Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, fell on Thursday, pressured by HDFC Bank following the resignation of its part-time chairman, alongside rising crude oil prices and a cautious Federal Reserve impacting global markets.
As of 12:25 IST, the Nifty 50 was down 2.24% at 23,245 . 95, while the Sensex declined 2.16% to 75,043.94.
HDFC Bank, the leading private lender in India and the most heavily weighted stock in the indices, plummeted by as much as 8.66%, marking its largest intraday decline in more than two years, after part-time chairman Atanu Chakraborty resigned, citing conflicts over “values and ethics.”
Other Asian stocks fell by 2.3%, following a significant decline in Wall Street overnight, as rising crude prices and a more aggressive stance from the Federal Reserve fueled a global market selloff.
Iran targeted multiple energy facilities across the Middle East on Wednesday, in retaliation for an attack on its South Pars gas field, representing a major intensification of the conflict and driving crude prices to $112 per barrel.
The Fed decided to keep interest rates steady on Wednesday but adopted a hawkish tone, highlighting the risks associated with the Iran war that have led to increased energy prices.
Elevated US interest rates make emerging markets like India less appealing to foreign investors.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
After showing a sustainable bounce back in the last three sessions, Nifty 50 tanked on Thursday on the backdrop of weak global cues and is currently trading lower by 515 points.
After the formation of series of lower tops and bottoms over the last one month, Nifty 50 seems to have formed a new lower top on Wednesday at 23,862 levels. The current weakness is expected to form a double bottom or a slight lower bottom around the support of 22,900 levels in the near term. Immediate resistance is at 23,400.
Technical Picks: Stocks to buy in the short-term
Nagaraj Shetti of HDFC Securities recommends these two stocks to buy in the short-term – Ather Energy Ltd, and RBL Bank Ltd.
Buy Ather Energy Ltd at ₹757, Target at ₹815, Stoploss at ₹725, Timeframe 1 week.
After showing a range bound action in the short term, the stock price has witnessed sharp upmove in the last few sessions. The stock price is currently placed at the edge of decisive breakout of important resistance band around ₹755-760 levels. Volume has started to rise during upmove in the stock price and daily RSI shows positive indication.
Sell RBL Bank Ltd at ₹293.65, Target at ₹277, Stoploss at ₹303, Timeframe 1 week.
After witnessing a consolidation movement in the last 3-4 sessions, the banking stock has declined on Thursday. Presently, the stock price is placed at the edge of breakdown of key support at ₹290 levels. A decline below ₹290-288 levels is likely to open sharp weakness in the near term. Daily and weekly RSI shows negative 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.
