Indian stock markets were set to conclude a three-session advance on Thursday, facing headwinds from a significant decline in metal shares that echoed global weakness and a guarded stance on rate-sensitive sectors preceding the Reserve Bank of India's monetary policy decision.
Benchmark Indices Retreat
At 12:27 IST, the benchmark Nifty 50 index fell by 0.62 percent to settle at 25,616 points. The BSE Sensex decreased by 0.59 percent, closing at 83,312.96. This cautious market sentiment emerged following a recent rally fueled by the India-US agreement, despite emerging concerns impacting specific industry segments.
Broader Market Performance
In the wider market on the National Stock Exchange, the Nifty 100 index registered a marginal decline of 0.12 percent. The Nifty Midcap 100 dipped slightly by 0.04 percent, while the Nifty Smallcap index experienced a more pronounced fall of 0.31 percent.
Sectoral Indices Show Divergence
Sectoral indices on the NSE displayed varied performances. The Nifty Auto index gained 0.20 percent, bolstered by expectations of stable domestic demand. Conversely, the Nifty IT index decreased by 0.36 percent, and the Nifty Metal index witnessed a substantial drop of 1.71 percent.
Other notable indices, including Media, Pharma, PSU Bank, Healthcare, and Consumer Durables, traded in positive territory, recording modest gains during the session.
Market Analysis and Technical Outlook
Nifty 50 Technical Perspective
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted that after displaying range-bound movement with an upward bias on Wednesday, the Nifty 50 slipped into weakness on Thursday due to subdued global cues, currently trading lower by approximately 80 points. The substantial upward gap formed on Tuesday remains partially unfilled after two sessions. If this gap persists open over the next couple of trading days, it could be interpreted as a bullish runaway gap, typically occurring during the middle of a trend. Immediate support levels are observed at 25,550, with resistance positioned at 25,800.
Short-Term Stock Recommendations
Nagaraj Shetti of HDFC Securities recommends two stocks for short-term consideration:
- Gabriel India Ltd: Consider buying at ₹962.50, with a target price of ₹1,022 and a stop-loss at ₹927, within a one-week timeframe. The downtrend appears to have concluded, with the stock price transitioning into a consolidation phase with positive bias in recent weeks. A key bottom formation is noted around ₹860 levels. The current rebound from lows is approaching a breakout from a down-sloping trendline resistance.
- Rico Auto Industries Ltd: Consider buying at ₹127.50, targeting ₹135 with a stop-loss at ₹123.50, over a one-week period. The sharp downward trend observed over the previous five weeks seems to have reversed this week. The stock price has rebounded strongly following the formation of a higher bottom reversal pattern at ₹111 levels and has maintained above the 20-week Exponential Moving Average support.
Disclaimer: The views and recommendations presented are those of individual analysts, experts, and broking companies, and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
