Stock market today: Indian equities opened largely unchanged on Thursday as the positive impact of lower crude oil prices following the US-Iran peace agreement was offset by weakness in information technology stocks after the US Federal Reserve maintained interest rates but signalled the possibility of a rate hike later this year.
However, the benchmark Nifty 50 was up 0.11% to 24,112 . 80, while the BSE Sensex rose 0.12% higher to 77,248.53 as of 10:18 IST.
The muted start follows a strong four-session rally that saw the Nifty 50 and Sensex gain about 4% and 4.5%, respectively, supported by easing oil prices and improving global sentiment.
Brent crude declined around 1.7% to $78.2 per barrel after the United States and Iran signed an interim agreement aimed at ending hostilities, raising hopes of improved energy supplies and lower inflationary pressures.
Market breadth remained positive, with 14 of the 16 major sectoral indices trading higher. Broader markets also outperformed, with the Nifty Midcap and Smallcap indices advancing 0.2% and 0.4%, respectively.
However, IT stocks came under pressure, with the sector index falling 1.5%. Investor sentiment was weighed down by the Fed’s commentary, which reinforced expectations of a possible rate hike in September.
A higher US interest-rate environment typically reduces the attractiveness of emerging markets such as India to foreign investors. It can also dampen spending across key overseas markets, a factor closely watched by investors given the heavy dependence of Indian IT companies on revenue from the United States.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The benchmark index has extended its bullish momentum, registering five consecutive sessions of gains and reinforcing the positive market sentiment. The technical setup has turned decisively constructive following the index’s successful re-reclaim of the intermediate swing high, effectively negating the earlier lower-high formation. Furthermore, sustained trading above the 20 & 50-DEMA underscores the strength of the prevailing uptrend.
Market breadth has also improved significantly, with broader participation lending credibility to the ongoing rally and indicating the potential for continued strength in the near term. From a technical perspective, the 24,000-23,950 zone is expected to provide immediate support against any short-term weakness. Additionally, the bullish gap area around 23,800 is likely to serve as strong support and remain sacrosanct within the current market structure. On the upside, the index faces its next key resistance near the bearish gap between 24,250 and 24,280. A decisive move beyond this hurdle could pave the way for an advance towards the 24,500-24,600 zone.
Overall, the outlook remains firmly bullish. Any corrective decline towards the identified support levels is likely to be viewed as a buying opportunity, with market participants expected to capitalise on dips within the prevailing uptrend.
Going forward, market participants are likely to witness heightened volatility ahead of the US Federal Reserve’s policy outcome. Additionally, developments surrounding the anticipated discussions and potential agreement between Iran and the United States later this week could influence global risk sentiment. In light of these event-driven triggers, traders are advised to maintain lighter positions and adopt a stock-specific approach.
Stocks To Buy on Thursday- Osho Krishan
On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks – Bank of Baroda, and Siemens Energy India Ltd.
Bank of Baroda has been trading firmly above its key EMAs, post the resurgence from lows of 250 subzone in recent period. The prevailing technical structure remains constructive, with multiple crossovers within the EMAs, indicating potential for continued upward momentum. The stock has witnessed a ‘Rounding bottom’ formation and seems poised to continue its northward journey. Additionally, the positive crossover in 14-day RSI and the MACD Histogram suggests strong alignment with the price action.
Hence, we recommend a BUY in Bank of Baroda around ₹275-270 with a Stop Loss of ₹250 and a Target of ₹300-320
Siemens Energy India continues to exhibit a strong secular uptrend, characterised by a consistent pattern of higher highs and higher lows across multiple time frames, underscoring robust price strength. The stock has recently rebounded from its 20-DEMA, indicating healthy demand at lower levels and reaffirming the prevailing bullish trend. With technical indicators aligning favourably with price action, the counter appears well-positioned to enter uncharted territory in the near term, supported by sustained positive momentum.
Hence, we recommend a BUY in Siemens Energy India around ₹3,700 with a Stop Loss of ₹3,400 and a Target of ₹4,100-4,200.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
