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The stock market commenced the week on a somber note, with the benchmark Nifty 50 index concluding the trading session with a 0.63% decline, settling at 24,680.90. The Bank Nifty followed suit, experiencing a 0.79% decrease to reach 56,084.90. A broad-based sectoral downturn was observed, with the exception of the FMCG sector, as Metals and Realty led the decliners. The broader market indices also reflected this negative sentiment, with mid- and small-cap segments undergoing corrections ranging from 0.84% to 1.26%. This paints a picture of overall market hesitancy and potential headwinds that investors are currently grappling with.
The technical analysis suggests a continuation of the weak sentiment as the Nifty trades below the 24,800 level. Shrikant Chouhan, Head of Equity Research at Kotak Securities, anticipates a potential downside correction to the 24,550–24,500 range. Conversely, a break above the 24,800 mark could trigger a pullback rally, potentially extending up to 24,900. This highlights the importance of monitoring these key levels for short-term trading strategies. For Bank Nifty, the 55,500–55,000 area is identified by Bajaj Broking as a crucial support zone, indicating a level where buying interest might emerge to prevent further declines. The interplay between these support and resistance levels will likely dictate the market's near-term trajectory.
The market's current struggles are attributed to a confluence of domestic and global factors. On the domestic front, disappointing earnings reports and persistent outflows of foreign funds are contributing to the subdued market sentiment. The banking sector, which had previously demonstrated resilience, is now facing renewed pressure across the board, with the exception of major players such as ICICI Bank and HDFC Bank. This added pressure on the banking sector is further exacerbating investor concerns. Globally, uncertainty surrounding trade deals, despite the strength observed in the US markets, is contributing to a cautious approach among market participants. This highlights the interconnectedness of global markets and the impact of geopolitical events on investor confidence.
Several market experts have provided recommendations on specific stocks that they believe present buying opportunities. Sumeet Bagadia, Executive Director at Choice Broking, has identified Torrent Pharmaceuticals Ltd (TORNTPHARM) and UPL Ltd as potential buys. Bagadia recommends buying TORNTPHARM around ₹ 3622.9, with a stop-loss at ₹ 3496 and a target price of ₹ 3877. He cites the stock's strong bullish momentum, its all-time high trading price of ₹3635, and its breakout from a multi-month consolidation zone as reasons for his recommendation. Similarly, Bagadia recommends buying UPL at around ₹729.85, with a stop-loss at ₹704 and a target price of ₹781, highlighting the stock's bullish momentum, rising price structure, and potential breakout from a recent consolidation zone.
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommends Punjab National Bank (PNB), Dabur India Ltd, and REC Ltd. Dongre suggests buying PNB at around ₹107, with a stop-loss at ₹104 and a target price of ₹114. He emphasizes the stock's strong, continued bullish pattern and its potential for a price retracement towards the ₹ 114 level. For Dabur, Dongre advises buying at ₹522, with a stop loss at ₹515 and a target of ₹535, citing similar bullish patterns and support levels. Regarding REC Ltd, Dongre recommends buying at ₹392, with a stop-loss at ₹382 and a target price of ₹410, highlighting the stock's strong bullish trend and the support level at ₹382.
Shiju Koothupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher, recommends Lloyds Enterprises Ltd and Syngene International Ltd. Koothupalakkal suggests buying Lloyds Enterprises Ltd at around ₹81, with a target of ₹87 and a stop-loss of ₹79. He notes the stock's consolidation after a small correction and the bullish candle formation on the daily chart. For Syngene International Ltd, Koothupalakkal recommends buying at around ₹690, with a target price of ₹730 and a stop-loss of ₹675, emphasizing the stock's decent pullback from the ₹620 zone and its movement past the 50EMA zone. These recommendations are based on technical analysis and chart patterns, providing traders with potential entry and exit points.
It is important to note that these stock recommendations are based on the analysis of individual experts and carry inherent risks. Investors should conduct their own due diligence and consider their own risk tolerance before making any investment decisions. The stock market is inherently volatile, and past performance is not indicative of future results. Furthermore, the global and domestic factors mentioned earlier can significantly impact market sentiment and individual stock performance. Therefore, a comprehensive understanding of market dynamics and risk management strategies is crucial for successful investing. The recommendations provided in the article should be viewed as starting points for further research and analysis, rather than definitive guides to investment success. Consulting with a qualified financial advisor is always recommended before making any investment decisions.