Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, displayed sideways movement on Thursday as investors kept a close watch on the Bihar assembly elections. The results of the Bihar elections are crucial due to the central government’s reliance on coalition partners.
The indices experienced a turbulent session, where robust quarterly results from State Bank of India, Mahindra & Mahindra, and Britannia Industries, along with the inclusion of four local firms into a significant MSCI index, slightly boosted market sentiment.
Nevertheless, the Nifty 50 fell 0.20% and was trading at 25,550 . 65, while the BSE Sensex increased by 0.03% to hit 83,435.72 as of 14:19 IST.
Market analysts pointed out that although global markets are experiencing a substantial rally spurred by advancements in artificial intelligence (AI), Indian markets have been trailing behind. This underperformance has been linked to slow corporate earnings and the lack of major AI-related companies within the domestic market.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
Nifty 50 continued to show weakness on Thursday amidst volatility and is currently trading lower by 55 points. Nifty 50 has been in a down trend over the last 5-6 sessions as per negative intraday pattern. After the decisive breakout of down sloping trend line hurdle on the weekly chart at 25,500 in the mid part of Oct, Nifty 50 is now sliding down towards the previous broken support of around 25,500-25,400 levels as per change in polarity. Immediate resistance is placed at 25,700.
Technical Picks: Stocks to buy in the short-term
Nagaraj Shetti of HDFC Securities recommends these two stocks to buy in the short-term – Dabur India Ltd, and Rail Vikas Nigam Ltd (RVNL).
Buy Dabur at ₹520.30, Target of ₹545, Stoploss at ₹505, Timeframe 1 week.
Dabur share price has witnessed a sharp bounce back after the formation of higher bottom recently. Presently the stock price is in the attempt of upside breakout of cluster resistance around ₹512-515 levels. The overall chart pattern looking positive.
Sell RVNL at ₹321.35, Target of ₹305, Stoploss at ₹330, Timeframe 1 week.
The Railway stock has been in a sideways range with weak bias over the last couple of weeks and has witnessed a decisive breakdown of the support on Thursday. The overall chart pattern indicates negative bias and one may expect some more weakness in the short term.
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.
