Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, opened higher on Thursday, buoyed by optimism surrounding an improving earnings outlook.
The Nifty 50 rose by 0.21% to 25,873.35, and the Sensex increased by 0.28% to 83,969.82, as of 9:15 IST.
In the last three sessions, both indices have climbed approximately 1.4%, with positive sentiment supported by an in-line December-quarter earnings season, even considering a one-time impact from labour code-related charges.
IT stocks, which previously faced a downturn due to concerns over AI-led disruptions, saw a rebound of 1% at the open. Analysts describe this rise as a tactical bounce following the recent selloff.
Market experts point out that favourable global cues and steady domestic buying are contributing to the upward movement in the markets, although global risks still loom.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The benchmark index Nifty 50 commenced trading with a positive outlook. However, similar to recent sessions, the index experienced some profit-taking during the initial hours of trading. Subsequently, renewed buying interest emerged in the latter half of the day, resulting in prices closing near the day’s high. Ultimately, Nifty 50 concluded the session slightly above 25,800, registering a gain of 0.37%.
The bulls have shown impressive momentum, marking their third consecutive session of gains in the market. While the advance has been steady rather than explosive, the persistent buying during intraday dips signals a robust bullish sentiment. From a technical standpoint, the index has closed above the critical 61.8% retracement level following last week’s decline, suggesting that the recent correction may have reached its conclusion. This development paves the way for a potential retest of the significant 26,000 mark.
As we approach the monthly expiry, traders should be mindful of possible resistance forming around the 26,000 levels. Yet the strong performance of heavyweight banking stocks positions Nifty favorably, making a move towards the all-time high region of 26,300 to 26,400 a distinct possibility in the near future. Given this outlook, traders are encouraged to maintain a positive bias and adopt a strategy of buying on dips. Immediate support levels to keep an eye on are around 25,650, with further support at 25,550. It’s essential to closely monitor these key levels and adjust trading strategies accordingly.
Stocks To Buy on Thursday- Osho Krishan
On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks – Sona BLW Precision Forgings Ltd, and Patanjali Foods Ltd.
Sona BLW Precision Forgings has recently demonstrated considerable buying interest, surpassing all major EMAs and the 200-DSMA after an extended duration. In the recent trading sessions, the stock has been consolidating above its significant bullish gap, indicating a period of stabilization prior to the subsequent stage of the rally. The technical indicators are strongly aligned with a bullish perspective, indicating the potential for a notable surge in the near future.
Hence, we recommend a BUY in Sona BLW Precision Forgings around ₹520 with a Stop Loss of ₹498 and a Target of ₹560-565
Patanjali Foods has shown a rebound from the lows of the 490 subzone in recent sessions and has surged above its 20 and 50 DEMA. From a technical perspective, the counter has shown a ‘Cup & Handle’ pattern, adding to the bullish quotient in the counter. Furthermore, the MACD histogram also portrays a bullish reversal signal on the daily time frame.
Hence, we recommend a BUY in Patanjali Foods around ₹530 with a Stop Loss of ₹499 and a Target of ₹570-575
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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