In a week marked by significant market fluctuations, Indian equity benchmarks, including the Sensex and Nifty 50, faced their second consecutive decline. This volatility stemmed from global economic concerns, particularly following Donald Trump’s announcement regarding tariffs. However, a 90-day pause on aggressive retaliatory tariffs allowed the market to recover some of its losses, leading to a rebound in the last trading session.
Market Performance Overview
In the latest session, the NSE Nifty 50 index surged by 1.92%, closing at 22,828.55, while the BSE Sensex climbed 1.77% to finish at 75,157.26. Despite these gains, the benchmarks experienced a slight decline over the week: the Sensex fell 207.43 points, or 0.27%, while the Nifty decreased by 75.9 points, equating to 0.33%.
- Investors’ Wealth Decline: Since the beginning of the month, investors have seen a staggering loss of ₹11.30 lakh crore due to the initial market turbulence triggered by Trump’s tariff strategy. Notably, from April 2, the Sensex has dropped 1,460.18 points, reflecting a 1.90% decline.
Expert Insights on Market Trends
According to Sumeet Bagadia, Executive Director at Choice Broking, there is a cautiously optimistic outlook for the Indian stock market. Bagadia noted that the Nifty 50 has recently closed above the 22,800 mark, suggesting a potential positive bias. However, he emphasized that a bullish trend will only be confirmed if the index surpasses 23,000.
- Immediate Support Levels: Current immediate support for the Nifty is at 22,550, with a crucial level at 22,300.
- Market Strategy: A breach below these support levels could ignite fresh selling pressure, while a breakout above 23,000 could signal a new uptrend aimed at a target of 23,400. Investors are encouraged to focus on specific stocks that are showing strength on technical charts.
Recommended Breakout Stocks
In light of these insights, Bagadia suggests considering the following five breakout stocks for investment:
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Bharti Hexacom Ltd:
- Buy Price: ₹1,504
- Target Price: ₹1,625
- Stop Loss: ₹1,440
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Poonawalla Fincorp Ltd:
- Buy Price: ₹366.3
- Target Price: ₹400
- Stop Loss: ₹350
-
Global Health Ltd:
- Buy Price: ₹1,269.95
- Target Price: ₹1,370
- Stop Loss: ₹1,210
-
Cholamandalam Financial Holdings Ltd:
- Buy Price: ₹1,780
- Target Price: ₹2,000
- Stop Loss: ₹1,680
- Gujarat Gas:
- Buy Price: ₹425
- Target Price: ₹460
- Stop Loss: ₹400
Final Thoughts
Investors should keep a keen eye on market movements and utilize a stock-specific strategy to navigate the current landscape. As the market reacts to global influences, identifying promising stocks can lead to strategic gains amidst the turbulence. For more insights on market trends, keep an eye on upcoming reports and analyses.
