Domestic stock indices commenced trading on a buoyant note this Thursday, with investor sentiment receiving a significant boost from positive developments in international trade relations. The market's upward trajectory was primarily fueled by US President Donald Trump's decision to withdraw tariff threats against European nations, citing a preliminary agreement concerning Greenland. This move has been interpreted as a potential de-escalation in global trade tensions, creating a favorable environment for risk assets worldwide.
Market Opening Figures Reflect Optimism
The benchmark Nifty 50 index opened at 25,344.15, marking a substantial gain of 186.65 points or 0.74% from the previous close. Simultaneously, the Sensex began the trading session at 82,459.66, climbing by 550.03 points or 0.67%. These strong opening numbers were further supported by encouraging signals from global markets and growing anticipation surrounding a potential trade agreement between India and the United States.
Analyst Perspectives on Market Movement
Market analysts have identified the reduction in global trade tensions as a crucial factor behind today's initial surge. However, they caution that underlying volatility remains a concern. According to Osho Krishan, Senior Analyst of Technical & Derivatives at Angel One, the Nifty 50 experienced a gap-down opening earlier in the week, with selling pressure intensifying during initial hours and pulling the index toward the 24,900 level.
Krishan noted that some recovery emerged in the second half of Wednesday's session, allowing prices to rebound toward the 25,300 zone. Despite this, heightened volatility persisted, and the index eventually closed marginally above 25,150, registering a decline of 0.30%. This marks the third consecutive session of losses for the Nifty 50, which is now trading just above its long-term 200-day moving average.
Technical Analysis and Market Outlook
The intraday price action reflected considerable uncertainty, with prices touching key long-term support levels while oscillators entered oversold territory, triggering a technical bounce. However, the upside movement remained constrained, resulting in an indecisive candlestick pattern known as a Spinning Bottom on the daily chart. Given this recent price behavior, analysts maintain a cautious stance.
In the absence of clear bullish reversal signals, further downside cannot be ruled out. The weekly 50-day exponential moving average, positioned around the 24,900–24,800 zone, serves as immediate support. Conversely, today's session high near 25,300, which coincides with the November swing high, presents a significant resistance level. A decisive breakthrough above this threshold could potentially trigger short covering and initiate a short-term pullback. Market participants are advised that volatility is expected to remain elevated, and traders should avoid taking undue risks in this environment.
Stock Recommendations from Analysts
On stocks to consider for Thursday, Osho Krishan of Angel One has recommended two specific companies:
Hindustan Copper
Hindustan Copper is currently exhibiting a sustained upward trend, consistently trading above its significant exponential moving averages and demonstrating a pattern of higher highs. Technical indicators are strongly aligned with the prevailing price momentum. Therefore, a BUY recommendation is issued for Hindustan Copper around ₹550, with a Stop Loss set at ₹510 and a Target price of ₹600.
Ramco Cements
Ramco Cements has shown a notable rebound from the ₹980 subzone in recent sessions, coinciding with its 200-day simple moving average, suggesting the beginning of a counter-trend movement. From a technical standpoint, the MACD histogram has displayed buying momentum, resulting in a positive crossover. Additionally, the pattern of higher highs and higher lows, followed by strong buying activity above the 20-day exponential moving average, indicates that upward momentum is likely to continue in the near term. Consequently, a BUY recommendation is provided for Ramco Cements in the range of ₹1,060-1,050, with a Stop Loss at ₹1,010 and Target prices of ₹1,120-1,140.
Disclaimer: The views and recommendations presented above are those of individual analysts, experts, and broking companies, and do not represent the立场 of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions.
