Stock Market News: The domestic benchmark indices, Nifty 50 and Sensex, witnessed a flat opening on Thursday amid selling pressure seen in other Asian markets. Despite this, a positive buying trend emerged, largely attributed to the return of foreign investors. The Nifty 50 index opened at 24,274.15, marking minimal gains, while the Sensex commenced the day at 80,281.64 points. The overall market sentiment appeared cautious, but the foreign investment inflows might provide some support moving forward.
Experts have observed that the net positive inflows from foreign investors this week suggest a resurgence of foreign portfolio investment (FPI). Concurrently, robust growth in the US economy continues to draw investments into US stocks.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, indicated that the market is expected to remain in a consolidation phase in the short term. A positive sign is the halt in continuous selling by foreign institutional investors (FIIs), which may boost confidence among retail investors to resume aggressive buying. However, he cautioned against excessive optimism. The strong dollar poses challenges for emerging markets, leading to a subdued outlook for FII buying activity. Additionally, large institutions are likely to adopt a "wait and watch" approach until there's more clarity on Trump's policies and their potential effects on trade and the global economy.
On the daily chart, prices are firmly maintaining a defined range following Monday’s gap-up. The low markers from the past three sessions have established a strong support zone between 24,100 and 24,150. Additionally, resistance levels are clearly evident between 24,350 and 24,400, indicating key points that traders should closely monitor for potential price action.
As we approach the monthly expiry, the price range between 24,100 and 24,400 will undoubtedly be pivotal. A sustained breakout beyond this zone is likely to generate significant momentum in the market. By closely monitoring these key levels, we position ourselves to leverage potential shifts in market sentiment effectively. In the meantime, trading within this defined range is a strategic choice that allows us to manage risk and seize opportunities. Stay alert and ready to adapt, as this proactive approach will empower us to navigate the market with confidence and success.
One of the key highlights of the day was HDFC Bank entering new territory, while the Bank Nifty closed near the upper end of its range from the past couple of months. Continued positive momentum in this major stock and the banking index could drive the next phase of market momentum, making them essential to monitor.
Although the index movement has remained within a defined range, the broader market has performed well, creating specific opportunities for traders. It’s important to focus on these opportunities as long as the benchmark index holds at the lower end of its trading range. Furthermore, with monthly settlement dynamics in play, some volatility is expected, so a selective and cautious approach is recommended.
On stocks to buy on Thursday, Osho Krishan recommended two stocks - Hindustan Aeronautics Ltd, and Jio Financial Services Ltd.
Hindustan Aeronautics Ltd (HAL) has experienced a significant correction from its peak of 5658 and has plummeted to the 200 SMA on the daily chart. Historical data suggests that this support level has previously acted as a strong foundation, leading to an upward trend for the stock. Moreover, the recent traction in the counter has showcased a sloping trendline breakout along with the technical indicators that have showcased a positive crossover from lows, suggesting continued momentum in the counter.
Hence, we recommend to BUY Hindustan Aeronautics Ltd, around ₹4,450-4,400, keeping a stop loss of ₹4,230 for a potential Target of ₹4,780-4,820.
Jio Financial Services Ltd has seen a decent correction and has entered a cycle of lower lows on the daily time frame chart. However, in recent periods, the stock has started gaining traction and showcased a positive divergence among technical indicators, and price action signifies a potential reversal in the counter. Also, from a risk-reward point of view the counter is placed at a lucrative zone.
Hence, we recommend to BUY Jio Financial Services around ₹325-320, keeping a stop loss of ₹310 for a potential Target of ₹355-360.
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.
