Stock market today: Indian benchmark indices traded marginally higher on Thursday, as optimism from easing crude oil prices and improving geopolitical conditions offset concerns stemming from the US Federal Reserve’s hawkish policy outlook.
At 13:05 IST, the Nifty 50 was up 0.15% at 24,114 . 40, while the BSE Sensex gained 0.20% to 77,307.41. The cautious advance comes after a strong four-session rally that lifted the Nifty and Sensex by around 4% and 4.5%, respectively.
Investor sentiment continued to be supported by softer oil prices. Brent crude fell about 1.7% to $78.2 per barrel after the United States and Iran signed an interim peace agreement, easing concerns about supply disruptions and reducing global inflationary pressures.
Market breadth remained broadly positive, with 14 of the 16 major sectoral indices trading in the green. Broader markets outperformed the benchmarks, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising 0.2% and 0.4%, respectively.
However, gains were capped by weakness in information technology stocks. The Nifty IT index declined 1.5% after the Federal Reserve signalled the possibility of another rate hike later this year, prompting investors to reassess the outlook for rate-sensitive sectors.
A higher US interest-rate environment can reduce the appeal of emerging markets such as India for foreign investors and may also weigh on spending across key export markets. This remains a crucial factor for Indian IT companies, which derive a significant share of their revenue from the United States.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
Nifty 50 continued to show consolidation at the highs on Thursday and is currently trading flat. After opening higher, the market was not able to sustain above the 24,100 hurdle for an extended period and slipped into weakness from the swing high of 24,139 around 10 AM.
Repeated testing of 24,100 resistance could eventually lead to a decisive breakout in the near term. The lower support is at 23,800, and the near-term upside targets to watch are around the 24,500 level.
Buy Indian Railway Finance Corporation Ltd (IRFC) at ₹100, Target at ₹105, Stoploss at ₹97, Timeframe 1 week
The Railways’ finance stock witnessed a sharp breakout on Wednesday after moving into consolidation over the previous few sessions. The stock price has sustained above the hurdle of the down-sloping trend line at the ₹99.50 levels so far today. The volume pattern and daily RSI indicate a positive signal.
Buy Lloyds Enterprises Ltd at Rs 77.50, Target at ₹82, Stoploss at ₹75, Timeframe 1 week
The sharp upside momentum resumed in Lloyds Enterprises after the minor downward correction. The overall bullish chart pattern indicates an attempt at a decisive upside breakout of the larger consolidation pattern at ₹75.50. Volume has shot up during the stock price’s upside breakout, and the daily 14-period RSI shows a positive signal.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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