Stock Market News: On Thursday, the domestic benchmark indices, Nifty 50 and Sensex, saw a positive opening, driven by the strong performance of information technology stocks. This upward momentum was significantly influenced by the encouraging remarks about US economic growth from Federal Reserve Chair Jerome Powell.
Sensex climbed 242.54 points to 81,198.87 in early trade; Nifty 50 was up 72.5 points to 24,539.95.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the Dow moving past 35,000 for the first time serves as a strong indicator of the ongoing bullish rally in the US market. He emphasized that the current macroeconomic environment in the US—characterized by robust growth and decreasing inflation—provides solid support for this upward trend.
Furthermore, comments made by Fed Chairman Jerome Powell, stating that the “economy is in remarkably good shape,” have boosted confidence among US investors. The positive shift in Foreign Institutional Investors (FIIs) turning buyers is also a constructive sign for the markets, especially for large-cap stocks. In addition, the resilience of banking stocks has the potential to propel the Bank Nifty towards its all-time highs, which, in turn, could support further gains in the Nifty 50 as well.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The Indian equity markets showed optimism, as the benchmark index strengthened its position above the recent swing high, aiming to counter the ongoing formation of lower highs on the daily time frame. Although the critical resistance level of 24,500 was significant, the bulls made two attempts that were ultimately unsuccessful. The Nifty 50 index closed around 24,470 levels, experiencing a modest gain of 0.04 percent.
The overall outlook appears to be bullish, as the benchmark index has consistently stayed above all its key moving averages. However, the formation of a ‘Doji’ candlestick at this critical juncture indicates indecisiveness, suggesting that a cautious approach is warranted. While there have been minimal changes in price activity, recent intraday developments have clearly shown the strength of the resistance level.
Support is currently observed around 24,350, aligning with the 50-DEMA, followed by 24,280-24,250 in the same timeframe. Conversely, a decisive breakthrough above 24,550-24,600 is anticipated to give significant momentum to the Nifty 50 index, potentially reaching higher targets of 24,800 and subsequently the 25,000 mark in the near future.
The mid and small-cap sectors have played a significant role in recent market movements, making it interesting to watch how these areas develop further. While we remain cautiously optimistic about these trends, we advise maintaining proper risk management, particularly as the mid-cap index approaches 61.80% of its previous decline.
Stocks To Buy on Thursday – Osho Krishan
On stocks to buy on Thursday, Osho Krishan recommended two stocks – Paras Defence and Space Technologies Ltd, and Bank of Maharashtra.
Paras Defence and Space Technologies Ltd
Paras Defence experienced a significant correction from its peak of 1,593 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 shown a ‘Sloping trendline’ and a ‘Double Bottom’ formation on the daily charts. Additionally, the emergence above all its significant DEMAs attracts potential upside movement in the near period.
Hence, we recommend to BUY Paras Defence around 1,110-1,100, keeping a stop loss of 1,050 for a potential Target of 1,200-1,240
Bank of Maharashtra
Bank of Maharashtra has seen a strong resurgence from the lows of the 49 subzones in the last couple of trading weeks and has negated the formation of lower lows on the daily time frame. Additionally, the counter has witnessed a breakout from a ‘Double Bottom’ formation backed by robust volumes, suggesting strong traction in the counter. Also, from a risk-reward point of view, the counter is placed in a lucrative zone.
Hence, we recommend to BUY Bank of Maharashtra around 58-56, keeping a stop loss of 54 for a potential Target of 64-66.
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.
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