The Indian stock market faced a downturn on Thursday, largely influenced by negative global market trends following a significant crash in the U.S. markets. The Nifty 50 index closed down by 73 points, settling at 22,397, while the BSE Sensex dropped 200 points to 73,828. In contrast, the Bank Nifty index managed to hold its ground slightly higher at 48,060. This dip was driven primarily by declines in the auto and IT sectors, with Reliance Industries Ltd. being a notable contributor to the loss, decreasing by 0.7%. Meanwhile, Shriram Finance Ltd. experienced a steep drop of 2.7%.
Sector Performance Overview
- Top Decliners:
- Nifty Realty, Media, and Financial Services sectors suffered the most.
- Bank Nifty and PSU Bank indices, however, finished in the green.
The trading volume in cash markets on the NSE saw a 15% decline compared to the previous day. Furthermore, both the Nifty Midcap and Smallcap 100 indices underperformed the Nifty, with losses of 0.75% and 0.98%, respectively. For the fourth consecutive day, the number of declining stocks outpaced those that advanced, resulting in a BSE advance-decline ratio of 0.62.
Market Insights and Predictions
Vaishali Parekh, Executive Director at Prabhudas Lilladher, shared her insights on the current market sentiment, emphasizing a cautiously positive outlook for the Indian stock market. She noted that the Nifty 50 index is nearing a significant support level between 22,300 and 22,250. According to her, the index is currently facing resistance around 22,550, while the critical support level remains at 22,000.
Parekh’s Analysis:
"During intraday trading, the Nifty 50 encountered resistance near the 22,550 mark and experienced a slip due to profit booking, ending near 22,400. This places the index in a precarious situation, maintaining a cautiously positive bias. Sustaining above 22,000 is essential, and a decisive breach above 23,000 would indicate a potential rise in the near future."
Bank Nifty Outlook
The Bank Nifty index has been moving sideways but remains above the crucial support level of 47,800. Parekh highlighted that many frontline banking stocks show promise for upward movement, suggesting that the index could gain momentum in the coming days. A clear breach above the 50-day EMA level of 49,500 could further enhance the positive outlook.
Support and Resistance Levels:
- Nifty Support: 22,300
- Nifty Resistance: 22,600
- Bank Nifty Range: 47,600 to 48,600
Stock Recommendations for Today
For those looking to navigate today’s market, Vaishali Parekh has put forth three notable stock recommendations:
-
Godawari Power:
- Buy at: ₹172
- Target: ₹182
- Stop Loss: ₹167
-
ELGI Equipments:
- Buy at: ₹444
- Target: ₹465
- Stop Loss: ₹430
- Dr Reddy’s Laboratories:
- Buy at: ₹1109
- Target: ₹1160
- Stop Loss: ₹1080
By keeping an eye on these support levels and stock recommendations, investors can position themselves strategically in the current market climate.
