The Indian stock market continued its upward trajectory this week, buoyed by robust Q4 earnings from major private banks like ICICI Bank and HDFC Bank. On Monday, the Nifty 50 index surged by 273 points, closing at 24,125, while the BSE Sensex soared by 855 points to reach 79,408. The Bank Nifty index also showcased impressive gains, climbing 1,014 points to settle at 55,304. Overall, the market exhibited strong sectoral performance, particularly in the IT and automotive sectors.
Strong Sector Performance
The market’s positive momentum was underscored by several key sectors:
- Nifty IT jumped 2.5%, driven by significant gains in Tech Mahindra and HCL Tech.
- The Nifty Auto index rose by over 2%.
- Indices in Metal, Oil & Gas, PSU Bank, and Realty all recorded gains exceeding 2%.
Conversely, the Nifty FMCG index struggled, falling nearly 1% due to setbacks for major companies like ITC, Hindustan Unilever, and Varun Beverages. On a broader scale, mid and small-cap stocks outperformed their larger counterparts, with the Nifty Midcap 100 climbing 2.5% and the Nifty Small Cap 100 increasing 2.2%.
Market Insights and Expert Opinions
Looking ahead, Siddhartha Khemka, Head of Research at Motilal Oswal, expressed optimism about the market’s trajectory. He stated, "We anticipate that the positive momentum will persist, driven by strong domestic indicators and stock-specific movements as we continue to receive Q4 earnings reports." Notable upcoming results include those from HCL Tech, Havells, AU Small Finance Bank, Tata Communications, and Waaree Energies.
Nagaraj Shetti, a Senior Technical Research Analyst at HDFC Securities, shared insights on the Nifty 50, noting its strong underlying trend. "A sustainable move above 24,200 could propel the index towards the next resistance level of 24,550," he stated, adding that immediate support is found at 23,900.
Bank Nifty Outlook
Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta, discussed the Bank Nifty outlook, highlighting its recent breakout above the previous all-time high of around 54,470. He explained, "As long as this level holds, we could see the index rally towards 56,000–56,300. Therefore, a ‘buy on dips’ strategy is advisable."
Stocks Under ₹100 to Consider
For investors eyeing stocks priced under ₹100, experts have curated a list of promising picks for today:
- Texmo Pipes: Buy between ₹66 and ₹68, aiming for targets of ₹70, ₹72, and ₹75. Suggested stop loss: ₹64.
- Geojit Financial Services: Target a buy range of ₹76.50 to ₹77.50, with targets of ₹79.50, ₹82, and ₹85. Suggested stop loss: ₹74.50.
- Sterlite Technologies: Recommended to buy on dips at ₹85.50, with a target of ₹89.70 and a stop loss at ₹83.
- Castrol Energy: Buy at ₹60, aiming for a target of ₹65. Suggested stop loss: ₹58.
Conclusion
With a favorable outlook supported by strong earnings reports and positive market trends, investors have a range of opportunities in both established and undervalued stocks. As always, careful analysis and strategic planning are essential for navigating the ever-evolving landscape of the Indian stock market.
