Indian stock market: Market benchmarks—the Sensex and the Nifty 50—continued their losing streak for the fourth consecutive session. The Sensex dropped by 280 points, or 0.35 per cent, closing at 80,148.88. Similarly, the Nifty 50 ended the day down by 66 points, or 0.27 per cent, at 24,413.50. Despite these declines, the mid- and small-cap segments saw notable gains.
“Nifty witnessed a post-budget impact and traded in negative territory throughout the session. The index closed with a loss of 66 points at 24415 levels. India Vix further declined by 7.8% at the 11.76 zone, indicating reduced participation. Sector-wise it was a mixed bag with buying seen Oil &Gas, Consumer Durables, Pharma and Realty amid relief measures announced in the Union Budget. Markets experienced some decline after investors' mood turned soured post an unexpected increase in short and long-term capital gains. With markets at new highs, the budget further strengthens India’s macroeconomic position amid a fragile global economy. We anticipate the market to quickly discount the budget and shift its focus to the trajectory of corporate earnings growth, which has remained marginally below our expectations so far in 1QFY25. Thus, we expect the market to consolidate in the near term,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
Brokerage firm Motilal Oswal has recommended three stocks to buy this week with decent upside move - ICICI Bank, Tata Consumer and Tata Consultancy Services (TCS).
ICICI bank is in overall uptrend and forming higher highs – higher lows structure from last eight months. On weekly scale as well the structure of higher lows is intact from last six weeks and gave highest weekly close. On daily scale the stock retested the previous breakout zone and base of the stock is shifting higher. Stock has been huge outperformer within banking space and likely to scale to new record highs in coming sessions.Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 1210 levels on closing basis for a new life time high target towards 1350 zones.
Tata consumer has formed a strong bullish candle on monthly scale and gave a range breakout on weekly scale after sixteen weeks. On daily scale as well it gave range breakout and managed to close above 1175 zones. Momentum indicator RSI is positively placed which may take prices higher. Buying is visible across FMCG space which may support the ongoing up move. Thus recommending to buy the stock with keeping stop loss at 1150 for an upside target towards 1280 zones.
TCS gave range breakout on weekly scale after eighteen weeks and formed a bullish candle with highest weekly close. On daily scale the stock has seen sharp upmove but holding well above its hurdle zone 4200 levels. Good buying interest is visible across IT heavyweights which may support the ongoing up move.Momentum oscillator Relative Strength Index (RSI) is also moving higher which indicates momentum to continue in coming sessions.Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 4180 levels on closing basis for a new life time high target towards 4550 zones.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
