Stock market today: Indian stocks declined on Thursday, following the implementation of an additional 25% punitive U.S. tariffs on imports, with analysts cautioning about short-term market pressures.
The Nifty 50 dropped by 0.48% to 24,594 . 60 points, while the BSE Sensex fell by 0.54% to 80,344.39 as of 12:35 IST. Both the Nifty 50 and Sensex experienced approximately a 1% decline each on Tuesday, marking their steepest single-day percentage fall in three months, prior to the activation of the U.S. tariffs. The domestic markets were closed on Wednesday due to a local holiday.
Analysts indicate that markets are confronting considerable challenges after the U.S. imposed an extra 25% tariff on Indian products in response to New Delhi’s acquisition of Russian oil, bringing the total duties to 50%.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
The downside momentum continued in the market on Thursday and the Nifty 50 currently trading lower by 105 points amidst minor recovery note. The crucial support of previous opening upside gap of 18th August has been filled completely at 24,673 and Nifty 50 presently trading below the gap support, which is not a good sign.
The underlying trend of Nifty 50 remains weak and a decisive move below 24,600 could open next lower support of around 24,350 in the near term. Immediate resistance to be watched at 24,700.
Technical Picks: Stocks to buy in the short-term
Nagaraj Shetti of HDFC Securities recommends these two stocks to buy or sell in the short-term – Ola Electric Mobility Ltd, and Punjab National Bank (PNB).
Buy Ola Electric Mobility at ₹53.60, Target at ₹59, Stoploss of ₹50, Timeframe 1-2 weeks.
After showing minor downward correction recently, the stock price bounced back sharply in the last few sessions. We observe formation of higher bottom at ₹46.60 and the stock price is now advancing towards the bullish higher top formation. Volume pattern and RSI shows positive indication.
Sell PNB at ₹101.95, Target at ₹96, Stoploss of ₹105, Timeframe 1 week.
After showing a reasonable bounce back in the last few weeks, the PSU Banking stock (PNB) has started to decline from the highs this week. We observe a formation of bearish larger degree lower top formation at ₹108 recently, after a series of bullish higher tops and bottoms in the past. The stock price has broken below the crucial support of 200day EMA at ₹104. The volume has expanded during downside breakout in the stock price and the daily 14 period RSI shows negative indication.
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.
