Indian stock markets concluded a turbulent week on a cautious note, with benchmark indices closing almost flat on Friday. Investors adopted a wait-and-see approach ahead of significant macroeconomic data releases scheduled after market hours.
Market Performance and Volatility
The 30-share BSE Sensex experienced a minor decline of 13.71 points, or 0.02%, settling at 85,706.67. This followed two consecutive days of gains. Throughout the trading session, the index demonstrated considerable volatility, swinging within a range of 392.07 points. It touched an intraday high of 85,969.89 and a low of 85,577.82.
The broader Nifty 50 index mirrored this trend, dipping by 12.60 points, or 0.05%, to close at 26,202.95. This subdued closing occurred despite both indices having surged to record levels during intraday trading on Thursday, with profit-booking in the latter part of that session preventing a strong finish.
Key Events Driving Investor Caution
Market experts point to a packed economic calendar as the primary reason for the prevailing caution. Ajit Mishra, SVP of Research at Religare Broking Ltd, highlighted several upcoming triggers that could influence market volatility.
The domestic focus will first be on monthly auto sales figures, quickly followed by the release of HSBC's Manufacturing, Services, and Composite PMI data. However, the most significant event, according to Mishra, will be the Reserve Bank of India's (RBI) monetary policy meeting on December 5. Analysts will scrutinize the central bank's commentary on inflation, growth projections, and any hints regarding potential interest rate cuts.
Globally, US macroeconomic data remains a critical factor shaping risk appetite, as markets continuously adjust their expectations for the Federal Reserve's upcoming policy decision and its implications for foreign investment flows into emerging markets like India.
Technical Analysis and Trade Setup
Vatsal Bhuva, a Technical Analyst at LKP Securities, provided insights into the market's technical structure. He noted that the Nifty 50 formed a small candlestick on its weekly chart, indicating uncertainty at elevated levels. On the hourly charts, the Relative Strength Index (RSI) has shown a bearish crossover, accompanied by the formation of lower peaks, suggesting a potential pause in the bullish momentum.
"Nevertheless, support levels are evident at 26,100 and 26,000, with resistance positioned at 26,300," said Bhuva. His analysis suggests the index could continue to oscillate within a range. A decisive close above the 26,300 mark is seen as a crucial trigger that could pave the way for the index to target 26,600 levels.
Stocks to Buy: Expert Recommendations
Despite the flat market close, analysts have identified several buying opportunities for Monday's trading session. Market experts, including Sumeet Bagadia of Choice Broking, Ganesh Dongre of Anand Rathi, and Shiju Koothupalakkal of Prabhudas Lilladher, recommended eight stocks for intraday trades.
Sumeet Bagadia's Picks:
Laurus Labs Ltd: Buy at ₹1,031, with a stop-loss at ₹995 and a target of ₹1,103. Bagadia notes the stock is maintaining a strong upward trajectory with consistent higher highs and higher lows.
Mahindra & Mahindra Financial Services Ltd: Buy at ₹372, with a stop-loss at ₹359 and a target of ₹398. The stock recently reached its all-time high and shows sustained bullish momentum.
Ganesh Dongre's Selections:
Piramal Pharma Ltd: Buy at ₹188, with a stop-loss at ₹184 and a target of ₹200. A bullish reversal pattern suggests potential for a price retracement towards the target.
RBL Bank Ltd: Buy at ₹313, with a stop-loss at ₹308 and a target of ₹325. The stock shows a reversal price action formation at the current level.
Astral Ltd: Buy at ₹1,445, with a stop-loss at ₹1,430 and a target of ₹1,500. A bullish reversal pattern indicates a potential rebound.
Shiju Koothupalakkal's Intraday Choices:
HBL Engineering Ltd: Buy at ₹885, with a stop-loss of ₹865 and a target of ₹950. The stock shows signs of a fresh spurt with improved bias.
Poonawalla Fincorp Ltd: Buy at ₹480, with a stop-loss of ₹468 and a target of ₹515. The stock indicates a rising trend with a decent pullback.
Indo Count Industries Ltd: Buy at ₹324.35, with a stop-loss of ₹316 and a target of ₹342. A flag pattern on the daily chart suggests a potential breakout.
Disclaimer: The views and recommendations above are from individual analysts or broking companies and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
