Stock market today: The Indian stock markets faced renewed pressure on Friday morning as both indices showed a nearly flat opening in the negative territory.
The Nifty 50 index began at 23,277.10 points, reflecting a decrease of -34.70 points or -0.15%, whereas the Sensex opened slightly higher at 77,069.19 points, with an increase of 26.37 points or 0.03%.
Analysts have observed that the continuous selling by foreign portfolio investors (FPI) is putting ongoing strain on the indices. Furthermore, Donald Trump's impending inauguration is likely to increase market volatility, as his initial executive orders will be closely monitored to evaluate subsequent measures regarding tariffs and taxes.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted two favorable aspects for the market today: firstly, there is a continuing decrease in both the dollar index and US bond yields. Secondly, the Q3 earnings reports from major players like RIL and Infosys have surpassed expectations.
These two companies could potentially spearhead a slight market rebound. However, while the falling dollar index and US bond yields are encouraging, they are insufficient to stop the ongoing selling pressure from foreign institutional investors (FIIs). As a result, any noticeable market recovery is likely to be met with selling activity.
On the daily and weekly time frames, the benchmark index continues to extend its downtrend, forming a series of lower tops and bottoms. The index is sustaining below its 20,50, 100, and 200-day SMA, which reconfirms the overall bearish trend. The short-term outlook remains weak from current levels, with an expected supply zone of 23,600-23,600, whereas the crucial support zone is around 23,000. Any violation of the same may cause further weakness towards the 22,500-22,000 levels.
In the daily time frame, the stock witnessed a decisive breakout from an "inverse Head & Shoulder" formation at 215 levels on a closing basis. This breakout was accompanied by huge volumes, indicating increased participation. Recently, the stock recaptured the 20, 100, and 200-day SMAs and rebounded sharply, which reconfirms bullish sentiment. The daily and weekly strength indicator, RSI, is in favorable terrain, indicating rising strength.
Investors should buy, hold, and accumulate this stock. Its expected upside is 230-255, and its downside support zone is 207-201.
In recent weeks, the stock has shown strong momentum and has decisively surpassed multiple resistance levels at 2,400. It has confirmed a breakout from a "rounding bottom" formation, indicating a potential uptrend. The stock is currently positioned above its 20-day, 50-day, 100-day, and 200-day simple moving averages (SMAs), which further reinforces bullish sentiment. Additionally, the daily and weekly Bollinger Bands have issued a buy signal, suggesting increased momentum. The daily, weekly and monthly strength indicator RSI is in favourable terrain, indicating rising strength.
Investors should buy, hold, and accumulate this stock. Its expected upside is 2,750-2,900, and its downside support zone is 2,500-2,450.
On the daily chart, the stock has confirmed a "triangular" breakout at the 955 levels on a closing basis. Huge rising volumes signal increased participation. The stock is well placed above its 20, 50, 100, and 200-day SMAs, which reconfirms bullish sentiment. The daily "Bollinger Band" buy signal shows increased momentum. The daily, weekly, and monthly strength indicator RSI is in favourable terrain, indicating rising strength.
Investors should buy, hold, and accumulate this stock. Its expected upside is 1055-1100, and its downside support zone is 950-925.
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.
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