Stock market today: India’s main stock indexes opened higher on Thursday, reflecting gains from Asian counterparts, with declines in Treasury yields and the US dollar.
The Nifty 50 increased by 0.29% to 24,691.2, while the BSE Sensex gained 0.24% to reach 81,196.08 as of 9:15 IST.
On Wednesday, Foreign Institutional Investors (FIIs) shifted to a buying position, purchasing equities worth ₹1,076.18 crore, based on exchange data.
In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng were all performing positively, whereas Japan’s Nikkei 225 index reported a decline.
Domestically, investors are anticipating the Reserve Bank of India’s (RBI) policy announcement on Friday, where it is broadly expected that the central bank will reduce key lending rates by 25 basis points for the third consecutive meeting.
Market analysts suggest that both geopolitical and economic developments may impact markets in the short term. A significant concern is the possibility of Russia retaliating in response to recent Ukrainian attacks on Russian aircraft. The severity of this situation and its consequences remain uncertain at this stage.
Notably, the major economic news is the significant drop in the US ISM PMI data, indicating a pronounced slowdown in the US economy. The yield on the US 10-year bond has fallen to 4.36%, and in light of the decelerating US economy, it is expected to decline further. This trend could be beneficial for emerging markets like India in the medium term.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The broader market kept the market participants active as we witnessed a slight improvement in the Advance-Decline ratio from the previous session. The benchmark index continued its struggles near the 20 DEMA for the entire session, highlighting the significance of these technical parameters.
The current outlook for the index appears to be predominantly sideways, with no substantial movement expected until a decisive breakout occurs beyond the 24,700-24,800 zone, which could catalyse a favorable upward trend. On the other hand, recent market developments suggest that a support level around 24,550-24,500 is likely to materialize, providing a cushion for the index.
Should this level be breached, it could lead to further corrective movements toward the bullish gap identified around 24,380 in the near term. This situation presents both challenges and potential opportunities for market participants and thus requires a pragmatic approach until the trend becomes clear.
As we move forward, it is essential to adopt a stock-centric strategy, particularly during the current period of consolidation that continues to impact the indices. This approach should be accompanied by a strong emphasis on risk management to navigate the market effectively.
Stocks To Buy on Thursday- Osho Krishan
On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks – One 97 Communications Ltd (Paytm), and Titagarh Rail Systems Ltd.
Paytm
Paytm share price has demonstrated a consolidation breakout after a brief consolidation above the cluster of its EMAs on the daily charts, indicating a robust upward trend. From a technical analysis perspective, the stock is currently exhibiting a pattern of ‘Cup and Handle’, supported by favorable indicators that enhance its bullish sentiment. Furthermore, considering the risk-reward dynamics, Paytm share price is in a favourable position and appears poised to maintain its upward trajectory in the near term. This situation presents a significant opportunity for investors seeking growth potential.
Hence, we recommend to BUY Paytm shares around ₹930-920, keeping a stop loss of ₹885 for a potential Target of ₹1,000-1,020.
Titagarh Rail Systems
Titagarh Rail Systems share price has recently emerged from a consolidation phase and is on the verge of a strong breakout, indicating an initial sign of a counter-trend. Additionally, the positive crossover observed between the 20-day and 50-day Exponential Moving Averages (DEMA) represents a favourable development in the technical analysis. This progression is further corroborated by positive movements in the 14-period RSI indicator, followed by pent-up trading volumes, suggesting a constructive outlook for the stock’s performance.
Hence, we recommend to BUY Titagarh Rail Systems share price around ₹920, keeping a stop loss of ₹870 for a potential Target of ₹1,000-1,040.
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.
