Stock market today: The domestic benchmark indices Nifty 50 and Sensex started higher on Tuesday after finishing at seven-month lows in the last session, although their gains were limited by a drop in HCLTech, an IT firm, that reported quarterly revenue below expectations.
As of 9:15 IST, the Nifty 50 increased by 0.48% to reach 23,196.2 points, while the Sensex grew by 0.42% to hit 76,671.93.
In the previous session, both benchmarks fell approximately 1.4% each, closing at seven-month lows following an unexpectedly strong US jobs report that suggested fewer rate cuts, amid ongoing concerns over declining domestic earnings and yet another depreciation of the Indian rupee.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, indicated that the market currently seems somewhat oversold, which could lead to a near-term rebound. However, if such a trend materializes, it is unlikely to be lasting. Mid and small-cap stocks are expected to experience further challenges.
Recent net institutional activity in the market reveals that domestic institutional investors (DIIs) purchased ₹3174 crores more than what foreign institutional investors (FIIs) sold. This suggests that high-net-worth individuals (HNIs) are also liquidating positions in the market. The strategy employed by FIIs of consistently increasing short positions this month has proven effective.
The Nifty 50 extended its correction from the prior week after a gap-down opening on Monday, slipping more than 1%. The decline was driven by concerns over a pause in Fed rate cuts and a strengthening dollar.
All sectors ended in the red, with Realty and Mid-Cap stocks among the hardest hit. Technically, the Nifty 50 witnessed a breakdown from a Symmetrical Triangle pattern on the daily chart, pushing the index into bearish territory after being range-bound between 23,500 and 24,000 throughout December.
The Relative Strength Index (RSI) is nearing oversold levels, signaling a potential short-term bounce, though the medium-term outlook remains bearish. Key near-term support levels are 22,900 and 22,750, while resistance levels stand at 23,300 and 23,500.
On shares to buy or sell on Tuesday, Sachin Gupta recommends Container Corporation of India (CONCOR) January futures, and LIC Housing Finance Ltd January futures.
After experiencing a pullback, the stock has resumed its downward move and has remained below the 61.8% retracement level. The price is also trading below key moving averages, and the negative crossover in the RSI indicator points to the likelihood of further correction in the short term. On the daily chart, the stock is forming a Lower Top and Lower Bottom pattern, indicating continued weakness.
Based on this structure, bearish momentum in CONCOR is expected in the near term. Traders can consider selling in the stock around 735, with a stop loss at 760, for the target of 710 and 690 levels.
On the weekly chart, the stock has confirmed a breakdown of the Head and Shoulders pattern, indicating bearish sentiment. Additionally, the price has breached the support of the 100-week Exponential Moving Average, signaling a downtrend. The stock has also turned lower from the Lower Bollinger Band support zone and experienced a negative crossover on the weekly scale.
Based on these Technical signals, we are expecting further correction in LIC Housing Finance for the short to medium term. Traders are advised to follow a ‘sell on rise’ strategy. On the downside, support is placed around the 500 and 480 levels, while upside resistance is around the 580 level.
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.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.