Stock market today: Indian stocks were poised to end a three-day winning streak on Thursday, hindered by a drop in metals that mirrored global downturns and a cautious approach towards rate-sensitive shares ahead of the central bank's policy announcement.
The Nifty 50 fell by 0.62% to 25,616, while the BSE Sensex decreased by 0.59% to 83,312.96, as recorded at 12:27 IST. The cautious sentiment in the market came after the recent rally spurred by the India-US agreement, despite new worries affecting certain sectors.
In the broader market on the National Stock Exchange (NSE), the Nifty 100 index experienced a slight decline of 0.12%. The Nifty Midcap 100 dipped by 0.04%, whereas the Nifty Smallcap index fell by 0.31%.
Sectoral indices on the NSE showed mixed performance. The Nifty Auto index increased by 0.20%, supported by expectations of steady domestic demand. In contrast, the Nifty IT index decreased by 0.36%, while the Nifty Metal index saw a notable drop of 1.71%.
Other significant indices, including Media, Pharma, PSU Bank, Healthcare, and Consumer Durables, were trading positively, exhibiting modest gains.
Market Views - Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
After showing upmove with range bound action on Wednesday, Nifty slipped into weakness on the backdrop weak global cues so far Thursday and is currently trading lower by 80 points. The huge up gap that formed on Tuesday remains partially filled after two days of its formation. If this gap remains open for the next couple of sessions then that gap could be considered as a bullish runaway gap, which are normally formed in middle of the trend. The next lower supports to be watched at 25,550 and the immediate resistance is now placed at ₹25,800.
Technical Picks: Stocks to buy in the short-term
Nagaraj Shetti of HDFC Securities recommends these two stocks to buy in the short-term - Rico Auto Industries Ltd, and Gabriel India Ltd.
Buy Gabriel India at ₹962.50, Target at ₹1,022, Stoploss at ₹927, Timeframe 1 week
The downtrend seems to be over and the stock price has shifted into a consolidation with positive bias in the last few weeks. We observe key bottom formation at the lows of ₹860 levels recently. The present bounce from the lows is currently placed at the edge of breakout of down sloping trendline resistance.
Buy Rico Auto Industries at ₹127.50, Target at ₹135, Stoploss at ₹123.50, Timeframe 1 week
Sharp down trend of previous five weeks seems to have rebounded this week. The stock price has bounced back sharply this week after the formation of higher bottom reversal pattern at ₹111 levels. The stock price has sustained above the support of 20-week EMA.
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.
