Stock market today: India’s equity benchmarks began the day slightly altered on Thursday, as a decline in information technology stocks countered broader increases due to optimistic signs regarding trade negotiations with the United States.
In early trading, the Sensex rose by 153.82 points to reach 81,578.97, while the Nifty 50 gained 34.15 points, landing at 25,007.25.
Over the past six sessions, the Nifty 50 has increased by 1.6%, propelled by several factors, including cuts to India’s consumption tax, anticipated reductions in Federal Reserve interest rates, and improved sentiment surrounding India-US trade discussions.
Osho Krishan of Angel One thinks that the Nifty 50 index is at a crucial point, coinciding with the descending trendline created by the peaks of 25,669 and 25,153. Krishan recommends KFin Technologies Ltd, and Hindustan Aeronautics Ltd (HAL).
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The benchmark index has extended its winning streak for the sixth consecutive session, bolstered by participation from a broader market base. From a technical standpoint, the Nifty 50 index is situated at a critical juncture, aligning with the sloping trendline formed by the highs of 25,669 and 25,153. A sustained movement in this direction is anticipated to induce short covering in the forthcoming period, which is likely to augur well for the Bulls.
In terms of technical levels, a decisive advancement beyond the 25,000 threshold is anticipated to test the recent high of 25,153 on an intermediate basis. Should this occur, the subsequent visible resistance is likely to be encountered around 25,200-25,250 during the comparable period. Conversely, on the lower side, support is expected to adjust upward to the bullish gap of 24,900 on an intermediate basis, followed by critical technical support at the intersection of the 50-day and 20-day EMA around 24,800-24,770.
Looking ahead, thematic moves are evident, outperforming key indices. Given the developments in both global and domestic markets, attention should be directed toward themes that may outperform the broader indices. Furthermore, the index is likely to witness a breakout, warranting careful observation as market participants may respond to the aforementioned levels.
Stocks To Buy on Thursday- Osho Krishan
On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks – KFin Technologies Ltd, and Hindustan Aeronautics Ltd (HAL).
KFin Technologies
KFin Technologies share price is currently undergoing a notable correction, as evidenced by the consistent formation of lower lows and lower highs on the daily time frame chart. However, there are encouraging signs emerging in recent trading sessions; the stock has begun to gain momentum from an oversold position and has successfully moved above the 20-DEMA. Additionally, the breakout from a descending trendline on the daily charts points to the potential for a constructive relief rally in the near term.
Hence, we recommend to BUY KFin Technologies around ₹1,100, keeping a stop loss at ₹1,050 for potential upside Target of ₹1,180-1,200.
Hindustan Aeronautics Ltd (HAL)
HAL share price has demonstrated significant consolidation near its 200-DSMA over the past several trading weeks, resulting in the stock entering an oversold condition. Nevertheless, recent trading sessions indicate a resurgence in momentum, driven by short covering and bolstered by favorable technical indicators. The stock has surpassed all major EMAs on the daily charts. Furthermore, from a risk-reward perspective, the stock appears to be strategically positioned, presenting a positive outlook from a short-term investment standpoint.
Hence, we recommend to BUY HAL around ₹4,550-4,520, keeping a stop loss at ₹4,360 for potential upside Target of ₹4,850-4,900.
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.
