Stock Market News: The opening of the domestic benchmark indices, Sensex and Nifty 50, was somewhat lower on Friday due to market nervousness ahead of an important US employment data that might impact the trajectory and magnitude of the Federal Reserve's interest rate reductions.
At 9:50 IST, the Sensex plunged 0.61% to 81,697.11, while the Nifty 50 index dropped 0.6% to 25,001.05 points.
The US jobs data that will be released tonight will have an impact on the market's near-term trend, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Everyone agrees that the Fed will lower interest rates at its September meeting, but the jobs data will dictate how much. The Fed may potentially drop interest rates by 50 basis points if the August jobs report is below market estimates and the unemployment rate is beyond market projections. But the market might not see this favourably, explained Vijayakumar.
The benchmark index is in a strong uptrend, forming a series of higher tops and bottoms, indicating a sustained uptrend. It has also reached an all-time high at 25,333 levels, representing bullish sentiments. The index is well placed and sustaining above its 20, 50, 100, and 200-day SMA, which confirms the bullish trend. However, in the past week, the strength indicator RSI showed negative divergence, signalling a loss of strength at the new high. It has also given a negative crossover from the overbought zone. An immediate crucial support zone is around 25,000 levels, and any violation of the same may cause further profit booking towards 24,800-24,500 levels. However, the overall major trend is still intact and bullish, with an expected upside of 25,500-25,800 levels.
On the daily and weekly timeframes, the stock has experienced a trend reversal as it is trending higher, forming a series of higher tops and bottoms. The stock has recaptured the 20-day simple moving average (SMA) at 280 and rebounded sharply, which reconfirms the bullish trend. It is also well placed above its downward-sloping trendline from the past couple of years, indicating a strong comeback of bulls. This buying is accompanied by huge volumes, indicating increased participation. The daily, weekly, and monthly RSI is in positive terrain, showing rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of ₹350-385 with downside support zone of ₹280-275 levels.
The stock is currently experiencing a strong uptrend across all time frames, indicating bullish sentiments. It is positioned well above its 20, 50, 100, and 200-day Simple Moving Averages (SMA), and these averages are also rising along with the price, confirming the bullish trend. Additionally, the daily, weekly, and monthly RSI indicators are in positive terrain, further supporting strength across all time frames. The stock is following an upward sloping channel, which suggests sustained strength and trend.
Investors should buy, hold and accumulate this stock with an expected upside of ₹735-785 with downside support zone of ₹668-640 levels.
On the weekly chart, the stock has confirmed a "Rounding Bottom" formation at the 295 levels on a closing basis. This breakout is accompanied by huge volumes, indicating increased participation. Additionally, the weekly "Bollinger Band" buy signal signals increased momentum. The daily, weekly, and monthly RSI is in positive terrain, showing rising strength. The stock has also surpassed the multiple resistance zone of 325 levels from the past couple of years, indicating bullish sentiments.
Investors should buy, hold and accumulate this stock with an expected upside of ₹385-435 with downside support zone of ₹315-295 levels.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
