Market Ends Flat Ahead of Bihar Election Results
Indian stock market benchmarks Sensex and Nifty 50 closed nearly unchanged on Thursday as investors opted for profit booking ahead of the crucial Bihar election outcome. The Nifty 50 settled at 25,879 points, inching closer to the psychologically significant 26,000 mark.
This week has seen the index trading in positive territory after two consecutive weeks of declines. Market analysts suggest that if the Bihar election results align with expectations, the market could extend its gains further. However, any unexpected outcome might trigger short-term volatility in trading sessions.
Expert Analysis on Market Outlook
According to Ajit Mishra, Senior Vice President of Research at Religare Broking, some consolidation appears likely following the recent rally. "The Nifty 50 has approached the 26,000–26,100 resistance zone, which coincides with its previous swing high," Mishra noted, while emphasizing that the overall market sentiment remains constructive.
The resilience in key sectors such as banking and information technology continues to support market fundamentals. Mishra advised traders to adopt a stock-specific approach, focusing on sectoral outperformers including banking, automotive, and metals, while maintaining disciplined risk management strategies to navigate potential volatility.
Three Stock Recommendations for Short-Term Gains
Mishra has identified three stocks with favorable technical setups for potential gains over the next one to two weeks:
Adani Ports and Special Economic Zone
Buy Recommendation | Target Price: ₹1,620 | Stop Loss: ₹1,430
Adani Ports is demonstrating a robust bullish structure, having decisively broken through its multi-month resistance zone with substantial trading volumes. This breakout from a volatility contraction pattern indicates the beginning of a potential expansion phase after a prolonged consolidation period.
The stock is now trading convincingly above its short to long-term exponential moving averages across multiple timeframes, signaling a significant bullish shift in long-term sentiment. "The recent swing low near ₹1,430, aligning with the 20-day EMA, will serve as crucial intermediate support. The stock appears positioned to retest its all-time high in the near term," Mishra explained.
Bharat Forge
Buy Recommendation | Target Price: ₹1,520 | Stop Loss: ₹1,320
Bharat Forge is exhibiting strong bullish momentum as its price has surpassed the previous swing high with increasing trading volumes. The stock's position above key exponential moving averages (50, 100, and 200 EMA) underscores sustained strength and positive bias.
The formation of higher lows, combined with a sharp recent upswing, highlights persistent buying interest and reinforces the prevailing bullish sentiment. "Traders may consider accumulating the stock within the identified range to capitalize on the ongoing upward momentum," Mishra suggested.
ICICI Prudential Life Insurance Company
Buy Recommendation | Target Price: ₹670 | Stop Loss: ₹609
There appears to be rotational buying activity within the life insurance sector, with ICICI Prudential Life Insurance emerging as a notable participant. After an extended consolidation phase, the stock is showing renewed buying interest supported by healthy volumes.
The stock has broken out of a base formation near its trendline support and reclaimed its 200-day EMA, signaling a potential trend reversal from downtrend to uptrend. "With momentum gradually strengthening, a sustained move above the breakout zone could pave the way for an upside towards ₹665–₹670, offering a favorable accumulation opportunity," Mishra stated.
Disclaimer: This analysis is for educational purposes only. The views and recommendations expressed are those of the expert. Investors should consult certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
