Stock Market News: The domestic benchmark indices, Sensex and Nifty 50, started Thursday's trading session higher despite selling pressure on the main international stock markets. At opening, both indexes showed slight rises.
The opening of the Nifty 50 index saw a rise of 51.80 points, equivalent to 0.21%, reaching 25,250.50 points. Meanwhile, the Sensex opened at 82,470.35 points with a gain of 117 points, representing a 0.14% increase..
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that the US market's stability lays the stage for India's surge to resume. However, a breakout that would raise the benchmark indices to far higher levels is not possible. Elevated levels will prompt selling by FIIs, so moderating the rise.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The weakness in the global bourses led to a gap-down start for our markets, snapping the 14-day winning streak for Nifty 50. However, the recent fall could be considered as a breather with no major alterations to the ongoing trend. Furthermore, the unwavering strength of the bulls demonstrated throughout the session reflects the positive sentiment in the domestic market.
From a technical standpoint, the pullback post the setback construes an optimistic scenario, with strong support being seen around the 25,100-25,080 spot zone for Nifty 50, followed by the sacrosanct support of the 25,000 mark in the comparable period. On the higher end, the highs of 25,300-25,350 is now expected to be seen as a resistance and an authoritative breach could only open the next leg of the rally towards 25,400-25,500.
Going ahead, it is crucial to stay vigilant about global developments, as they can significantly impact the intermediate trend for our markets. While our domestic market shows strength, it is essential to proceed thoughtfully, adopt a practical approach, and focus on selective stock choices for superior performance.
On stocks to buy on Thursday, Osho Krishan recommended two stocks - Aether Industries Ltd, and Biocon Ltd.
Aether Industries has demonstrated impressive gains in the recent trading session, backed by robust volumes. The counter is now consistently trading above all its major EMAs on the daily time frame. The recent upward momentum has been underpinned by positive crossovers of the moving averages and is on the verge of a consolidation breakout. This suggests a significant potential surge in the near future.
“Hence, we recommend to BUY Aether Industries around ₹920, keeping a stop loss of ₹870 for a potential target of ₹1,000,” said Krishan.
Biocon has witnessed a breakout, accompanied by a robust surge in trading volumes during the recent trading session. The stock is currently positioned above all of its major EMAs on the daily timeframe, hovering in the cycle of higher highs—higher lows. In addition, technical indicators are very much in line with the ongoing momentum, indicating a potential for sustained move in the upcoming period.
“Hence, we recommend to BUY Biocon on dips of ₹370-360, keeping a stop loss of ₹340 for a potential target of ₹400-410,” said Osho.
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.
