Indian stock market: The Indian stock market closed lower on Friday, breaking a three-week winning streak, as investors exercised caution ahead of a key US jobs report that could influence the Federal Reserve's decisions on the pace and extent of interest rate cuts. The Nifty 50 and BSE Sensex ended Friday's session in negative territory. The Nifty 50 dropped by 1.17 percent, closing at 24,852 points, while the BSE Sensex declined 1.25 percent, finishing at 81,170 points.
On the Nifty outlook, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd., said, “The Nifty started the week on a positive note, but global uncertainty dampened market sentiment, leading the index to close the week negatively at 24,852. On the daily chart, Nifty closed below its 21-Day Exponential Moving Average (DEMA), indicating further weakness. The next major support is near 24,480, where the 50-DEMA is positioned. In the short term, any bounce should be seen as an opportunity to book profits.”
On the Bank Nifty outlook, Yedve added, "Bank Nifty opened with a gap-down on Friday and showed weakness throughout the day, closing on a negative note at 50,577 levels. Technically, the index formed a large red candle on the daily chart, indicating weakness. On the weekly scale, index has formed a bearish engulfing candle, which supports a negative bias. On the upside, the 50-Day Exponential Moving Average (DEMA), near 50,940, will act as an immediate hurdle. Thus, any bounce near 50,940 should be used for booking profits. On the downside, 50,000 and 49,650 will serve as key support levels for Bank Nifty in the short term."
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 these five shares: Inox Wind, Max Health, Sonata Software Ltd, Zomato, and MTAR Technologies Ltd.
INOXWIND is currently trading at ₹225.88 and is in an upward trend, consistently forming higher highs and higher lows on the daily chart. The stock is consolidating near its historical peaks and shows signs of attempting to break through higher levels, supported by notable trading volumes, which reflect the strength of the trend. If INOXWIND surpasses the ₹230 mark, it could potentially advance toward a target of ₹246.
The Relative Strength Index (RSI) is at 67.32 and is on the verge of a positive crossover, indicating increased buying momentum. Additionally, INOXWIND has found support near its short-term (20-day) EMA levels, which reinforces the bullish trajectory.
In summary, based on the technical setup and indicators (RSI and moving averages), buying INOXWIND at ₹225.88 with a stop loss at ₹216 and a target price of ₹246 presents a compelling opportunity for potential gains.
MAXHEALTH is currently trading at ₹898.55 and is in a long-term uptrend, consistently forming higher highs and higher lows on the daily timeframe. The stock recently experienced a pullback from higher levels but has reversed from strong support areas, indicating that the bullish trend is likely to continue. If the stock can close above the ₹920 level, it is poised to potentially move toward an upward target of ₹980.
The Relative Strength Index (RSI) is at 57.05 and trending upward, further supporting the bullish momentum. Additionally, MAXHEALTH has surpassed its key moving averages, including the 20-day and 50-day EMAs, confirming the strength of the current uptrend.
Based on this analysis, we recommend buying MAXHEALTH at ₹898.55, with a stop loss set at ₹858 and a target of ₹980. This trade setup aligns with the bullish technical indicators observed in the stock.
In the recent short-term trend analysis of the 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 Rs.735. At present, the stock is maintaining a crucial support level at Rs.660. Given the current market price of Rs.690, 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.635.
In the recent short-term trend analysis of the Zomato 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 Rs.285. At present, the stock is maintaining a crucial support level at Rs.242. Given the current market price of Rs.260, 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.285
In the recent short-term trend analysis of the 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 Rs. 1840. At present, the stock is maintaining a crucial support level at Rs.1740. Given the current market price of Rs.1776, 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. 1880.
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 decisions.
