise towards the identified target of ₹3,600.
In the recent short-term trend analysis of ICICI Bank 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 ₹1,310. At present, ICICI Bank stock is maintaining a crucial support level at ₹1,230. Given the current market price of ₹1,260, a buying opportunity is emerging. This suggests that investors might consider purchasing ICICI Bank shares at its current price, anticipating a rise towards the identified target of ₹1,310.
In the recent short-term trend analysis of Bharat Electronics shares, 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 ₹290. At present, the stock is maintaining a crucial support level at ₹265. Given the current market price of ₹275, 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 ₹290.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
