Stock Market News: On the day of the monthly derivatives' expiry, the domestic benchmark stock indices, the Sensex and the Nifty 50, began Thursday's session at record high levels with little gains but later fell into the red due to profit-booking.
The 30-share BSE Sensex opened marginally higher by 84.42 points or 0.11% at 78,758.67 level while the Nifty 50 kicked off at 23,881.55 level, up 12.70 points or 0.05%.
Despite worries over valuation, Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believes that the market will stay optimistic in the short term and that the Sensex might reach 80,000 levels due to the continuous momentum. The fact that largecaps in industries like banking and telecom that have solid fundamentals are now driving the market's upward trajectory is a positive trend.
The rise has the power to last since Reliance Industries (RIL), which had not joined the rally until yesterday, now joined the bull bandwagon. However, the increase in US bond yield might potentially lead to significant FII selling in the upcoming days, which would halt the gain, said Vijayakumar.
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Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The benchmark index continues its positive run. After the initial hiccup on Monday, prices have gained strong momentum, closing in the green for the third consecutive session. This aligns with our earlier outlook. With no signs of weakness, maintaining a positive bias for the upcoming session is advisable. However, with hourly indicators trading in the overbought zone, traders should avoid complacent long bets and consider booking some profits at higher levels, especially as it’s the monthly F&O expiry session. The levels around 24,000 - 24,100 appear to be a stiff resistance for now. Conversely, immediate support has shifted higher to around 23,650, with strong support at the bullish gap near 23,550. Traders should monitor these key support levels, as dips toward them could present good buying opportunities, while timely profit booking at higher levels is also recommended.
For the last two sessions, heavyweight counters have driven the market higher, with Reliance up more than 4% in the last session, significantly contributing to the benchmark's rise. In this scenario, midcaps have taken a back seat, with no major traction seen from their end. We believe the shift in momentum and sector rotation will continue. Traders need to stay agile, shifting focus between themes to capitalise on sector rotations, said Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One.
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On stocks to buy today, Osho Krishan recommended two stocks - Suven Life Sciences Ltd, and Sutlej Textiles and Industries Ltd.
Suven Life Sciences has been in a consolidation phase for quite some time, hovering near the cluster of its major EMAs on the daily chart. However, in the last session, the counter gained decent traction and attempted to break through the slumber phase, which was backed by robust volumes. On the oscillator front, MACD and 14-period RSI showcase a positive crossover, suggesting a lucrative risk-reward ratio in the counter from the short to medium-term time frame.
“Hence, we recommend to BUY Suven Life Sciences around ₹102-100 keeping a stop loss of ₹95 for a potential Target of ₹112," said Osho.
Sutlej Textiles and Industries witnessed a substantial increase in price in the last couple of trading sessions from the crucial zone of 200 SMA on the daily chart. Additionally, the counter is witnessing a positive crossover of 21 DEMA to 50 & 100 DEMA, construing a positive development. From a technical standpoint, the counter has reversed from critical support and is likely to gain traction in the near period. On the oscillator front, 14-period RSI and MACD both signal a continuation move, suggesting a potential upside journey in a comparable period.
“Hence, we recommend to BUY Sutlej Textiles and Industries around ₹62-60 keeping a stop loss of ₹57 for a potential Target of ₹70-72," advised Krishan.
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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 decisions.