In a surprising turn of events, the Indian stock market closed at a record high on Tuesday, defying the mixed signals from Asian markets and a downturn in European markets. The Nifty 50 closed 26 points higher, reaching 24,613, while the BSE Sensex rose by 51 points to finish at 80,716. In contrast, the Bank Nifty index saw a decline, ending 59 points lower at 52,396. Despite these fluctuations, the overall sentiment in the Indian stock market remained buoyant.
The trading volumes in the cash market on the NSE were reported to be 5.1% lower, at ₹1.25 lakh crore, indicating a slight dip in trading activity. However, the advance-decline ratio was positive at 1.05:1, suggesting that more stocks advanced than declined. The mid-cap index did not share the same positive momentum and ended the day on a negative note.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, provided insights into the market’s near-term outlook. According to Shetti, the uptrend in Nifty remains intact, with the index consolidating at higher levels without any significant reversal patterns emerging.
He suggested that the Nifty could move towards 24,900 in the near term, with immediate support levels around 24,450. This analysis indicates a cautious optimism among market analysts, who are watching for potential movements within these key levels.
Similarly, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, shared his views on the Bank Nifty index. Yedve noted that the index opened adversely and consolidated within a narrow range before closing negatively at 52,397. Technically, the index remains above the 21-day EMA support, positioned near 51,960, and the recent swing low of 51,750.
Yedve emphasized that as long as the index stays above 51,750, a buy-on-dips strategy should be maintained. On the upside, resistance levels are pegged at 52,800 and 53,000.
Adding to the market’s activity, 34 listed companies are set to declare their Q1 results for 2024 today. This includes major names like Infosys, Havells India, Polycab India, JSW Infra, Tata Communications, Persistent Systems, Tata Technologies, Dalmia Bharat, Tanla Platforms, MAstek, South Indian Bank, and Rallis India. The outcomes of these earnings reports are likely to influence market sentiment further.
In terms of stock recommendations, experts have identified a few promising buys. Sumeet Bagadia, Executive Director at Choice Broking, recommends Suzlon, Tech Mahindra, and Siemens.
For Suzlon, Bagadia suggests a buy at ₹55.70 with a target of ₹60 and a stop loss of ₹53.90, highlighting the stock’s recent breakout and positive technical indicators.
Tech Mahindra, trading at ₹1515, is advised for a buy with a target of ₹1620 and a stop loss of ₹1450, showing robust strength above key moving averages. Siemens is also recommended for a buy at ₹7470, with a target of ₹7900 and a stop loss of ₹7350, supported by strong technical trends.
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommends Jindal Steel and Adani Total Gas. For Jindal Steel, Dongre suggests buying at ₹1010, targeting ₹1050 with a stop loss at ₹992, based on a bullish rounding bottom pattern. Adani Total Gas is recommended for a buy at ₹906, targeting ₹950 with a stop loss at ₹880, supported by a bullish triple bottom pattern and a bullish engulfing pattern.
