Stock market today: The Indian stock market started off flat on Friday as ongoing weak investor sentiment persisted due to continued selling by Foreign Portfolio Investors (FPIs) and a lackluster earnings season in the IT sector.
The Nifty 50 index commenced at 25,108.55, experiencing a slight decline of 2.90 points or 0.01 percent. At the same time, the BSE Sensex opened the session at 82,193.62, dropping by 65.62 points or 0.08 percent.
Analysts attributed the market’s weak opening to the current disappointing earnings reports.
On the technical front, Rajesh Palviya of Axis Securities, believes Nifty 50’s short-term outlook remains cautious with expected upside of 25,400-25,500 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 expected upside of 25,400-25,500 levels. On the downside, the short-term supports are placed around 25,000-24,900 levels. The daily strength indicator RSI has turned bearish and sustained below its reference lines, indicating a loss of strength.
On the daily and weekly charts, the stock has experienced continuation of the prior uptrend, forming a series of higher tops and bottoms. In addition, the weekly prices have also confirmed a “down-sloping trendline” breakout at 3,400 levels, which signals a strong comeback of bulls. The past 3-4 weeks’ rising volumes signify increased participation. The stock is sustaining above its 20, 50, 100 and 200-day Simple Moving Averages (SMA), reconfirming the bullish trend. The daily and weekly 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 ₹3,700-3,950, and its downside support zone is the 3,450-3,400 levels.
On the daily chart, the stock has confirmed a “multiple resistance zone” of 1760 levels on a closing basis, which shows bullish sentiments. Huge rising volumes on breakout signify 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. The daily and weekly 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 ₹1,900-1,950, and its downside support zone is the 1,720-1,700 levels.
On the daily chart, the stock has surpassed the 5-6 months multiple resistance zone of 400 levels on a closing basis. Huge rising volumes on breakout signify increased participation. The stock is sustaining above its 20, 50, 100 and 200-day Simple Moving Averages (SMA), reconfirming the bullish trend. The daily and weekly 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 ₹430-450, and its downside support zone is the 390-385 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.
