Stock market today: Benchmark indices Nifty 50 and Sensex traded lower on Thursday, with several broad sectoral indices turning red after a weak positive opening due to profit booking. The Nifty 50 fell by 0.67% to 25,647 . 70, while the Sensex also decreased by 0.69% to 83,131.71 as of 12:08 IST.
The market breadth showed a mixed yet negative bias, as most sectoral indices traded in the red. Sectors such as banking, financials, metals, FMCG, and realty contributed to the downward sentiment, while there was selective strength in IT, pharma, healthcare, and midcap segments providing some support. The overall market tone remained cautious, characterized by rotational, stock-specific participation.
Both the Nifty and Sensex had gained approximately 1.4% over the last three sessions, buoyed by December-quarter earnings that generally met expectations, despite the impact of one-time charges related to the labour code.
Among the three heaviest stocks in the benchmark indices, private lenders HDFC Bank and ICICI Bank, along with oil-to-telecom conglomerate Reliance Industries, saw declines ranging from 0.3% to 0.8%.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
After showing a sustainable upmove in the last few sessions, Nifty 50 slipped into weakness on Thursday and is currently trading lower by 90 points. After opening higher, the market failed to sustain the gains and started to weaken soon after the opening. Currently showing minor recovery from the lows. The near-term uptrend of the market remains intact and the Nifty 50 is expected to find support around 25,700 levels in the short term. Any sustainable bounce from the lows could pull Nifty 50 towards the crucial overhead resistance of around 25,900-26,000 levels in the short term.
Technical Picks: Stocks to buy in the short-term
Nagaraj Shetti of HDFC Securities recommends these two stocks to buy in the short-term – Cochin Shipyard Ltd, and Hemisphere Properties India Ltd.
Buy Cochin Shipyard at ₹1,540, Target at ₹1,620, Stoploss at ₹1,499. Timeframe 1 week
The downward correction in the stock price seems to be over and we are observing an accumulation pattern at the lows. A decisive upmove above ₹1,560-1,570 levels is likely to open sharp breakout for the stock price in near term. Daily 14 period RSI shows positive indication.
Buy Hemisphere Properties India at ₹145.50, Target at ₹153, Stoploss at ₹140. Timeframe 1 week
The realty stock has witnessed a sharp upmove recently after the formation of higher bottom. The stock price is now in an attempt of decisive breakout of larger consolidation band as well as crucial 200-day EMA around ₹146-147 levels. Volume pattern and RSI shows positive indication.
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.
