Today’s stock market: Domestic benchmark indexes (Nifty 50 and Sensex) began Thursday, with a slight increase despite continued sales pressure from foreign investors, which continues to affect market sentiment.
The Nifty 50 index has an open rate of 22,568.95, climbing 21.40 points or 0.09%, while the Sensex has an open time of 74,706.60, up 104.48 points or 0.14%.
Market analysts pointed out that weak corporate profits are concerned about the severe negative impact on the market due to slowdown and continued withdrawals from foreign portfolio investors (FPIS). As the February derivative maturity approaches, investors are carefully observing market trends to assess future developments.
Dr. VK Vijayakumar, chief investment strategist at Geojit Financial Services, mentioned that in fiscal 25, foreign institutional investors (FIIS) have unloaded the cash market shares as ₹3,87,976 million. It is worth noting that domestic institutional investors (DIIS) offset such sales by purchasing valuable stocks ₹5,55,519 million.
Despite this, the market continues to decline. Actions from high net worth individuals (HNIS), ultra high net worth individuals (UHNIS) and home offices may also affect DII statistics and may also affect the market. Such savvy investors may be inclined to sell because they tend to align with the underlying trends and fundamentals have been weakening due to cyclical slowdowns in GDP growth and company earnings.
Osho Krishan, Senior Analyst, Technology & Derivatives by Nifty 50 Outlook, Angel One
After a significant gap in the beginning, the benchmark index struggled to gain momentum, fluctuating in a tight range for most of the time in most trading sessions. This lack of vitality may be attributed to participants’ hesitation before the mid-week holiday and the upcoming monthly contract expiration.
There was a fierce war between counterparties, but the bears continued to assert their dominance in the market. The technical structure of the benchmark index remains unchanged, indicating that we look forward to the continued bearish feeling in the near future. This general trend suggests caution about market participants and continues to be uncertain in the coming days. From a technical point of view, the support level of 22,500-22,400 in the near future is crucial to the Nifty 50 index and requires careful observation. Its ability to retain can determine whether a rebound is possible or further decline is imminent. Instead, the bearish gap of 22,670-22,720 presents significant obstacles to expiration dates, which promises to hinder any potential recovery efforts.
As the upcoming monthly expiration occurs, volatility may increase. It is important to understand too many conditions, as these conditions can seriously affect the setting of the tone of the intermediate market. At the same time, global development is of great importance in determining market trends, so it is crucial to stay aware of these developments.
Stocks purchased on Thursday – Osho Krishan
On the stocks purchased on Thursday, Angel One’s Osho Krishan suggested two stocks – Axis Bank and Himadri Specialty Chemical Ltd.
Axis Bank
Compared to the peak in 1340, Axis Bank’s correction is close to 30%, with no signs of a breath or a callback. The stock is currently approaching historical support levels, almost a year ago. In addition, technical indicators have fallen into oversold territory. However, the stock has some stability in the past few meetings, as well as a positive crossover in the 14-day RSI, which suggests an increase in buying interest. From a risk-reward perspective, the stock is located in a favorable area and is expected to attract buying activity in the near future.
Therefore, we recommend buying an axle bank of about 1,000 axes to keep the stop loss of 960 to 1,080-1,100.
Himadri Specialty Chemical Ltd
Himadri Specialty Chemical Ltd has been in the profitable stage for the past few months, with current trading below the exponential moving average and the 200-day simple moving average (DSMA). The stock has been reviewing towards a breakout neckline that took place around 400 divisions last June, and since then, there have been signs of buying interest. Meanwhile, the MACD indicator shows a negative difference, with lows occurring at similar levels, indicating that there may be a counter-trend in the near future.
Therefore, we recommend buying Himadri Specialty around 430 to maintain the goal of losing 480-500 for 400.
Disclaimer: The above views and suggestions are those of individual analysts, experts and brokerage firms, not mint. We recommend that investors contact certified experts before making any investment decisions.
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