Stock market today: The domestic stock markets began on a lower note on Friday, affected by widespread sell-offs in global indices.
The Nifty 50 started at 26,109.55, showing a decrease of -82.60 points (-0.32%), while the BSE Sensex opened the session at 85,347.40, down -285.28 points (-0.33%).
Market sentiment was adversely affected by ongoing global downturns, as major international indices faced notable declines from their recent all-time peaks. The impact of global risk-off trends was clear across Asian markets as well, although analysts noted that India might not see as steep a drop.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The Indian equity markets commenced the trading session on a strong note, bolstered by positive global developments and the prevailing momentum within domestic markets from the previous session. The benchmark index exhibited robust momentum, achieving significant gains and registering record highs for the calendar year. Ultimately, the Nifty 50 index concluded the day on an optimistic note, positioned just below its all-time high at the 26,190 level, reflecting a gain of 0.54% for the day.
The substantial contribution of heavyweight counters like RIL and HDFC Bank has significantly influenced the ongoing market rally, fostering optimism among market participants. From a technical standpoint, the V-shaped recovery generated robust momentum, suggesting the prevailing trend to continue. Furthermore, with broader participation across the board, the near-term market outlook appears decisively bullish. On the levels front, the support base seems to have moved up to the 26,100-26,000 subzone, which is likely to cushion any near-term shortcomings, while the sacrosanct support is placed around the 25,800 zone from a positional perspective. On the higher end, with the recent closure, the lifetime high of 26,277 is likely to act as psychological resistance, and a breakthrough could pave the way for 26,500 in the near future.
As we progress, the prevailing sentiment remains strong, supporting the strategy of purchasing during market dips, which has historically demonstrated its effectiveness. Furthermore, given the current sectoral rotation, it is essential to exercise caution in stock selection while maintaining a bullish outlook on the markets.
Stocks To Buy on Friday- Osho Krishan
On stocks to buy on Friday, Osho Krishan of Angel One recommended two stocks – Samvardhana Motherson International Ltd, and Hindustan Unilever Ltd (HUL).
Samvardhana Motherson International Ltd
Samvardhana Motherson has demonstrated a significant resurgence following an extended period of consolidation on the daily chart. The increase in trading volumes, along with favourable technical indicators, supports this recent upward trajectory. The stock’s movement above the cluster of EMAs enhances its bullish outlook. Additionally, the RSI has indicated a positive crossover, followed by a favourable MACD histogram. From a risk-reward perspective, the stock is currently positioned attractively for potential investors.
Hence, we recommend a BUY in Samvardhana Motherson around ₹110 with a Stop Loss of ₹101 and a Target of ₹126.
Hindustan Unilever Ltd (HUL)
HUL has undergone a notable decline from its recent high of 2,700 subzones and is presently exhibiting some stability at a lower level. The counter has taken support from 200 DSMA and the 14-period RSI implies an initial indication of a potential counter-trend. Furthermore, a positive crossover between the MACD and its signal line has been observed, which supports a bullish outlook. From a risk-reward perspective, the current positioning of the stock is favourable, suggesting that it is poised to gain bullish traction in the near term.
Hence, we recommend a BUY in HUL around ₹2,400 with a Stop Loss of ₹2,335 and a Target of ₹2,550-2,560.
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.
