The Indian stock market showed a positive trend on Thursday, supported by optimism for a possible trade agreement between India and the US expected in November.
However, analysts cautioned that the markets are currently overbought and may face some corrections in the near future.
At 12:39 IST, the Nifty 50 index traded at 25,508 . 80, up by 185.80 points or 0.73%, while the BSE Sensex was trading at 83,185.41, gaining 579.98 points or 0.70%.
Investor sentiment remained upbeat amid growing expectations of a favourable outcome in the upcoming trade talks between India and the United States.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
Nifty 50 witnessed a sharp follow-through upmove so far today and is currently trading higher by 140 points. The short-term hurdle of down sloping trend line has been broken on the upside at 25,400 and the Nifty 50 is currently trading higher. Bullish pattern like higher highs and higher lows is intact as per daily chart.
The underlying trend of Nifty 50 continues to be positive. A decisive move above 25,500 is likely to pull Nifty 50 towards the next upside resistance of around 25,700-25,800 in the near term. Immediate support is placed at 25,200.
Technical Picks: Stocks to buy in the short-term
Nagaraj Shetti of HDFC Securities recommends these two stocks to buy in the short-term – Prestige Estates Projects Ltd, and Sequent Scientific Ltd.
Buy Prestige Estates Projects at ₹1,693; Target at ₹1,780; Stoploss ₹1,645; Timeframe 1 week
Prestige Estates Projects share price has been in a renewed buying momentum in the last couple of weeks. It witnessed a decisive breakout of down sloping trend line around ₹1,620 and is currently trading higher. Bullish pattern like higher tops and bottoms is intact.
Buy Sequent Scientific at ₹215; Target at ₹227; Stoploss at ₹210; Timeframe 1 week
Sequent Scientific share price has been in sharp up trended movement over the last one month. We observe larger degree bullish pattern like higher tops and bottoms on the weekly chart. Currently placed on the verge of sharp breakout of down sloping trend line hurdle around ₹217-218. Volume pattern and RSI shows positive indication.
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.
