Given that Tata Consultancy Services is scheduled to release its financial results later today, spotlight will shift to the domestic earnings season.
As of 9:21 IST, the S&P BSE Sensex had lost 0.22% to 74,880.15, while the NSE Nifty 50 had fallen 0.24% to 22,700.35.
According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the US bond yields have increased due to the country’s higher-than-expected inflation rate. Although this is negative for foreign portfolio investments, it is not expected to have an effect on the robust Indian market, where domestic liquidity is the primary driver of the surge.
Amidst mixed global cues ahead of US inflation data, metal, public sector undertakings (PSU) banks, and oil and gas companies led the way as the Sensex and Nifty 50 concluded the session on a bullish note on Wednesday.
The NSE Nifty 50 rose 0.49% to 22,753.80, hitting an all-time high in intraday trading for the third day in a row, while the S&P BSE Sensex gained 0.47% to 75,038.15.
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Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities
The benchmark index is in a strong uptrend across all the time frames, forming a series of higher tops and bottoms. It has also registered a new all-time high at 22,775 levels, representing bullish sentiments. We expect this momentum to likely gear up towards 23,000–23,300 levels in the upcoming weeks. Hence, we recommend that traders adopt a buy-on-dips strategy. On the other hand, the crucial support zones are placed around 22,500–22,300 levels. The benchmark index is also well placed above its 20, 50, 100, and 200-day SMA, and these averages are also inching up along with the price rise, indicating a positive bias. The daily and weekly strength indicator RSI is in positive terrain, which signals rising strength, said Rajesh Palviya, SVP, Technical and Derivatives Research, Axis Securities.
In the current series, Nifty 50 has witnessed a long buildup with a price gain of 1.44% (324 points) and an increase in open interest by 7%. As per the options data for the weekly expiry scheduled for April 18, the resistance is indicated at 23,000 and 23,200, while support is at 22,500 and 22,700, explained Palviya.
Also Read: Gold, silver prices hit new highs on strong US inflation figures, US Fed rate cut buzz
Stocks in focus today – Stock recommendations for Friday by Rajesh Palviya
The stock is in a strong uptrend across all the time frames, forming a series of higher tops and bottoms. The stock is strongly supported with a 100-day SMA (1,104), which confirms a bullish trend. The daily band Bollinger buy signals signify increased momentum. With yesterday’s strong gains of 6%, the stock has decisively broken out of the “multiple resistance” zone of 1,185 levels on a closing basis, indicating a strong comeback of bulls. The daily, weekly and monthly strength indicator RSI is in a positive terrain, which indicates rising strength, said Rajesh.
Investors should buy, hold, and accumulate this stock with an expected upside of 1,250–1,385 with a downside support zone of 1,180–1,110 levels, advised Palviya.
United Spirits Ltd for the April series has seen price gains of 5.52% (63 points) and a significant increase in open interest of almost 50%, indicating a strong long build up, while high OI concentration is seen at 1,220 call strike followed by 1,250 and 1,300, indicating a probable resistance zone, while support is seen at 1,150 and 1,100 for the expiry, explained Rajesh.
Deepak Nitrite Ltd (CMP: ₹2,302)
With Wednesday’s price close, the stock decisively broke out of the past three months down-sloping channel on a long basis. This breakout is accompanied by rising volumes, indicating rising participation. The stock has recaptured its 20, 50, 100, and 200-day SMA and rebounded sharply. The daily and weekly strength indicator RSI is in positive territory, which signals increased participation, explained Palviya.
Investors should buy, hold and accumulate this stock with an expected upside of 2,400-2,530 with a downside support zone of 2,250-2,200 levels, advised Rajesh.
Deepak Nitrite has seen price gains of 7.46% (160 points) and an increase in open interest of 12%, indicating a long buildup. In the April series, there has been a high OI concentration at the 2,400 call strike, followed by 2,440 and 2,480, indicating a probable resistance zone, while support is seen at 2,250 and 2,200, said Palviya.
Nippon Life India Asset Management Ltd (CMP: ₹550.25)
The stock is in a strong uptrend across all time frames, forming a series of higher tops and bottoms. It is well placed above its 20, 50, 100, and 200-day SMA, which confirms the bullish trend. It has also decisively broken out its “multiple resistance” zone at 545 on a closing basis, indicating a positive bias. The stock has also registered an all-time high at 551, which indicates bullish sentiments, said Rajesh.
Investors should buy, hold, and accumulate this stock with an expected upside of 575–650 with a downside support zone of 530–510 levels, advised Palviya.
Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on April 12
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 decisions.
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Published: 12 Apr 2024, 10:04 AM IST