Stock market today: Equity benchmark indices, including the Sensex and Nifty 50, fell in early trading on Friday, led by declines in Bajaj Finance and ongoing withdrawals by foreign investors. Additionally, a negative trend in Asian markets further affected investor sentiment.
The 30-share Sensex fell by 407.45 points to reach 81,776.72 in the early session. The 50-share Nifty 50 decreased by 144.3 points, bringing it down to 24,917.80. Foreign Institutional Investors (FIIs) sold off equities amounting to ₹2,133.69 crore on Thursday, as per exchange data. In contrast, Domestic Institutional Investors (DIIs) purchased shares worth ₹2,617.14 crore.
Market experts suggest that the market outlook in the short term has weakened. Continued FII selling, totaling ₹11,572 crore over the past four trading days, is expected to impact the market negatively.
On the technical front, Rajesh Palviya of Axis Securities believes that from current levels, the short-term outlook for Nifty 50 remains cautious with an expected supply zone of 25,300-25,500 levels. Palviya recommends three stocks to buy. Here’s what he says about the overall market.
Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities
Nifty 50
On the daily and hourly charts, the index is trending lower, forming a series of lower tops and bottoms, indicating negative bias. Nifty 50 is sustaining below its 20-day SMA, which signals a short-term downtrend. From current levels, the short-term outlook remains cautious with an expected supply zone of 25,300-25,500 levels. On the downside, the short-term support is placed around 25,000-24,900 levels; any violation of the same may cause further downside towards 24,500 levels. The daily strength indicator RSI has turned bearish and sustained below its reference lines, indicating a loss of strength.
Jindal Steel & Power Ltd Cmp: ₹1,005
On the daily and weekly charts, the stock has confirmed a higher top and bottom formation, indicating bullish sentiments. It has also confirmed a “multiple resistance zone” of 990 levels on a closing basis, along with huge volumes, which signifies increased participation. The daily “band bollinger” buy signal indicates increased momentum. The stock is sustaining above its 20, 50, 100 and 200-day Simple Moving Averages (SMA), reconfirming the bullish trend.
Investors should consider buying, holding, and accumulating this stock. Its expected upside is 1085-1200, and its downside support zone is the 980-960 levels.
With the current close, the stock has decisively surpassed the past 6-7 months’ multiple resistance zone of 1520 levels, along with huge volumes indicating a strong comeback of bulls. The daily and weekly “band Bollinger” buy signal indicates increased momentum. The stock is sustaining above its 20, 50, 100 and 200-day Simple Moving Averages (SMA), reconfirming the bullish trend. The daily, weekly and monthly strength indicator, Relative Strength Index (RSI), is in favourable territory, indicating rising strength across all time frames.
Investors should consider buying, holding, and accumulating this stock. Its expected upside is 1650-1760, and its downside support zone is the 1500-1440 levels.
On the daily chart, the stock has broken out past five months’ “consolidation range” (157-135) on a closing basis. This breakout is accompanied by huge volumes, which signify increased participation at the breakout zone. The stock is sustaining above its 20, 50, 100 and 200-day Simple Moving Averages (SMA), reconfirming the bullish trend. The daily, weekly and monthly strength indicator, Relative Strength Index (RSI), is in favourable territory, indicating rising strength across all time frames. The daily and weekly “band Bollinger” buy signal indicates increased momentum.
Investors should consider buying, holding, and accumulating this stock. Its expected upside is 170-185, and its downside support zone is 155 -149 levels.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
