Stock market today: The Indian stock market witnessed a marginally lower closing on Wednesday, October 23. The Nifty 50 closed the session down by 0.15 per cent at 24,435, and the Sensex finished trading with a decrease of 0.17 per cent at 80,081.
Thirty-two constituents of the Nifty 50 ended the day in negative territory, with Mahindra & Mahindra leading the decline at 3.2 per cent.
On the outlook for market today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd., said, “Nifty opened with a gap down, but the index saw buying demand in the first half. However, in the second half, the index saw profit booking and concluded the day on a negative note at 24,436. INDIA VIX climbed 1.31% to 14.59, indicating a rise in market volatility. However, the broader market outperformed the benchmarks, with the Nifty Midcap 100 and Smallcap 100 indices rising by around 0.64% and 1.25%, respectively."
On Bank Nifty outlook, Yedve said, "Bank Nifty also opened gap down but found support near the 100-Days Exponential Moving Average (100-DEMA) at 51,100, which led to buying interest. However, index closed the day on a flat note at 51,239. Technically, on a daily scale, Bank Nifty also formed an inverted hammer candle near its 100-DEMA support, indicating strength. The 100-DEMA support is positioned near 51,100, with last week’s low near 51,000. Thus, 51,000-51,100 will offers good support for Bank Nifty in short term. As long as Banknifty holding above it pullback rally could be possible. However, a sustained break below 51,000 could trigger further downside.”
On the technical outlook for Nifty today, Rupak De, Senior Technical Analyst, LKP Securities said, "The Nifty formed an inverted hammer pattern on the daily chart, suggesting a possibility of recovery in the near term. Immediate support is placed at 24,350, where the 38.20% Fibonacci retracement level lies. Going forward, if Nifty holds above 24,350, it might recover towards 24,700-24,750. A further recovery above 24,750 could lead to a move towards 25,250. However, a significant correction may occur if Nifty falls below 24,350."
Around 100 companies will declare their Q2 2024 results on Thursday, including ITC, NTPC, Dixon Technologies, Adani Wilmar 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 five stocks: Max Financial Services, MCX, Tata Consumer Products, MMTC and Bharat Dynamics.
Max Financial Services stock is exhibiting strong bullish momentum, currently trading at an all-time high of ₹1,298.6 levels. The recent breakout above the crucial resistance at ₹1,212 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, MFSL 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 69 levels.
For traders, keeping an eye on the strong support near ₹1,222 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, MFSL 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 MFSL and the CMP of ₹1,271.9 with a stop loss of ₹1,222 for the target of ₹1,350.
MCX is currently trading at ₹6,686.05, showing a strong upward trajectory. The stock has exhibited a consistent pattern of higher highs and higher lows, underscoring sustained bullish momentum. Notably, it recently reached a fresh all-time high of ₹6,805.45. The stock is trading above its 20-Day EMA, 50-Day EMA, and 200-Day EMA, indicating strong support from short-term and long-term trends. MCX holds the potential for further appreciation. Having broken through a key resistance level, if the trend continues and higher levels are breached, the stock could potentially reach a target of ₹7,100.
On the downside, immediate support is located at ₹6,450. The Relative Strength Index (RSI) is currently at 71.75 and trending upward, reflecting growing buying momentum. To manage risk effectively, a stop-loss at ₹6,450 is suggested to guard against any unexpected market reversals.
In conclusion, based on the technical analysis and current market conditions, MCX presents a promising buying opportunity for those aiming for a ₹7,100 target, provided that appropriate risk management strategies are in place.
In the recent short-term trend analysis of the Tata Consumer Products 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 ₹1,045. At present, the stock is maintaining a crucial support level at ₹1,000. Given the current market price of ₹1,015, 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 ₹1,045.
In the recent short-term trend analysis of the MMTC 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 ₹80. At present, the stock is maintaining a crucial support level at ₹74. Given the current market price of ₹76.50, 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 ₹80.
In the recent short-term trend analysis of Bharat Dynamics 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 ₹1,105. At present, the stock is maintaining a crucial support level at ₹1,050. Given the current market price of ₹1,073, 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 ₹1,105.
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.
