Stock Market News: The domestic benchmark indices, Sensex and Nifty 50, began the day with a slight decrease on Thursday following Donald Trump's win, while foreign institutional investors continued to be net sellers in the Indian market.
The Nifty 50 index started the day flat at 24,489.60 points, whereas the Sensex index saw a minor decline of 0.16% in early trading, landing at 80,248.60 points.
Analysts pointed out that global markets reacted positively to Trump's victory on Wednesday, and his election win is anticipated to bring about more significant changes than previously believed. Nonetheless, his actions could have both beneficial and detrimental effects on various sectors.
Dr. V K Vijayakumar, the Chief Investment Strategist at Geojit Financial Services, emphasised that while Trump’s anti-China stance might benefit India, he has criticised 'India’s high tariffs' and could impose tariffs on Indian exports to the US without hesitation.
The 'Trump trade' that has significantly boosted the US markets is not expected to have a comparable positive effect on India, as Indian market valuations are elevated and there are challenges related to an earnings slowdown.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The Indian equity markets had a robust trading session, bolstered by significant developments in the US elections. The benchmark index climbed over 1.10 percent, reaching approximately 24,500 zones, reflecting investor optimism and encouraging market momentum.
The benchmark has successfully moved above the 100-DEMA following a period of consolidation. This ascent also reveals a positive crossover on the 14-period RS) on the daily charts. These positive developments contribute to a favourable advance-decline ratio, highlighting strong bullish momentum. Additionally, the IT index, which increased by nearly 4 percent, significantly enhances overall market sentiment and reflects increasing participation in the market.
The recent price action suggests an encouraging potential for a trend reversal. While it is wise to remain cautiously optimistic, a decisive breakout above 24,500 is still needed to unlock further upward movement towards 24,700-24,800 in the near future. On a positive note, we have witnessed a significant upward shift in the support level around 24,200. This development is likely to provide a cushion against any intraday fluctuations during the upcoming weekly settlement session for Nifty 50.
Global developments have positively influenced market sentiments, and we should take this opportunity to remain attentive over the next few days. A decisive follow-up action from here could generate the momentum needed for a significant move in the near future. Furthermore, with clear evidence of sectoral rotation emerging, adjusting our focus accordingly can help us enhance performance and capitalise on new opportunities.
On stocks to buy on Thursday, Osho Krishan recommended two stocks - Bharat Forge Ltd, and Computer Age Management Services Ltd (CAMS).
Bharat Forge has experienced a significant correction of nearly 25 percent from its peak and has plummeted to the 200 SMA on the daily chart. Historically, the 200 SMA provided strong support, leading to an upward trend for the stock. Also, in the last few sessions, the counter has been gaining some traction, and the technical indicators showcased a positive crossover from the oversold terrain, signaling a potential reversal in the trend.
Hence, we recommend to BUY Bharat Forge around ₹1,460-1,450, keeping a stop loss of ₹1,390 for a potential Target of ₹1,560-1,580.
CAMS firmly withheld its sturdy technical structure amidst the rising uncertainty, showcasing resilience. From a technical standpoint, the counter seems to be in a cycle of higher highs – higher lows on a broader time frame and is comfortably hovering above all its EMAs in the daily time frame. On the oscillator front, 14-period RSI and MACD both indicate a buoyant development, adding a bullish quotient in the counter.
Hence, we recommend to BUY CAMS around ₹4,650, keeping a stop loss of ₹4,480 for a potential Target of ₹4,960-5,000.
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.
