The Indian stock market concluded the trading week on a negative note this Friday, witnessing significant declines in its benchmark indices. The Sensex dropped by approximately 400 points to settle at 85,232, while the Nifty 50 fell by about 124 points, closing the session at 26,068.
What Drove the Market Sell-Off?
Analysts attributed the negative closing primarily to weak global indicators. A sharp decline in US technology stocks, triggered by ambiguous US jobs data, created widespread uncertainty about future interest rate decisions. This global pessimism spilled over into the Indian markets, prompting a sell-off.
Despite the downturn, market experts highlight the underlying strength of the domestic investment landscape. Puneet Singhania, Director of Master Trust Group, commented that the market's approach towards record highs underscores the robust confidence of domestic investors in India's long-term growth story. He noted that while the domestic environment remains positive, significant reallocation of funds from Foreign Institutional Investors (FIIs) is being hampered by global uncertainties and currency-related issues.
Technical Outlook and Trade Setup for Monday
The technical charts suggest the possibility of further weakness. Rupak De, Senior Technical Analyst at LKP Securities, pointed out the formation of a bearish Harami pattern on the Nifty 50's hourly chart. This, coupled with the index falling below the 21 Exponential Moving Average (EMA) on the same chart, signals potential for more declines.
De stated that the outlook for bulls appears challenging in the near term, with the downtrend possibly extending towards the 25,920–25,900 range. For any recovery, the index must break through the immediate resistance level positioned at 26,166. A successful breakout above this point could help improve market sentiment.
8 Intraday Stock Picks from Market Experts
Despite the broader market weakness, market experts have identified potential opportunities for intraday trading on Monday. The recommendations come from analysts including Sumeet Bagadia of Choice Broking, Ganesh Dongre of Anand Rathi, and Shiju Koothupalakkal of Prabhudas Lilladher.
Sumeet Bagadia's Selections:
DCB Bank Ltd: Buy at ₹186, with a stop-loss at ₹179 and a target price of ₹200. Bagadia highlighted the stock's strong bullish breakout from a consolidation zone.
Zota Healthcare Ltd: Buy at ₹1,685, with a stop-loss at ₹1,630 and a target price of ₹1,820. The stock is showing a well-defined uptrend with a confirmed bullish continuation pattern.
Ganesh Dongre's Recommendations:
HCL Technologies Ltd: Buy at ₹1,608, with a stop-loss at ₹1,590 and a target of ₹1,645. The stock exhibits a strong bullish pattern with solid support.
KFin Technologies Ltd: Buy at ₹1,063, with a stop-loss at ₹1,035 and a target of ₹1,115. Dongre sees a promising opportunity for short-term traders.
NTPC Ltd: Buy at ₹328, with a stop-loss at ₹320 and a target of ₹345. This stock is also showing a notable bullish pattern.
Shiju Koothupalakkal's Intraday Picks:
Gufic Biosciences Ltd: Buy at ₹352.45, with a stop-loss at ₹344 and a target of ₹370. The stock has shown a decent pullback and moved past a key moving average.
Hindustan Oil Exploration Company Ltd: Buy at ₹144.15, with a stop-loss at ₹141 and a target of ₹152. A strong bullish candle formation suggests a potential rise.
Narayana Hrudayalaya Ltd: Buy at ₹2,043, with a stop-loss at ₹2,000 and a target of ₹2,130. The stock shows a positive price action with a visible flag pattern.
Disclaimer: The views and recommendations above are those of individual analysts and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
