The Indian stock market experienced a day of slight gains on Friday, navigating through a rollercoaster of volatility. The Nifty 50 index managed to climb by 12 points, closing at a respectable 24,346. Meanwhile, the BSE Sensex saw a notable increase, finishing 259 points higher at 80,501. The Bank Nifty index also enjoyed a modest rise, closing at 55,115, up by 28 points.
Sector Performance Highlights
In this session, various sectors showcased mixed performances:
- Gaining Sectors:
- Media
- Energy
- IT
- Oil & Gas
These sectors recorded gains ranging from 0.3% to 0.7%.
- Declining Sectors:
- Power
- Metal
- Telecom
- Pharma
- Realty
- Consumer Durables
Conversely, these sectors faced losses between 0.5% and 2%.
Market Outlook: Expert Insights
Mehul Kothari, Deputy Vice President of Technical Research at Anand Rathi, shared his insights on the current market trends. He noted that the Indian stock market is hitting resistance within the 24,600 to 24,800 range. Kothari anticipates a potential correction following an impressive rally in April 2025.
He explained, "The Nifty 50 has surged nearly 2,800 points from its recent low of 21,750, showing signs of potential fatigue at these elevated levels. The appearance of negative RSI divergence on the daily chart suggests we might see a pullback soon." He added that this resistance zone aligns with a previous supply area and ongoing geopolitical uncertainties could trigger short-term corrections.
Support Levels and Future Projections
Kothari pointed out that the 24,000 to 23,800 range could serve as a significant support zone, where buying interest may resurface. He mentioned that the medium-term outlook remains positive, with the potential for the Nifty to reach new all-time highs as the year progresses. However, he urged traders to exercise caution near resistance levels and to consider re-entering long positions during favorable dips.
Bank Nifty Analysis
Discussing the Bank Nifty, Kothari remarked on its impressive performance in recent weeks, noting a rally towards the 56,000 mark with a 6% gain last month. However, he identified signs of negative RSI divergence on the monthly chart, which could signal a slowdown in momentum. He emphasized that a sustained rise above 56,000 is essential for the next phase of the rally, while 54,000 serves as a critical support level. If this support breaks, a correction may follow.
Stock Recommendations Under ₹200
For investors looking for stocks under ₹200, Kothari has highlighted three promising options:
-
MRPL:
- Buy: ₹132 to ₹135
- Target: ₹160
- Stop Loss: ₹120
-
RCF:
- Buy: ₹134 to ₹138
- Target: ₹158
- Stop Loss: ₹125
- Nykaa:
- Buy: ₹188 to ₹193
- Target: ₹215
- Stop Loss: ₹178
With these insights and recommendations, investors can navigate the current market landscape with a more informed perspective. Always remember to conduct thorough research or consult a financial advisor before making investment decisions.
