Stock market today: The Indian stock markets are approaching their highest levels ever recorded in September 2024. They opened higher, and analysts believe the positive mood and global cues are benefitting early trading.
The Nifty 50 increased by 0.23% to reach 25,969 . 75, while the BSE Sensex rose by 0.29% to 84,807.93 as of 12:12 IST. With the domestic earnings season nearing its conclusion, the market is shifting focus back to favorable updates regarding the India-U.S. tariff resolution as it heads toward record highs, according to analysts.
Last week, both the Nifty 50 and Sensex gained around 1.6%, as stronger corporate earnings and a significant state election outcome fueled buying interest. The gains were primarily driven by IT and pharmaceutical stocks, with the U.S. government’s reopening boosting optimism for economic stability, according to analysts.
On a global scale, Asian markets displayed mixed results, following a contraction in Japan’s economy for the first time in six quarters due to the impact of U.S. tariffs.
Diminishing hopes for a U.S. rate cut in December, prompted by assertive remarks from leading Federal Reserve officials, also affected market sentiment.
Market Views – Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities
Nifty 50
Nifty 50 has resumed its uptrend after consolidating for three weeks, signaling renewed bullish strength. The index is currently trading above key moving averages, including the 20, 50, 100, and 200 DEMAs, reflecting positive momentum. A strong base has developed in the 25,700–25,750 zone, setting a short-term support, with positional support further below at 25,450. Immediate resistance levels are identified at 26,100 and 26,277, which could cap short-term advances unless decisively breached.
The symmetrical triangle breakout projects a positional target of 26,600 for Nifty 50, affirming the technical upside. A close below 25,450 would invalidate the current bullish setup, and long positions should be exited if this level fails. Bank Nifty appears robust on technical charts, with the next upside target seen around 60,000; support levels are positioned at 58,050 and 57,158.
Nifty Midcap100 Index has broken above its downward trendline and reached a new all-time high. The broader Nifty 500 index also shows improvement as it rebounds from past breakout zones. However, Nifty Microcap250 remains within a consolidation phase, where a move above 24,000 may trigger a falling wedge breakout on weekly charts.
Ratio charts suggest that Indian equity markets have likely ended their relative underperformance versus emerging markets and bullion instruments like Gold. Sectoral indices such as Defense, Capital Markets, Banking & Financials, and Oil & Gas are showing notable strength and leadership on technical charts.
Stock Picks
Buy Bank of Maharashtra (59.50) | Target ₹64 | Stop-loss ₹57
Bank of Maharashtra share price seems to have broken out from the recent consolidation with jump In volumes. Primary trend of stock has been bullish as it has been trading above key moving averages. PSU Bank index has been outperforming for last couple of months. Indicators and oscillators have been showing strength in the current trend.
Buy Rites Ltd(250) | Target ₹270 | Stop-loss ₹238
Rites share price has surpassed its 50 DEMA resistance with rising volumes. Railway stocks have showed some traction after long underperformance. Oscillators have exited the oversold zone on the short term charts, which indicates probable trend reversal for the stock.
Buy Mazagon Dock Shipbuilders (2,820) | Target ₹2,650 | Stop-loss ₹3,100
Mazdock share price has broken out from the downward sloping trend line on the weekly chart with rising volumes. Stock is placed above 20,50 and 200 DEMAs, indicating bullish trend on all time frames. Defense Sector index has broken out on the weekly charts. Indicators and oscillators have been showing strength in the current trend.
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.
