Share market holiday: The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will be shut down on November 20 due to the Maharashtra Assembly elections. Trading on both the NSE and BSE will reopen on November 21 (Thursday).
On Tuesday, the domestic benchmark indices, Nifty 50 and Sensex, bounced back into positive territory after experiencing seven straight sessions of losses. The uptick observed yesterday might be partially due to value buying. The Sensex finished at 77,578.38 points, gaining 239.38 points or 0.31%, while the Nifty 50 wrapped up at 23,518.50 points, rising by 64.70 points or 0.28%. According to NSE data, Nifty sectors such as auto, media, realty, and consumer durables led the gains, whereas metal, PSU banks, and oil and gas sectors faced declines.
Vinod Nair, Head of Research at Geojit Financial Services, pointed out that the robust recovery driven by bottom fishing was fleeting as market caution remains. Investors are seizing every chance to realize profits amid ongoing selling by foreign institutional investors (FIIs) and disappointing Q2 earnings. Profit-taking was also observed in advance of the upcoming Maharashtra state election. The recent decline in valuations indicates a possible halt in further price drops. Nevertheless, the recovery will hinge on an improvement in earnings, which is expected to rise due to an anticipated increase in central and state spending in the second half of the year.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50 trading near 4 months low and taken support near 233 SMA. Nifty 50 has corrected almost 10% from its recent high and struggled to find any good demand area as FII continue its selling.
Nifty 50 has bounced from 233 SMA in last session but Ukraine news in last hour of session triggered selling pressure and wiped-out entire day gain. Market is keeping eye on State election results , volatility is subdued which means market is not expecting bigger negative surprise from State election result. Nifty 50 is likely to form range for next couple of week between 23,200-24,200 levels.
Bank Nifty
Bank Nifty has been trading in the range of 52,000 and 50,000 for the past 6 weeks now. Banking is outperforming index lead by good supportive result by large cap banks which is holding Banking index.
On other side PSU bank also likely to form bottom post decent correction in last couple of months . PSU banking stock is now trading near Good demand zone. Bank Nifty likely to continue its out performance once its breaks 51,500.
Stocks To Buy or Sell on Thursday – Sagar Doshi
On stocks to buy or Sell on Thursday, Sagar Doshi of Nuvama recommended three stocks – Coromandel International Ltd, Eicher Motors Ltd, and Ipca Laboratories Ltd.
Coromandel International Ltd (BUY): LCP : ₹1,764; Stop Loss : ₹1,710; Target Price : ₹1,850
Stock has given a breakout from falling trendline and trading near new life high . stock is outperforming market and its peer group. Stock has taken support at 21 DMA and formed bullish reversal pattern suggesting stock likely to move higher.
Eicher Motors Ltd (BUY): LCP : ₹4,965; Stop Loss : ₹4,800; Target Price : ₹5,450
Inspite of sharp sell off in entire Auto sector Eicher is trading near breakout level which shows strength and outperformance. Stock has formed triple bottom formation and now likely to break upper range . momentum oscillator suggest further upside move is likely to unfold.
Ipca Laboratories Ltd (BUY): LCP : ₹1,574; Stop Loss : ₹1,500; Target Price : ₹1,750
Ipca lab has taken support at previous break out levels. Reversing from 21 dma and formed triple bullish soldier pattern . Stock is also in a verge of giving falling trendline breakout suggesting up move likely to continue.
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.
