Over 100 BSE-listed shares hit 52-week low despite stock market rally. Do you own any?

Stock market today: KEI Industries, ANG Lifesciences India, Adroit Infotech, Deccan Health Care, Exxaro Tiles, NDL Ventures, Paushak, Praxis Home Retail, Tree House Education & Accessories, Vikas EcoTech, and VR Films & Studios hit their 52-week lows during intraday trading on the BSE on Thursday, March 20, despite stock market rally. On Thursday, Sensex jumped 899.01 points to settle at 76,348.06; and Nifty 50 soared 283.05 points to 23,190.65.

Analysts attribute the recent rally primarily to encouraging global signals following the US Federal Reserve's choice to keep interest rates steady, along with anticipation of possible rate reductions later in the year.

The IT sector spearheaded the momentum, with key companies like TCS, Infosys, and Wipro experiencing gains that helped propel the Sensex upward. Additional sectors, including Auto and FMCG, also experienced significant growth.

In general, the market’s performance was strengthened by both local and international influences, creating an optimistic outlook for upcoming trading sessions.

Vinod Nair, Head of Research at Geojit Financial Services, noted that the ongoing declines in the US dollar index (DXY) have lessened the intensity of Foreign Institutional Investor (FII) selling, while Domestic Institutional Investor (DII) buying remains robust, which has triggered the recent market uptick.

Favourable domestic data showing a month-on-month increase in economic activity, along with the expectation of additional rate cuts this year, are enhancing the appeal of equities. It is anticipated that the current rally will be sustained in the short term across the broader market, subsequently influenced by the outlook on Q4FY25 results set to be released in April.

Nifty 50 Outlook

Rupak De, Senior Technical Analyst at LKP Securities explained that Nifty 50 has given a falling trendline breakout on the daily chart, suggesting a bullish trend reversal. Additionally, it has been sustaining above the 21EMA for the past three days, confirming a short-term uptrend. The RSI has risen above the previous swing high, further strengthening the positive sentiment.

“Overall, the outlook remains optimistic, with the potential for a further rally in the short term. On the higher end, Nifty 50 could move towards 23,400 and beyond, while on the lower end, support is placed at 23,000,” said De.

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