Stock Market News: On Tuesday, the Nifty 50 and Sensex, the domestic benchmark indices, commenced trading near a record high, but investors are adopting a cautious approach as they await the Fed rate cut announcements.
The Nifty 50 index saw an opening at 25,416.90 points, marking a 0.13% increase of 33 points, while the Sensex opened at 83,084.63, registering a gain of 95 points.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, claims that yesterday's flat global equity markets indicate that investors are holding back in front of tomorrow's Fed rate decision. The incoming data and changing outlook will determine the Fed's rate action, thus the words of Fed Chairman Powell will be quite important. Lower interest rates are good for the markets, and larger rate cuts are even better.
In spite of the market consolidating, individual stocks showed specific movement. The Nifty 50 is currently positioned near the upper boundary of a 'Rising Wedge' pattern, making it a critical juncture. However, there are no signs of weakness, as the market breadth remains positive. Traders are advised to align with the primary trend's direction. Immediate support for the Nifty 50 is around 25,220, followed by 25,100, with resistance levels at approximately 25,500 and 25,700. With the upcoming global event of FED's policy decision, it is anticipated that the index will continue to trade within this range.
On stocks in focus on Tuesday, Ruchit Jain recommends NTPC Ltd, and Greaves Cotton Ltd.
In last few weeks, the stock witnessed a corrective phase where prices corrected from ₹426 to a low of ₹385. At the recent low, the 89 DEMA has acted as a support and prices have rebounded from the support. The price volume action and the RSI set up hints at a continuation of the uptrend.
Hence, short term traders are advised to buy the stock in the range of ₹410-405 for potential targets of ₹434 and ₹448. The stoploss on long positions should be placed below ₹385.
The stock has given a breakout from a consolidation with rising volumes which is a bullish sign. The RSI oscillator too has a positive setup and hence, we expect the stock to rally higher in the near term. Traders can buy the stock around current market price of ₹188 for potential targets of ₹198 and ₹205. The stop loss on long positions should be placed below ₹177.
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.
