Stock Market News: Domestic benchmark equity indices, the Sensex and the Nifty 50, began Thursday’s session at a record high due to a robust trend in US markets and inflows of foreign funds.
In early trade, the Sensex rose by 159.18 points to hit an all-time high of 74,245.17. The Nifty 50 touched 22,523.65, up 49.6 points. The markets soon became volatile, though, and the benchmark indices were fluctuating between highs and lows.
Also Read: Sensex Today | Share Market Live Updates : Benchmarks muted after record high open; Sensex at 74,120, Nifty tests 22,500
“There are some distinct trends in the market now. One, large caps are outperforming mid and small caps. Two, Bank Nifty is emerging stronger led by private sector majors like ICICI Bank, Axis Bank, Ind Sind Bank and Kotak Bank. Three, regulatory action on some NBFCs have impacted sentiments in the entire NBFC space, which, in turn, is improving sentiments in the high quality private banking space.
The 3.7% decline in the small cap index this week when Nifty appreciated by 0.5% is a big underperformance. This trend is likely to continue since valuation in the broader market remains highly elevated and the regulator has sent a clear message regarding the froth in the segment,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The Sensex and the Nifty 50, staged an impressive comeback in the second half of Wednesday’s trading session, recovering early losses as large-cap stock buying resumed. However, the broader index kept underperforming as concerns about stretched valuations were reflected in the profit booking in the Mid and Small caps.
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The BSE Sensex closed higher by 408.86 points or up 0.55% at 74,085.99 level while the Nifty 50 ended at 22,474.05 level, up 117.75 points or 0.53% on Wednesday.
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Stock Market Recap
The mixed global sentiments and recent timidity in our market led to a tepid start for the benchmark index. This was followed by a broad-based sell-off, which slightly dampened sentiments. However, the bulls lashed at this opportunity and went all gun blaze to not only pare down the losses but propel the index to uncharted terrain. Eventually, with the V-shape recovery, Nifty 50 clocked new highs and settled a tad below 22,500, procuring 0.53 percent, said Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One.
The strong recovery from the crucial support zone certainly portrays the bullish undertone, which is even aligned with our view of ‘Buying the dips’ in our last commentary. Initially, the private sector banking space provided a cushion, which lately has been joined by select heavyweights and across-sector buying emergence, leading to a V-shape recovery in the benchmark. With the recent development, the index has once again headed to lifetime high levels, and a follow-up session could certainly add a bullish quotient to the markets, explained Krishan.
Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on March 7
Nifty 50 Outlook
The support zone of 22,200 withheld its significance and is likely to provide a cushion in the near term, followed by 22,150 and 22,000 on a broader term. On the flip side, as the Nifty 50 is in uncharted territory, it would be challenging to forecast resistance. But with the strong bullish candle formation, 22,600–22,650 is likely to be seen as the next potent resistance for the index in the comparable period, said Osho.
Stock Market Tips
Going ahead, the global markets are currently completely shrugged off, but it is better to keep a regular tab on them as any turbulence there might adversely affect our markets. Meanwhile, we remain sanguine and would advocate traders focus more on thematic movers for outperformance, advised Krishan.
Stock Recommendations For Today by Osho Krishan
On stocks to buy today, Osho Krishan recommended two stocks -HDFC Life Insurance Company Ltd and Kotak Mahindra Bank Ltd.
HDFC Life Insurance Company Ltd
HDFC Life Insurance Company Ltd has been in a corrective phase for three trading months, during which it has corrected almost 20 percent. Recently, the counter has witnessed a pullback from oversold technical parameters and a ‘Double Bottom’ formation on the daily time frame, suggesting a turnaround in the near trend. Simultaneously, the counter has surpassed its major short-term EMAs, adding to a bullish quotient.
“Hence, we recommend to BUY HDFC Life Insurance Company around ₹610-605, keeping a stop loss of ₹586 for a positional target of ₹650,” said Krishan.
Kotak Mahindra Bank Ltd
Kotak Mahindra Bank Ltd has witnessed a prominent correction from the ₹1,926 odd zone to shed nearly 12 percent since the commencement of the new calendar year. The technical parameters have turned extremely oversold, and with the recent developments from the lows of ₹1,680-1,670, the stock seems to take a breather and could be seen as an opportunity to accumulate in a staggered manner from a short- to medium-term perspective.
“Hence, we recommend to BUY Kotak Mahindra Bank at ₹1,750–1,740, keeping a stop loss of ₹1,680 for a positional target of ₹1,840–1,860,” said Osho.
Also Read: Stock market today: Day trading guide for Nifty 50 to Sensex, six stocks to buy or sell on Thursday
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.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
