The ongoing fluctuations in the stock market, particularly in the Indian equity landscape represented by indices like Sensex and Nifty 50, have grabbed considerable attention amid various macroeconomic factors. On Wednesday, both indices experienced a downturn for the fourth consecutive session, driven by profit-taking amidst foreign fund outflows, particularly in banking, auto, and capital goods sectors. Investors remain wary as tensions over the US H-1B visa fees further exacerbate market sentiments. The Sensex closed at 81,715.63 with a loss of 386.47 points, while Nifty 50 dropped 112.60 points to settle at 25,056.90.
Current Market Setup
Analyzing the technical landscape, Rupak De, Senior Technical Analyst at LKP Securities, noted a bearish trend for Nifty 50, which continues to trade below the 21 EMA on the hourly chart. Every attempt to rally back to this level has seen selling pressure emerge. The immediate support range is identified between 25,000 and 25,050. A drop below this threshold could initiate a more significant correction.
Vinod Nair, Head of Research at Geojit Investments, attributed the recent market الحركة إلى جني الأرباح التي أعقبت الإصلاحات الضريبية. The current high valuations in India, coupled with slowing earnings growth, are pushing foreign investors to reduce their exposure, albeit some optimism persists due to structural reforms and domestic growth factors.
The latest comments from the US Federal Reserve dissuade speculation of a drastic rate cut, with Fed Chair Jerome Powell ruling out any aggressive cuts in the near term. This has introduced a cautionary tone among investors, especially amid trade talks between India and the US.
Stock Recommendations for Thursday
In response to the ongoing market dynamics, several analysts have put forth recommendations for stocks to be watched or traded on Thursday.
ASK Automotive Ltd: Recommended purchase at ₹564 with a target of ₹600 and a stop-loss at ₹544. This stock has shown resilience, recently staging a breakout following a consolidation phase.
Syrma SGS Technology Ltd: At a current price of ₹863, analysts suggest a buy with a target of ₹925 and a stop-loss at ₹830. Its technical indicators point towards a sustained upward momentum.
Reliance Industries Ltd (RIL): Suggested buy at ₹1,384, aiming for a target of ₹1,415 with a stop-loss at ₹1,356. A bullish engulfing pattern indicates a potential reversal in momentum.
Escorts Kubota Ltd: Buy at ₹3,698, targeting ₹3,800, with a stop-loss at ₹3,650. The stock is showcasing signs of a potential bullish retracement.
Voltas Ltd: Recommended purchase at ₹1,372 with a target of ₹1,405 and a stop-loss at ₹1,355, indicating a possible near-term rebound from support levels.
HBL Engineering Ltd: Analysts suggest buying at ₹829, targeting ₹880. The recent market dip has provided an opportunity to buy into this stock.
Kopran Ltd: Buy recommended at ₹182.76 with a target price of ₹195 and a stop-loss at ₹178. Positive indicators are signaling further upward potential.
- CarTrade Tech Ltd: Suggested purchase at ₹2,493, with a target of ₹2,630 and a stop-loss of ₹2,440. Its recent reinforcement from support levels indicates a potential for growth.
Conclusion
As market dynamics continue to shift, both based on local factors and international cues such as Fed policies and trade negotiations, unless the Nifty 50 breaks below the established support levels, a sideways trend is expected in the upcoming sessions. The abovementioned stocks represent a blend of potential short-term gains and technical setups that analysts believe could provide good opportunities for investors.
As market conditions remain volatile, it is highly advised for investors to exercise caution and carry out adequate research or consult certified financial experts before making investment decisions. The interplay between profit-taking, geopolitical tensions, and macroeconomic indicators will continue to shape the market’s trajectory in the near term.
