Stock market news: With mixed quarterly earnings, elevated geopolitical tensions, and a surge in US government yields, domestic market benchmark indices ended the week in deep red, extending losses for the fourth straight session on Monday. Broad markets lagged the frontline indices, with the Sensex and Nifty 50 falling more than 1% each.
Nifty 50 lost 260.90 points to settle at 19,281.75. The Sensex falls 825.74 points to close at 64,571.88.
Also Read: Nifty Smallcap index drops over 2% to 2-week low; NBCC, IRB lead the sell-off today
Sensex closed at its lowest level in four months after breaching through 65,000. The Nifty 50 and the midcap index close at their lowest points in almost two months. The Nifty midcap 100 closed 2.88% lower, and the Nifty smallcap index lost 3.80%.
The overall market capitalisation of the BSE-listed firms dropped to nearly ₹316 lakh crore from ₹324 lakh crore in the previous session, making investors poorer by about ₹7.5 lakh crore in a day.
According to Vinod Nair, Head of Research at Geojit Financial Services, despite the healthy performance of private banks and marginal reductions in oil prices, investor confidence remained pessimistic, and a widespread consolidation persisted in the domestic markets.
The global markets echoed the same trend, as the unrest in West Asia has the potential to spiral further. Increased apprehensions surrounding prolonged elevated interest rates fuelled a continued upward movement in the US 10-year yield.
“Amid worries over moderation in growth on account of elevated interest rates and higher energy prices, heightened risk aversion was witnessed in the Indian mid- & small-cap space, banks, metals, and energy stocks. While a period of consolidation in the short term seems certain, the extent of this phase will be shaped by global factors,” said Nair.
Also Read: BSE Midcap and SmallCap indices see steep decline, reach 7-week lows
Dussehra Stock Pick
Today’s stock market is closed on account of Dussehra. Sumeet Bagadia, Executive Director at Choice Broking recommends HDFC Life Insurance Company Ltd as his Dussehra Pick 2023 at ₹642 and upto ₹620 for target price of ₹725/775.
Also Read: Is share market open on Dussehra? Check full list of stock market holidays 2023
HDFC Life Insurance Company is presently trading at ₹642, according to Sumeet. There was a breakout and retest at the breakout level not too long ago. The price may get upward momentum if it closes over ₹650.
In the event that there are any corrections, it is worthwhile to take into account buying opportunities at about ₹620. Moreover, the technical indications for HDFC Life Insurance Company are mainly positive.
“The stock has closed above key moving averages, including the 50-day, 100-day, and 200-day Exponential Moving Averages (EMA), signaling strength across various timeframes. The Relative Strength Index (RSI) stands at 54, suggesting balanced momentum with room for further price appreciation.
In summary, with a solid foundation, strong moving average performance, and balanced momentum, HDFC Life Insurance Company appears well-positioned for a bullish trajectory. Traders and investors may want to explore potential long positions, while also being prepared to buy on dips around 620. The short-term target range could be 725-775,” explained Bagadia.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 24 Oct 2023, 10:42 AM IST