Sensex and the Nifty 50 finished Thursday’s trading on a flat note despite setting new highs. In intraday trade, the Sensex and Nifty 50 touched new record highs of 74,245.17 and 22,525.65 amid the bumpy ride. However, it ended the truncated week on a positive note.
Market analysts attribute the success of the benchmark indices record highs to US Fed Chairman Jerome Powell’s dovish remarks during his hearing before Congress on Wednesday. Metal stocks saw strong purchasing as they rose 1.38% to become the top-gaining sector. Nifty Midcap 50 Index was up 0.23%, while Nifty Smallcap Index was up 0.85%, indicating that broader markets were also contributing to the positive sentiment on Thursday’s session
On Thursday, the 30-share BSE Sensex ended higher by 33.40 points or 0.05% at 74,119.39 level while the Nifty 50 closed at 22,493.55 level, up 19.50 points or 0.09%.
Also Read: Stock market today: Nifty 50, Sensex hit record highs; mid, smallcaps outperform
“Next week investors will take cues from the outcome of the European Central Bank (ECB) interest rate meeting and US Non-Farm Payroll data to be released on Friday. Also, the second set of economic data would continue to drive the market sentiments,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
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Also Read: Sensex, Nifty 50 at record high; is market overheated? What should investors do?
Nifty 50 Outlook by Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities.
The index has registered a new high at 22,525, indicating bullish sentiments. The short-, medium-, and long-term trend is still intact and bullish as the index continues forming higher tops and bottoms across all the time frames. Since the past couple of weeks, the index has been well placed and sustaining above its breakout zone of 22,200 levels, indicating a positive bias. The crucial support zone is around 22,200–21,800 levels, whereas, on the upside, the index may extend its momentum towards 22,600–22,900 levels in upcoming weeks. The daily and weekly RSI are in favourable terrain, which signals rising strength.
There has been a long buildup in the Nifty 50, with a price gain of 2.50% and a 14% increase in OI. On Thursday’s session, there was a long unwinding overall, exhibiting a positive trend. On the options front, 22,800 and 23,000 calls have high OI, and in Put, it’s at 22,000 and 22,300, so the range for Nifty 50 is likely to be between 22,000 and 23,000, while the pivotal level will be 22,500, explained Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities.
Stock Recommendations By Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities.
Avanti Feeds Ltd (CMP: ₹554)
On the daily chart, the stock has confirmed “Flag” formation—a continuation pattern that shows a strong uptrend. Recently, the stock has recaptured a 20-day SMA and rebounded sharply, which reconfirms the bullish trend. This breakout is accompanied by huge volumes, which signals increased participation. The stock is well placed above its 50, 100, and 200 SMA, and these averages are also inching up along with rising prices, which supports bullish sentiments, said Rajesh.
The daily, weekly, and monthly strength indicators for RSI are positive terrains that show sustained strength.
Investors should buy, hold, and accumulate this stock with an expected upside of ₹600–685, with a downside support zone of ₹535–513, advised Palviya.
The stock is in a strong uptrend in the short to medium term, forming a series of higher tops and bottoms, indicating a positive bias. The stock is well placed above its 20, 50, 100, and 200-day SMAs, and these averages are also inching up along with rising prices, which confirms a bullish trend. The daily “band bollinger” buy signal indicates increased momentum. In the past couple of weeks, rising volumes signify increased participation. With the current week’s close, the stock has decisively broken out of its past 3-5 weeks’ multiple resistance zone of 153 on a closing basis, which signals a strong comeback of bulls, explained Rajesh.
Investors should buy, hold, and accumulate this stock with an expected upside of ₹170-178, with downside support zone of ₹153-146 levels, advised Palviya.
Since Sept. 22, the stock was consolidating within 2,800–2,300 levels. However, with the current week’s strong run-up, the stock has decisively broken out of its consolidation zone at 2,800 levels. This breakout is accompanied by huge volumes, indicating increased participation. On the weekly chart, the stock confirmed a trend change as it formed higher tops and bottoms formation. The daily “band bollinger” buy signal suggests increased momentum, explained Palviya.
Investors should buy, hold, and accumulate this stock with an expected upside of ₹3,000–3,150 with a downside support zone of ₹2,800–2,700, advised Rajesh.
Pidilite Industries, in the current expiry, has seen short covering with price gains of 3.20% and a 5% decrease in open interest, while for the day, there was a long buildup seen in the counter, indicating an up move in the stock. From the options data, the call with a high OI concentration is at 2,900 / 2,960 / 3,000, suggesting probable resistance, and on the put side, 2,760 / 2,700 has a high OI, suggesting support, said Palviya.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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Published: 08 Mar 2024, 08:38 AM IST