Market Slips on Global Weakness and Election Jitters
India's key equity benchmarks, the Sensex and Nifty 50, opened in the red on Friday, pressured by a weak performance in global markets and investor anxiety surrounding the outcome of the Bihar assembly elections. The persistent outflow of foreign funds further dampened the overall market sentiment, leading to a cautious trading session.
As of 13:52 IST, the Sensex had declined by 412.33 points, or 0.49%, to trade at 84,066.34. Mirroring this trend, the Nifty 50 index dropped by 134.60 points, or 0.51%, to reach 25,749.05.
Expert Views and Technical Analysis
Market experts believe that the primary focus for traders today is the verdict of the Bihar elections. However, they suggest that any market reaction to the poll results is likely to be temporary. The medium to long-term trajectory of the market will be dictated by fundamental factors, particularly corporate earnings growth, where optimism is fueled by expectations of robust GDP expansion.
Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities, provided a detailed technical perspective. He noted that the Nifty 50 is moving in a rangebound-to-weak zone as profit booking emerges at higher levels. On the charts, the index is finding support around 25,850, while 25,940 continues to act as a strong resistance. The price action indicates hesitation, and unless the Nifty breaks decisively above 25,940, it may continue to consolidate with a negative bias.
The Bank Nifty also displayed weakness, struggling near the resistance zone of 58,500–58,600. The index is holding support at 58,300 and 58,100, but intraday charts show fatigue in major banking stocks. Tapse advises a cautious approach unless the Bank Nifty closes above 58,600 with conviction.
Short-Term Stock Picks from an Expert
For investors looking for short-term opportunities, Prashanth Tapse recommends three stocks:
Polycab (Buy): With a current market price of ₹7,706, the stock is showing strong technical momentum. It is trading well above key moving averages, and a break above ₹7,800 could push it towards ₹7,950–8,200. Strong support is placed at ₹7,500.
Hindustan Zinc (Buy): Priced at ₹495, the stock is in a firm uptrend. Holding above the key support of ₹480, a sustained move above ₹495 could target levels of ₹515–530.
IndiGo (Buy): At ₹5,905, the airline stock exhibits strong technical strength. A move above ₹5,950 could trigger a rally towards ₹6,050–6,200, with solid support at ₹5,750.
Disclaimer: The views and recommendations above are those of individual analysts and broking companies, not of Mint. Investors are advised to consult certified experts before making any investment decisions.
