Stock Market Update: Sensex and Nifty Experience a Rollercoaster Day

This Friday, the Indian stock market showcased a remarkable start, with the Sensex and Nifty 50 indices initially climbing due to strong foreign investments and positive trends in global markets. However, as the day progressed, both indices faced challenges, primarily led by declines in Axis Bank shares. While the BSE benchmark index kicked off with a surge of 329.23 points, hitting 80,130.66, it later struggled to maintain its gains, resulting in a drop of 174.24 points to 79,627.19. Similarly, the Nifty 50 began with an increase of 118.75 points, reaching 24,365.45, but eventually fell by 94.35 points to settle at 24,152.35.

Market Dynamics and Expert Insights

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, provided an overview of current market conditions, highlighting a mixed bag of opportunities and challenges. He pointed out that the influx of foreign institutional investors (FIIs), which has totaled ₹29,513 crores in the past week, serves as a crucial positive factor. This shift indicates a notable change from earlier trends where investors favored the US markets during periods of a strong dollar.

• Key Insights from Dr. Vijayakumar:
  • FII Buying Trend: The ongoing foreign investments are expected to persist, discouraging bearish sentiments among investors.
  • US-India Trade Relations: Comments from US Treasury Secretary Scot Bessent suggest that India may be on track to finalize a bilateral trade agreement with the US, further boosting market sentiment.

Nifty 50 Technical Outlook

Nifty 50 has recently shown a "V" shaped recovery, reflecting a bullish sentiment among investors. Current positions above the 20, 50, 100, and 200-day Simple Moving Averages (SMA) indicate a positive trend.

• Targets and Support Levels:
  • Upside Potential: Expected to rise towards the 24,800-25,000 range.
  • Support Zone: Key support lies between 24,000-23,800, presenting buying opportunities during minor corrections.

Stock Recommendations for Investors

Several stocks have caught the attention of analysts, suggesting promising potential for investors:

• Inox Wind Ltd (CMP: ₹182)

  • The stock has recently broken past a four-month resistance level of 178, signaling bullish momentum with rising volumes.
  • Target Range: Anticipated upside of ₹200-218 with a support zone at ₹173-165.

• Hero MotoCorp Ltd (CMP: ₹3,962)

  • Surpassing its seven-month downtrend at 3,750 confirms a short-term trend reversal.
  • Target Range: Expected to reach ₹4,250-4,400, with support at ₹3,830-3,750.
• Triveni Engineering & Industries Ltd (CMP: ₹436)
  • The stock has confirmed a rounding bottom breakout at 420, indicating a positive outlook.
  • Target Range: Projected upside to ₹485-513, with downside support at ₹413-400.

Concluding Thoughts

As the day progressed, the stock market demonstrated volatility but remains influenced by strong foreign investments and positive trade prospects. Investors are advised to keep an eye on key support levels and consider the mentioned stocks for potential gains. For more recommendations, check out expert tips on trending stocks in the market today.