Global financial markets experienced a significant sell-off, sliding deeper into risk-averse territory. This downturn was highlighted by the Dow Jones Industrial Average plunging more than 550 points, while the Nasdaq index extended its decline, heavily influenced by losses in the technology sector.
Global Pressures and Domestic Resilience
The bearish sentiment on Wall Street was driven by investor anxiety ahead of key quarterly results from major retailers and the chip giant Nvidia. Further adding to the uncertainty was the long-delayed US jobs data, scheduled for release on November 20. Asian markets mirrored this negativity, opening sharply lower with indices in Japan, South Korea, and Taiwan all witnessing broad-based corrections.
The fragile global investor sentiment is being attributed to a combination of factors, including rising US bond yields, stretched valuations in global tech stocks, and persistent pockets of sticky inflation. These elements have collectively reinforced a cautious tone across international markets.
Bullish Outlook for Indian Indices
In contrast to the global gloom, the sentiment for the Indian stock market appears positive. Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Nifty 50 index is showing strength after inching close to the 26,000 mark.
Speaking on the Nifty 50's outlook, Parekh stated, "The Nifty 50 index surged ahead during the session to close above the 26000 zone with bias getting stronger and can expect further rise in the coming days." She highlighted that the index is poised to retest its previous peak of 26,277. A successful break above this level could establish a fresh bullish trend on Dalal Street.
Parekh identified 25,700 as a crucial near-term support level that must be held to maintain the positive bias. On the upside, she anticipates the index to reach for targets of 26,300 and 26,700.
Bank Nifty Breaks Key Hurdle
The banking sector index also displayed robust performance. According to Parekh, the Bank Nifty index witnessed a convincing breakout above the significant resistance at the 58,600 level. With a strong gap-up opening, the index entered a new territory, signaling potential for further upward movement.
She noted that the Bank Nifty has a major support base near its 50-Day Exponential Moving Average (DEMA) at the 57,000 level. Sustaining above this support is key, and Parekh expects the index to aim for higher targets of 60,500 and 63,000 in the near future.
For the immediate session, Parekh sees Nifty 50 support at 25,900 and resistance at 26,200. The Bank Nifty's daily range is projected between 58,600 and 59,600.
Today's Stock Picks by Vaishali Parekh
For investors looking for actionable ideas, Vaishali Parekh recommended three stocks to buy today:
- Paytm: Buy at ₹1325, Target ₹1360, Stop Loss ₹1290
- Sundram Fasteners: Buy at ₹960, Target ₹1000, Stop Loss ₹945
- IRCON International: Buy at ₹167, Target ₹175, Stop Loss ₹162
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.
