Stock market today: India’s stock indices surged by over 3% and were set to record their best session in nearly a year on Monday after the country established a ceasefire with Pakistan over the weekend, following the most severe cross-border conflicts in almost thirty years.
As of 14:14 IST, the Nifty 50 and the Sensex increased over 3.5% each, reaching 24,899.80 and 82,315.60, respectively, positioning themselves to recover the 1.5% loss sustained after India’s strikes on Pakistan the previous Wednesday.
Analysts believe that the ceasefire agreement between India and Pakistan has helped reduce regional tensions, which is always advantageous for domestic stock markets. Additionally, news about a reduction in hostilities between Russia and Ukraine, with both parties agreeing to engage in peace talks in Istanbul, has alleviated global uncertainty and enhanced risk appetite across markets.
Vinay Rajani of HDFC Securities recommends Zensar Technologies, NBCC, and Maruti Suzuki shares in the short-term. Also, check out his views on the overall market.
Market Views – Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities
Nifty 50
After a huge gap up of more than 400 points, Nifty 50 extended its gain and surpassed the important resistance of its previous swing high of 24,589. On last Friday, Nifty 50 formed “Inverted Hammer” candlestick pattern on the daily chart after registering a running correction of more than 650 points from the swing high of 24,589. Inverted hammer was the first sign of a bullish trend reversal, which is confirmed by today’s gain in the Nifty 50. By not breaching the previous swing low of 23,847, Nifty 50 has managed to hold its positional trend as bullish.
The inverted head and shoulder pattern observed couple of weeks back on weekly line chart of Nifty 50 also remains intact with its bullish implications. Next resistance for Nifty 50 is seen at 24,857, which happened to be December 2024 swing high. Above 24,857, Nifty 50 could extend its rally towards 25207. Supports for the Index have shifted up at 24,378 and 24,000.
Technical Picks: Stocks to buy in the near-term
Vinay Rajani of HDFC Securities recommends these three stocks in the near term – Zensar Technologies Ltd, NBCC (India) Ltd, and Maruti Suzuki India Ltd.
Buy Zensar Technologies (Rs. 746) | Target Rs. 820 | Stop-loss Rs. 700
Zensar Tech share price has broken out from the downward sloping trendline on the daily chart. Stock price has broken out from bullish “flag” pattern on the daily chart. Stock price is trading above 20-, 50- and 200-days EMA. Daily RSI has reached above 50, indicating a sustainable up trend. Daily MACD is now placed above signal and equilibrium line.
Buy NBCC(Rs. 97): | Target Rs. 106| Stop-loss Rs. 92
NBCC share price has broken out from bullish “Flag” pattern on the daily chart. Stock price has found support near 200 DEMA. Stock price is now placed above 20-, 50- and 200-days EMA. Daily RSI has reached above 50, indicating a sustainable up trend. Daily MACD is now placed above signal and equilibrium line.
Buy Maruti Suzuki India (Rs. 12,550): | Target Rs. 13,200 | Stop-loss ₹12,000
Maruti Suzuki share price has been forming higher tops and higher bottoms on the daily chart. Primary trend has been bullish as stock is placed above all key moving averages. Weekly RSI has reached above 50, indicating a sustainable up trend. Indicators and oscillators have been showing strength in the current uptrend.
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.
