Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, began the week on a high note on Monday, influenced by strong global cues and investor enthusiasm regarding the potential for better relations between the US and India under the administrations of Trump and Modi.
As of 11:33 IST, the Nifty 50 rose by 80.35 points or 0.33% to reach 24,825 . 35, while the Sensex climbed 244.66 points or 0.30% to stand at 80,954.85.
Investor sentiment was further lifted by a weak US jobs report, which has bolstered expectations for a rate reduction by the US Federal Reserve in their upcoming meeting on September 17. Additionally, the recent announcement of a GST rate cut contributed to the market’s positive outlook during the early trading session.
Market Views – Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities
Nifty 50
The Nifty 50 concluded the week at 24,741, a gain of 1.29% for the week. The index, however, continues to show indecision, trading within a choppy range of 24,400–25,000. This lack of clear directional conviction highlights the market’s sideways movement. A decisive breakout or breakdown from this range will likely set the tone for the coming weeks.
From an Elliott Wave perspective, the preferred wave count suggests that minor wave c is likely concluded as a truncated leg at 24,404. If the index remains above this level, a major wave iii/c is likely to have started. A decisive move above 25,000 would confirm this bullish setup, which could lead to sharp short covering towards 25,500. Conversely, a failure to hold above 24,404 could extend the corrective phase and invite increased selling pressure.
Bank Nifty has already completed the target of its Head & Shoulders pattern and even tested the 200-day EMA this week. The index is now hovering around this crucial average, with a positive divergence in the RSI indicating a potential for a rebound.
An intermarket divergence has also emerged between the Nifty 50 and the Nifty Midcap index, which often occurs at key market bottoms or tops and could signal a significant shift. A decisive close above 25,000 will validate 24,404 as a significant bottom for the Nifty 50.
Stock Picks
Buy BEML ( ₹4,100) | Target ₹4,280 | Stop-loss ₹3,900
BEML share price has broken out from inverted head and shoulder pattern on the daily chart. Price rise was accompanied by jump in volumes. Stock price is placed above all key moving averages, which indicates positional uptrend for the stock. Daily RSI has reached above 50, indicating sustainable up trend. Daily MACD is now placed above signal and equilibrium line.
Buy Dabur India ( ₹550) | Target ₹587 | Stop-loss ₹509
Dabur India share price has broken out from inverted head and shoulder pattern on the weekly chart. Price rise was accompanied by jump in volumes. Stock price has been sustaining above 50 DEMA and 200 DEMA. Weekly RSI has reached above 50, indicating sustainable up trend. Weekly MACD is now placed above signal and equilibrium line.
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.
