After six consecutive sessions of gains, the Indian stock market witnessed profit booking on Tuesday, November 18, with the benchmark Nifty 50 index declining by 0.40 percent during morning trade. The index had successfully reclaimed the 26,000 mark in the previous session, but weak global market cues dampened investor sentiment.
Global Factors Weigh on Indian Markets
The decline in Indian markets mirrored the weakness in Asian peers, with Japan's Nikkei and Korea's Kospi both crashing by 3 percent. This followed an almost 1 percent drop in the S&P 500 and Nasdaq overnight as investors await key US economic data that was delayed by the government shutdown.
Adding to the pressure, diminishing expectations of a US Federal Reserve rate cut next month triggered a sell-off in global markets. Experts believe the Indian stock market may remain volatile in the short term due to these global factors, even as domestic fundamentals point to the possibility of a healthy upside in the medium term.
Technical Outlook and Market Strategy
On the technical front, market analysts observe that the market is struggling to gain directional momentum due to a confluence of headwinds and tailwinds. Anand James, Chief Market Strategist at Geojit Investments, noted that with both 26,130 and 25,840 levels intact, the struggle for directional momentum is visible.
"We expect slippages to 25,980 or 25,900, followed by upswing attempts. Alternatively, a direct rise above 26,022 could call for 26,130," James stated.
Expert Stock Recommendations for 1-2 Weeks
Market experts Vishnu Kant Upadhyay of Master Capital Services and Hitesh Tailor of Choice Equity Broking have recommended six stocks to buy for the next 1-2 weeks based on technical analysis.
Vishnu Kant Upadhyay's Picks
Sun Pharma: Target prices of ₹1,860 and ₹1,890 with stop loss at ₹1,675. Upadhyay highlighted that Sun Pharma's share price has shown a strong bullish resurgence as the stock successfully breaks out above its falling trendline resistance on the weekly timeframe, signaling the end of its medium-term consolidation phase.
Tata Communications: Target prices of ₹2,020 and ₹2,100 with stop loss at ₹2,045. According to Upadhyay, Tata Communications has delivered a clean breakout above its key horizontal resistance and successfully retested it, reaffirming structural strength.
Mahindra Lifespace Developers: Target prices of ₹430 and ₹440 with stop loss at ₹379. Upadhyay said the stock has registered a decisive breakout from its recent consolidation base, indicating a shift toward trend continuation.
Hitesh Tailor's Selections
Marico: Target price of ₹830 with stop loss at ₹715. Tailor pointed out that Marico has recently given a strong breakout from a sideways range on the weekly chart, accompanied by a sharp upside move.
Hero MotoCorp: Target price of ₹6,300 with stop loss at ₹5,500. The stock is maintaining a strong higher-high, higher-low structure, reflecting sustained bullish momentum according to Tailor.
HUDCO: Target price of ₹265 with stop loss at ₹225. HUDCO is forming a symmetrical triangle pattern on the daily chart, indicating a phase of consolidation before a potential breakout.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms. Investors should consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
