The stock market experienced a notable dip on Thursday, with the Nifty-50 index closing 0.58% lower at 24,273.80. The Bank Nifty also saw a decline, ending down 0.45% at 54,365.65. This downturn was influenced by broad sector weaknesses, particularly in real estate, metals, and automotive, while the IT sector managed to stand out as the sole performer in the green. Overall, broader indices faced a correction ranging from 1.5% to 2%.
Market Sentiment and Projections
As we approach Friday, market sentiment appears to be faltering, raising concerns about further short-term corrections. Analysts suggest that the Nifty has immediate support at 23,950; should it break below this mark, it could slide toward 23,450. Conversely, the resistance levels are positioned at 24,400 and 24,550, according to Rupak De, a Senior Technical Analyst at LKP Securities.
For the Bank Nifty, key resistance is seen at 55,000 and 56,000, while support is identified at 53,890, as stated by Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediaries.
Global Influences and Cautionary Strategies
Recent border tensions and lackluster global cues have adversely affected the markets and the Indian rupee. Investors are urged to adopt a cautious approach, steering clear of aggressive positions and focusing on fundamentally strong stocks that are less susceptible to geopolitical risks. Defensive sectors along with quality large caps may provide enhanced stability in these turbulent times, notes Vikram Kasat, Head of Advisory at PL Capital.
Stock Recommendations for Today
In light of current market conditions, several market experts have shared stock picks worth considering. Sumeet Bagadia from Choice Broking has highlighted two promising stocks, while Ganesh Dongre of Anand Rathi and Shiju Koothupalakkal from Prabhudas Lilladher have offered additional recommendations. Here’s a closer look at their suggestions:
Sumeet Bagadia’s Top Picks
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Asahi Songwon Colors Ltd:
- Entry Price: ₹402
- Stop Loss: ₹387
- Target Price: ₹430
Bagadia notes that Asahi is showing strong bullish momentum, characterized by a significant upward movement and robust buying interest.
- Privi Speciality Chemicals Ltd:
- Entry Price: ₹2,124
- Stop Loss: ₹2,065
- Target Price: ₹2,290
The stock has surged nearly 8%, reflecting a strong upward trend since its March low, suggesting potential for further growth.
Ganesh Dongre’s Recommendations
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ITC Ltd:
- Entry Price: ₹430
- Stop Loss: ₹415
- Target Price: ₹445
ITC exhibits a bullish setup, forming a Bullish Engulfing pattern, hinting at a potential price reversal.
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Nestle India Ltd:
- Entry Price: ₹2,350
- Stop Loss: ₹2,280
- Target Price: ₹2,450
Nestle shows signs of a trend reversal and renewed buying interest, making it a favorable short-term investment.
- Hindustan Aeronautics Ltd (HAL):
- Entry Price: ₹4,422
- Stop Loss: ₹4,350
- Target Price: ₹4,620
HAL is demonstrating a bullish reversal pattern and trading well above its 50-day EMA, indicating positive momentum.
Shiju Koothupalakkal’s Intraday Selections
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Clean Science and Technology Ltd:
- Entry Price: ₹1,192
- Target Price: ₹1,240
- Stop Loss: ₹1,170
Following a brief consolidation, the stock is poised for a positive move, with favorable technical indicators.
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Sequent Scientific Ltd:
- Entry Price: ₹155
- Target Price: ₹163
- Stop Loss: ₹152
The stock has shown a solid rebound from its lows and is well-positioned for further upward movement.
- Varroc Engineering Ltd:
- Entry Price: ₹460
- Target Price: ₹485
- Stop Loss: ₹448
Varroc shows a strong upward bias, with a recent formation of higher bottoms indicating bullish potential.
Conclusion
As the market navigates through a period of uncertainty, staying informed and strategically choosing stocks can be crucial for investors. By following expert recommendations and focusing on strong fundamentals, one can better position themselves to weather market fluctuations. Always remember to conduct thorough research or consult with a financial advisor before making investment decisions.
