Indian equity benchmarks snapped a four-session losing streak on Friday, December 19, closing firmly in the green. The rally was fueled by a combination of a stable rupee, positive global market cues, and a Bank of Japan policy decision that met investor expectations.
Market Rally: Sensex and Nifty Rebound
The Sensex surged 448 points, or 0.53%, to settle at 84,929.36. Similarly, the Nifty 50 index climbed 151 points, or 0.58%, to finish the trading day at 25,966.40. The broader market indices witnessed even stronger performance, significantly outperforming the frontline benchmarks. The BSE Midcap index jumped 1.26%, while the BSE Smallcap index gained 1.25%.
Expert Analysis: Market Sentiment and Key Levels
Sumeet Bagadia, Executive Director at Choice Broking, noted a marked improvement in market sentiment. He pointed out that the Nifty 50 staged a robust recovery after successfully testing its 50-day Exponential Moving Average (DEMA) support level near 25,750.
"The index is now sustaining above this crucial 50-DEMA support and closed around the 25,950 mark on Friday," Bagadia stated. He identified the immediate resistance zone between 26,000 and 26,050. A decisive close above this band, according to him, would significantly strengthen the bullish case for the market.
On the flip side, Bagadia cautioned that a break below the 25,750 support level could weaken sentiment, potentially leading the index to test the next major support in the 25,400 to 25,350 range.
Top Stock Recommendations for Today
Based on the current technical setup, Sumeet Bagadia has identified five potential breakout stocks for traders and investors. Here are his specific buy recommendations with targets and stop-loss levels:
1. Coromandel International: Consider buying at around ₹2425. The recommended target price is ₹2626, with a strict stop loss set at ₹2323.
2. Lumax Auto Technologies: Buy near ₹1545. The expected upside target is ₹1650, and the stop loss should be placed at ₹1495.
3. Hexaware Technologies: A buy call at ₹791. The target for this stock is ₹850, while the stop loss is advised at ₹760.
4. Strides Pharma Science: Purchase at approximately ₹930. The price target is ₹1000, with a stop loss at ₹895.
5. Sai Life Sciences: Buy at ₹917. The analyst sees a potential rise to ₹985, and recommends keeping a stop loss at ₹888.
Disclaimer: This news article is for educational purposes only. The views and investment tips expressed are those of the individual analyst. They do not represent the views of Mint. Readers are strongly advised to consult with certified investment experts before making any financial decisions.
