Stock market today: The domestic benchmark indices, Sensex and Nifty 50, experienced gains on Thursday, fueled by growing optimism regarding the trade agreement between the US and India. The markets were further boosted by new foreign fund inflows and increased IT share purchases during the trading session.
On Thursday, the Nifty 50 was just 0.7% shy of its all-time high, tapping an intraday peak of 26,099.70. The Sensex reached a maximum of 85,272.40, which is roughly 0.8% below its historical high. Last September, the Nifty 50 established a record high of 26,277.35, while the Sensex also hit its peak at 85,978.25 during that timeframe.
Analysts credited the surge to news about a forthcoming meeting between President Donald Trump of the United States and Prime Minister Narendra Modi, in addition to hopes for a trade agreement between the US and India.
However, the key benchmark indices, witnessed some profit booking where, at 14:14 IST, the Nifty 50 index traded at 25,955 . 65, while the BSE Sensex was trading at 84,765.47.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
Nifty 50 opened with big-bang after a holiday on Thursday and continued its gains in the early to mid-part of the session. After opening with sharp upside gap of 189 points the market shifted into a range bound action with positive bias after the opening. Post breakout of crucial hurdle at 25,500 levels last week, Nifty 50 has been continuously moving up, which indicates a decisive turnaround on the upside. The underlying trend of Nifty 50 continues to be positive and the next upside targets to be watched around 26,300. Immediate support is placed at 25,900.
Technical Picks: Stocks to buy in the short-term
Nagaraj Shetti of HDFC Securities recommends these two stocks to buy in the short-term – IDFC First Bank Ltd, and Central Bank of India.
Buy IDFC First Bank at ₹79, Target at ₹85, Stoploss at ₹76, Timeframe 1 week.
The midcap banking stock has witnessed a decisive breakout of crucial down sloping resistance recently around ₹73 and is currently trading higher. We observe bullish pattern like higher tops and bottoms on the daily chart. Volume has expanded during upmoves and RSI shows positive indication.
Buy Central Bank of India at ₹39.50, Target at ₹42, Stoploss at ₹38, Timeframe 1 week.
The stock price has witnessed a sharp breakout of triangle type pattern on the weekly chart this week and is now trading higher. The hurdle of weekly 10/20 period EMA has also been surpassed on the upside. Volume pattern and daily/weekly RSI shows positive indication for the near 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.
