Stock market today: The Indian stock market commenced on a positive note on Thursday, buoyed by hope for a potential trade agreement between India and the US anticipated in November.
Nevertheless, analysts warned that the markets are currently in an overbought territory and might experience some corrections in the short term.
The Nifty 50 index opened at 25,394.90, an increase of 71.35 points or 0.28 percent, while the BSE Sensex began the day at 82,794.79, rising by 189.36 points or 0.23 percent.
Investor sentiment remained optimistic amid increasing hopes of a successful outcome in the forthcoming trade negotiations between India and the United States.
Osho Krishan of Angel One, said that the next few sessions ahead of the festive week, therefore, stands as a key juncture for the bulls, and traders should continue with the ongoing approach of buying on dips. Multiple lows seen around 25,150 in recent sessions will act as immediate support, while the 20DEMA, defended strongly on Tuesday near 25,050, will serve as a crucial structural base. Krishan suggests Tata Consultancy Services Ltd (TCS), and Bank of Baroda stocks to buy this Diwali.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
After two sessions of profit booking, prices have resumed their primary uptrend, moving past last week’s high. Despite the recent nervousness, we maintained a positive bias as Nifty 50 continued to hold firm above all short-term moving averages and key retracement levels. The broad-based buying witnessed today reinforces the bullish tone, and we now expect Nifty 50 to surpass the September swing high around 25,450 in the coming sessions.
A sustained move beyond 25,450–25,500 would further strengthen optimism, marking a breakout above the trend line connecting lower tops from the all-time high. This would effectively end the year-long consolidation phase and open the path towards the calendar-year high of 25,670 in the near term.
The next few sessions ahead of the festive week, therefore, stands as a key juncture for the bulls, and traders should continue with the ongoing approach of buying on dips. Multiple lows seen around 25,150 in recent sessions will act as immediate support, while the 20DEMA, defended strongly on Tuesday near 25,050, will serve as a crucial structural base. Given the supportive momentum and indicator setup, we expect any intraday declines to be bought into, with prices likely heading towards the mentioned resistance zone in the near term.
Stocks To Buy this Diwali- Osho Krishan
Stocks to buy this Diwali, Osho Krishan of Angel One recommended two stocks – Tata Consultancy Services Ltd (TCS), and Bank of Baroda.
Bank of Baroda – The PSU banking space has been in the spotlight since the beginning of the September series, showcasing strong relative strength. After a brief consolidation phase, Bank of Baroda formed a solid base around the 230 zone and delivered a sharp rally towards 265 within just a month. The chart setup remains robust, supported by sustained momentum and positive sectoral sentiment, indicating potential for continued outperformance.
Hence, we recommend buying in the 265–268 range for a potential upside target of 340, while maintaining a stop loss at 229.
TCS share price has experienced a substantial decline, having fallen nearly 25 percent in the current calendar year, and is currently situated near a significant historical support zone, indicating a favorable risk-reward ratio. The daily chart reveals a bullish divergence between the price action and the 14-period Relative Strength Index (RSI), which suggests an initial indication of a potential counter-trend. Additionally, the MACD histogram has reached historically low levels, representing extreme oversold conditions that may signal the potential for a significant reversal.
Moreover, TCS has underperformed compared to its respective index, indicating a deviation that may present an opportunity for a relief rally in the forthcoming period.
Hence, we recommend a BUY in TCS around 2,950 with a Stop Loss of 2,700 and a Target of 3,500-3,600.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
