Stock Market News: Due to profit booking in most sectors, the domesticbenchmark indices, the Sensex and the Nifty 50, began lower on Thursday. Paint manufacturer Asian Paints addedits losses after missing quarterly earnings estimates.
As of 9:51 IST, the S&P Sensex was down 0.12% to 80,808.34, while the Nifty 50 had gained 0.12% to 24,642.75.
The US presidential elections, which are scheduled for November, are an important factor that has begun to influence markets internationally, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. According to opinion surveys, the likelihood of a Trump presidency is rising. A Trump administration would mean increased import duties entering the US, especially on goods coming from China. Trump also supports a depreciating dollar.
From the standpoint of the Indian stock market, the assumption of a declining dollar would boost inflows into international portfolios, giving the market durability. This development together with Budget projections will impact the market. The change in IT stocks will be clearer in light of Infosys's results today.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The benchmark index showcased some volatility in the last session as Bulls seemed to lighten their positions ahead of the mid-week holiday. Despite the fluctuations, the Nifty 50 index settled with a modest gain of 0.11 percent, a tad above 24,600. There have been no significant developments in the benchmark index, indicating a lack of substantial price movement. Specifically, the price structure has remained stagnant within a narrow range. The Nifty's trading range has notably shrunk to 80 points, making it more challenging for traders to navigate. However, despite this, the broader markets have continued to see active participation, which has contributed to maintaining a positive undertone for market participants. The support zone for Nifty 50 is at 24,500-24,400, which is expected to see buyers stepping in when there are dips. However, it's not entirely clear if the trend will continue at higher levels. Nifty 50 has surpassed the Golden retracement level of 24,610, and the next key level to watch for is around 24,700-24,750.
Currently, market participants are closely monitoring sectoral rotation and thematic movers, which are playing a pivotal role in driving market trends. It is advisable to continue observing and analysing these movements until the key indices show a resurgence in momentum. Furthermore, it is essential to maintain a keen watch on global developments following the mid-week holiday, as these factors could significantly influence and establish the initial market sentiment.
On stocks to buy today, Osho Krishan recommended two stocks - Life Insurance Corporation of India, and Torrent Power Ltd.
Life Insurance Corporation of India witnessed a substantial increase in price in the last trading session to breach its previous swing high on the daily chart. Additionally, the counter witnessed strong traction in terms of trading volumes and has also witnessed a range breakout on the daily time frame chart. On the oscillator front, most of the indicators are strongly aligned with the momentum, adding a bullish quotient and suggesting a potential upside journey in a comparable period.
“Hence, we recommend to BUY Life Insurance Corporation of India around ₹1,100-1,080, keeping a stop loss of 988 for a potential Target of 1,280,” said Osho.
Torrent Power Ltd has been in a consolidation phase for quite some time after the recent rally on the daily chart. However, in the last couple of trading sessions, the counter gained decent traction which can be seen as an early sign of gaining momentum. The counter is placed firmly above all its significant EMAs, and the 14-period RSI firmly showcased a positive crossover, adding a bullish stance to the counter.
"Hence, we recommend to BUY Torrent Power Ltd around ₹1,520, keeping a stop loss of ₹1,455 for a potential Target of ₹1,630," 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.
