Stock market today: Benchmark indices Sensex and Nifty 50 commenced trading on a strong note on Thursday, driven by advancements in IT stocks following the US Federal Reserve’s decision to lower its key interest rate by 25 basis points and hint at the potential for two more rate cuts this year. By 12:00 IST, the 30-share Sensex surged 300 points to reach 82,993.29. The Nifty 50 increased by 90 points, landing at 25,418 . 85.
Both benchmark indices experienced significant gains at the start, influenced by favorable global signals and optimism stemming from the Fed’s accommodating stance. Analysts observed that the rate cut was anticipated, and this action is perceived as beneficial for emerging markets, although it may take a while for foreign portfolio investments in India to recover fully.
Experts suggest that foreign portfolio investments in India are likely to turn favourable within the next three months or coincide with new allocations at the beginning of the upcoming year in January.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
The upside momentum continued in the market on Thursday and Nifty 50 was trading higher by 95 points as of early part of the session. The opening upside gap of Thursday remains intact, which is in line with few such unfilled opening upside gaps of the last couple of weeks. This is positive indication. Having moved above the nearest hurdle of 25,350 levels, Nifty 50 is expected to move towards the next upside of 25,650-25,700 by in the next few sessions. Immediate support is placed at 25,300.
Technical Picks: Stocks to buy in the short-term
Nagaraj Shetti of HDFC Securities recommends these two stocks to buy in the short-term – KPIT Technologies, and Bank of Baroda shares to buy.
Buy KPIT Technologies at ₹1,319; Target at ₹1,400; Stop Loss at ₹1,280, Timeframe 1-2 weeks.
After showing an accumulation pattern over the last few months the IT stock has witnessed a sharp breakout of consolidation recently. The stock price has moved above the crucial hurdle of 200day EMA on Thursday. Volume pattern and daily RSI shows positive indication.
Buy Bank of Baroda at ₹250.50; Target at ₹265; Stoploss at ₹240, Timeframe 1-2 weeks.
The recent downward correction has resulted in a false downside breakout of larger range movement that resulted in significant reversal on the upside. The sharp bounce back of the last few sessions indicates possible breakout of consolidation around ₹250-255 levels soon. Volume has started to expand during upmove in the stock price and daily 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.
