Stock market today: The Indian stock market extended its losing run to the fourth straight day in the previous session on disappointing earnings and unabated foreign capital outflows. The NSE Nifty index slipped 36.10 points, or 0.15 per cent, to close at 24,399.40 in a volatile trade, and the 30-share BSE Sensex shed 16.82 points, or 0.02 per cent, to settle at 80,065.16.
The Nifty 50 has lost about two per cent this week and is down 7.15 per cent since hitting a record high on September 27. Foreign institutional investors (FIIs) have net sold Indian shares for eighteen sessions through Wednesday, redirecting funds to China on Beijing's stimulus measures and over relatively cheaper stocks.
On the outlook for the market today, Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, “Nifty, after a positive start, traded sideways for a major part of the session and closed with a marginal loss. Sector-wise, it was a mixed bag with buying seen in Banking and Financials. The FMCG index declined more than two per cent after HUL & Nestle reported disappointing numbers.”
Also Read: Stock market today: Nifty 50, Sensex end range-bound trade marginally lower; FMCG, realty suffer
“Metals, too, saw some selling pressure, especially Hindalco, after its global peer Constellium reported results below estimates. Nifty has been consolidating for the last two sessions following persistent foreign outflows and dull earnings. We expect this range-bound move (Nifty hovering around the 24,400-24,500 zone) to continue without any major triggers, while the earning season would drive sectorial rotation," said Khemka.
On Bank Nifty's outlook, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd, said, “Bank Nifty opened on a positive note and maintained bullish momentum throughout the day. As a result, the index settled the day on a positive note at 51,531.”
“Technically, on a daily scale, Bank Nifty has formed a bullish candle followed by an inverted hammer candle, which was formed near 100-DEMA support. The pullback rally may continue towards 52,000 levels as long as Bank Nifty remains above 51,000 levels,” said Yedve.
On the technical outlook for Nifty today, Rupak De, Senior Technical Analyst at LKP Securities, said, "Nifty traded in a rangebound manner throughout the session before closing with a marginal loss. The sentiment remains weak as no follow-up buying was visible despite the formation of a bullish reversal pattern after a significant correction.
“During the day, it found support around the 38.20 per cent Fibonacci retracement of the previous rally from the June 2024 low of 21,281 to an all-time high of 26,277. Going forward, a recovery might occur in Nifty unless 24,350 is breached. On the higher end, it could move towards 24,650-24,700. However, a fall below 24,350 could trigger a more serious correction,” said De.
Some of the major companies that will announce their July-September quarter results for fiscal 2024-25 (Q2FY25) on Friday, October 25 are BEL, Chola Investment, JSW Steel, Hindustan Petroleum Corp Ltd (HPCL), Coal India, Bharat Petroleum Corp Ltd (BPCL), among several others.
Regarding shares to buy today, stock market experts Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi and Mahesh M Ojha, AVP — Research at Hensex Securities, recommended buying these six stocks: United Breweries, Reliance Industries, Paytm, Emcure Pharmaceuticals, Ashok Leyland, and State Bank of India (SBI).
1.Ashok Leyland: Buy at ₹217, Target Price ₹223, Stoploss ₹212
The stock has substantial support at Rs.212, marking a crucial juncture in its recent trading. At Rs.217, the stock has demonstrated a definitive price-action reversal, suggesting a potential continuation of its upward momentum.
Traders keen on seizing this opportunity could consider buying and holding the stock, setting a prudent stop loss at ₹212. The anticipated target for this trade is Rs.223, representing the next significant resistance level. This strategy positions traders favorably to capitalize on the stock's anticipated rally in the weeks ahead.
2.Emcure Pharmaceuticals: Buy at ₹1,390, Target Price ₹1,450, Stoploss ₹1,365
A notable bullish reversal pattern has emerged in the stock's recent short-term trend analysis. This technical pattern suggests the possibility of a temporary retracement in the stock's price, potentially reaching around Rs. 1,450.
The stock is currently maintaining a crucial support level at Rs. 1,365. Given the current market price of ₹1,390, 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 Rs. 1,450.
3.State Bank of India (SBI): Buy at ₹795, Target Price ₹810, Stoploss ₹780
This stock's daily chart shows a breakout at the Rs. 795 price level, signalling a potential upward trend. Complementing this breakout, the Relative Strength Index (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 Rs. 780 is recommended. The target price for this strategy is Rs. 810 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.
4.United Breweries: Buy in the range of ₹1,970-1,978, Target Price Range: ₹1,998-2,010-2,025-2,050+, Stoploss ₹1,948
5.Reliance Industries: Buy in the range of ₹2,675-2,680, Target Price Range: ₹2,698-2,715-2,725+, Stoploss ₹2,650
6.Paytm: Buy in the range of ₹755-765, Target Price Range: ₹785-800-810, Stoploss ₹728.
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.
