Stock Market News: Sensex and the Nifty 50, the domestic major indices, reached new all-time highs during Thursday's opening trading session. The Nifty 50 exceeded 24,350, and the Sensex surpassed 80,300. Strong global trends helped domestic markets maintain their recent pattern of setting new records on Wednesday.
Experts in the market predict that this current momentum will last in the near future. The release of the US Fed meeting minutes as well as the Composite PMI and Service data for the US, Europe, and Asia could trigger some reaction in Indian equities today.
Also Read: Sensex opens at record high above 80,300, makes shortest 10,000-point run from 70k to 80k
The geojit financial services chief investment strategist, Dr. V K Vijayakumar, believes that the market's optimistic undertone may eventually exceed the high valuations. Private large-cap banking companies are currently driving the rise; even with the recent surge, their valuations remain reasonable. The significant delivery-based purchase of banking equities by FIIs, spearheaded by HDFC Bank, accounts for a considerable portion of yesterday's ₹5484 crores in purchases. This delivery-based purchasing may continue for a few more days, strengthening the market.
The market will react to the Q1 numbers when they become available starting the next week. The financials should show positive results. Bajaj Finance's credit growth is outstanding, which is positive for the stock.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The gravity-defying move continued in the D-Street, with key indices soaring to new record highs. This optimism was led by the multi-month breakout in the banking giant HDFC Bank Ltd, accompanied by broader market participation which led the benchmark index to close just below the 24,300 mark, marking a 0.67% gain.
The market is clearly in a bullish phase, even with extended parameters. The thematic movers are certainly adding appeal to the market, as shown by a strong advance-to-decline ratio. From a technical standpoint, it is very challenging to determine resilience, especially when the undertone is highly robust. Still, with the prevailing overbought parameters, it is advisable to maintain proper risk management and keep booking profits at regular intervals. On the lower end, 24,100-24,000 withholds an intermediate cushion and a decisive breach below the same could only trigger some further cool-off in the benchmark.
Looking ahead, we maintain a positive outlook on the market's undertone. However, we advise caution and not to be swayed by daily developments. The potential for thematic moves is clear, and it's these opportunities that can lead to significant outperformance for traders, said Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One.
On stocks to buy today, Osho Krishan recommended two stocks - GIC Housing Finance Ltd, and Aarti Industries Ltd.
GIC Housing Finance Ltd has been in a consolidation phase for quite some time after the recent rally on the daily chart. However, in the last session, the counter gained decent traction and attempted to break through the consolidation phase, which was backed by robust volumes, suggesting an early sign of traction in the counter. On the oscillator front, MACD and 14-period RSI showcase a positive crossover, suggesting a lucrative risk-reward ratio in the counter from the short to medium-term time frame.
“Hence, we recommend to BUY GIC Housing Finance around ₹245-240 keeping a stop loss of ₹230 for a potential target of ₹270,” said Osho.
Aarti Industries Ltd witnessed a substantial increase in price in the last couple of trading sessions from the 21 DEMA on the daily chart. Additionally, the counter is witnessing a positive crossover of 21 DEMA to 50 DEMA, construing a positive development. From a technical standpoint, the counter has reversed from critical support and is likely to witness a ‘Cup and Handle’ pattern breakout on the daily time frame, construing a robust development. On the oscillator front, the 14-period RSI signals a continuation move, suggesting a potential upside journey in a comparable period.
“Hence, we recommend to BUY Aarti Industries around ₹710-705 keeping a stop loss of ₹680 for a potential target of ₹760,” advised Krishan.
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.
