Stock market today: Domestic stock markets began the day flat on Thursday, with expectations that investor sentiment will improve as India and the UK are set to officially announce the Free Trade Agreement (FTA) later today.
This anticipated optimism is bolstered by recent global events, such as the trade agreement between the US and Japan.
At 11:59 IST, the Nifty 50 index was trading at 25,038 . 15, down by 178.35 points or 0.73%, whereas the BSE Sensex was trading at 82,090.44, reflecting a slip of 644.59 points or 0.79%.
Analysts indicated that investors are optimistic about the India-UK FTA and the US-Japan agreement that reduced tariffs. The overall sentiment is positive, and any additional trade news before August 1 could stimulate a market surge.
According to Nagaraj Shetti of HDFC Securities, is in the process of forming a new lower top of the pattern. Shetti recommends two stocks to buy in the short-term. Here’s what Shetti says about the overall market.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
After showing a sustainable upmove towards the crucial overhead resistance of 25,250 levels yesterday, Nifty 50 was not able to surpass the said hurdle so far today and slipped into weakness. The negative chart pattern like lower highs and lows is still intact and presently Nifty 50 is in the process of forming a new lower top of the pattern. However, a decisive move only above 25,250-25,300 could negate this bearish sentiment. Immediate support is placed at 25,050 levels.
Technical Picks: Stocks to buy in the short-term
Nagaraj Shetti of HDFC Securities recommends these two stocks to buy in the short-term – K.P.R. Mill Limited, and Fertilizers and Chemicals Travancore Ltd (FACT).
Buy KPR Mill at ₹1,245.50, Target at ₹1,310, Stoploss at ₹1,215, Timeframe 1 week.
After witnessing a range bound action in the last few weeks, the stock price witnessed a sustainable upside breakout recently and closed higher. Volume has started to expand during upside breakout in the stock price and daily RSI shows positive indication.
Buy FACT at ₹978.50, Target at ₹1,035, Stoploss at ₹945, Timeframe 1 week.
The stock price has bounced back sharply on Thursday after a healthy downward correction of the last one week. We observe formation of higher bottom at the swing low of ₹940 levels recently. Volume pattern and momentum oscillators are indicating positive bias for the stock price ahead.
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.
