Stock market today: The Nifty 50 index ended 4.4% lower from the previous week due to the sharp market decline due to the Israel-Iran war. Sensex also ended with a similar decline at 81,688.45. Metals and IT had the highest rate of increase, while real estate and automobiles had the highest rate of decrease.
Bank Nifty also ended at 51,462.05, down 4.6% from the previous week. The mid-cap index fell by about 3.1%, while the small-cap index fell by 1.8%, outperforming large-cap stocks.
Monday trading setup
Last week, Nifty bucked several weeks of gains and fell. Deepak Jasani, head of retail research at HDFC Securities, said the oversold situation could mean a minor pullback in the short term, but this is a negative sign. Nifty may currently find support at 24753 and later at 24420, while 25453 may act as resistance in the short term, he added.
Banknift tested the 20-week moving average 51350 on Friday and the index also reached a key support zone. Jatin Gedia, technical research analyst at Sharekhan, said a pullback is expected in the next few trading sessions. On the upside, we expect a rebound towards 52200-52600. An important support zone is located between 51400 and 51300.
Global market in the midst of the Iran-Israel war
Stock indexes around the world, including those in Asia, Europe and the United States, were mostly higher on Friday, after stock prices fell on Thursday due to the deteriorating situation in the Middle East. While rising oil prices remain a concern, better-than-expected non-farm employment data boosted the US market.
We expect markets to be firm next week as concerns about escalating tensions in West Asia raise concerns. Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services, said equity-focused activity will continue as earnings season begins next week.
Although interest rate cuts are not on the agenda, the RBI’s monetary policy remains in focus and comments will be very important.
Stocks to buy today
Sumeet Bagadia, Executive Director, Choice Broking, recommended two stock picks on Friday. Mr. Ganesh Dongre, Senior Manager, Technology Research, Anand Rathi also proposed three stock ideas for the day.
These include Sundaram Finance Ltd, Info Edge (India) Ltd (Naukri), Reliance Industries Ltd, Aurobindo Pharma Ltd and Piramal Enterprises Ltd.
Sumeet Bagadia Stocks to Buy Today
Sundaram Finance Ltd – Bagadia recommends Buy Sundaram Finance at ₹5332.8 with stop loss kept at ₹5145.38 and target price ₹5705.
Sundaram Finance is currently trading at ₹5332.8 and has formed a strong bullish candlestick on the daily chart, indicating a possible reversal from key support levels. The stock has rebounded from the support zone, suggesting a reversal pattern supported by increased trading volume and reflecting a bullish outlook. If SUNDARMFIN can sustain above the key level of ₹5400, it could continue its upward momentum towards ₹5705.
2. Info Edge (India) Ltd (Naukri) – Bagadia recommends to buy Info Edge (India) (Naukri) stock at ₹8198.65, keeping stop loss at ₹7900 and target price ₹8666.
The stock is currently trading at the 8198.65 level. The stock price rose significantly, hitting a new high of 8,308.90 yen, a positive sign that the upward momentum may continue. This sustained growth is underpinned by positive market sentiment supported by increased trading volumes, suggesting more investors have confidence in the stock’s potential.
Ganesh Dongre Stocks to Buy Today
3. Reliance Industries Ltd – Dongre recommends Buy Reliance Industries Ltd at ₹2770 with stop loss kept at ₹2720 and target price ₹2850.
Reliance Industries stock has received significant support at Rs 2,720 and has hit important milestones in recent trading. Currently, the stock price has shown a decisive reversal at Rs 2,770, suggesting that the upward momentum may continue. Traders keen to seize this opportunity may consider going long and holding the stock with a prudent stop loss at Rs 2,720. The expected price target for this trade is Rs 2,850, which is the next important resistance level. This strategy allows traders to take advantage of the expected rise in stock prices in the coming weeks.
4. Aurobindo Pharma Ltd – Dongre recommends to buy Aurobindo Pharma ₹1460 stop loss ar ₹1430 with target price ₹1320.
A recent short-term trend analysis of Aurobindo Pharma stock reveals a notable bullish reversal pattern. This technical pattern suggests a possible temporary retracement in the stock price, potentially reaching around Rs 200,000 crore. Currently, the stock is holding an important support level at Rs 1,430. Given the current market price of Rs 1,460, there is a buying opportunity. This suggests that investors may consider buying the stock at the current price in hopes of an appreciation towards a specific target of Rs. 1320.
5. Piramal Enterprises Ltd. Dongre recommends to buy Piramal Enterprises at ₹1032 with stop loss at ₹1010 and target price ₹1080.
The daily chart of Piramal Enterprises stock has seen a breakout at Rs. A price level of 1032 is observed, indicating a potential uptrend. Complementing this breakout, the Relative Strength Index (RSI) remains in an uptrend, indicating increasing buying momentum. Considering these technical indicators, traders can consider buying the dip and entering the stock at a lower price point. To manage risk, set a stop loss at Rs. 1010 is recommended. The target price for this strategy is Rs. 1080 in the coming weeks, suggesting a potential move higher as the stock continues its upward trajectory.
Disclaimer: The views and recommendations above are those of individual analysts or brokerages and not of Mint. We recommend checking with a certified professional before making any investment decisions.
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