Stock Market News: Information technology (IT) stocks led the way as the domestic benchmark indices, the Sensex and the Nifty 50, opened Tuesday's trading session at all-time highs. These stocks continued to advance on fresh expectations that the US Federal Reserve will decrease interest rates in September. However, indices were driven down from their record high levels to the flat arena within a short period of time in the trade by banking, financial services, and auto stocks.
The 30-share BSE Sensex opened higher by 364.18 points or 0.46% at 79,840.37 level while the Nifty 50 started off at 24,228.75 level, up 86.80 points or 0.36%.
Dr. V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services, claims that after generating 20% gains in 2023, the Nifty 50 has generated 10.4% returns in the first half of 2024. These are rather remarkable results. The absence of a notable correction has been a key characteristic of this bull market, which started with the COVID fall in March 2020 (Nifty 50 at 7511). The Nifty 50 only had a fall of more than 5% on June 4th in reaction to the election results. However, there was a notable rebound the very following day. The effective "buy on dips" approach that domestic investors, both institutional and retail, have been employing is responsible for this market's one-way movement.
Nifty 50 started the day around 24,000 mark and witnessed a gradual up move to end the first session of the week above 24,100 with gains of about half a percent, said Ruchit Jain, Lead Research Analyst at 5paisa.
Nifty 50 continued its move in the direction of the primary trend, and although no major move was seen on the index the stock specific momentum was robust with outperformance seen from the IT sector. The RSI readings are hinting at a continuation of the momentum while the buying interest of FIIs is leading the markets higher. Although the FIIs positions in the index futures are long-heavy, there are no signs of unwinding yet and hence until there are any signs of reversal on charts or in data, traders should continue to trade with a positive bias. The immediate support for Nifty 50 is placed around 23,900 followed by 23,700 while the index has potential to rally towards 24,600 in the near term as per the retracement levels.
On stocks in focus on Tuesday, Ruchit Jain recommends buying two stocks - SBI Life Insurance Company Ltd, and ACC Ltd.
Ruchit stated that the stock has seen a corrective phase in last few months, but has managed to recover from the lows and have recently given a breakout above a falling trendline resistance. Post the breakout, the prices consolidated in a range above its 20 DEMA support and the RSI oscillator hints at a positive momentum.
Thus, we expect the stock to resume its uptrend and move gradually higher. Hence, short- term traders can look to buy this stock in the range of ₹1,505-1,490 for potential targets around ₹1,570 and ₹1,600. The stop loss on long positions should be placed below ₹1,440.
Jain explained that the cement stocks are showing a positive momentum since last few days and this stock has managed to give a breakout from a long consolidation phase. The volumes are rising while the RSI is hinting at a positive momentum.
Positional traders can buy the stock in the range of ₹2,750-2,740 for potential targets of ₹2,900 and ₹3,000. The stop loss on long positions should be placed below ₹2,610.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
