Market Opens in the Red Amid Profit Booking
India's key stock market indices, the Sensex and Nifty, began Friday's trading session on a lower note. Investors chose to book profits following a recent sustained rally, leading to a subdued opening. The information technology sector was a particular area of weakness, with shares falling as market participants adjusted their expectations for an imminent interest rate cut in the United States.
Election Volatility and Key Levels to Watch
Financial experts have warned that the trading session could see heightened volatility. This is primarily because the results for the Bihar state elections are starting to be declared. Initial reports suggest that the ruling National Democratic Alliance (NDA), which includes Prime Minister Narendra Modi's party, is currently in a leading position. As of 9:20 IST, the specific numbers reflected the cautious mood: the Nifty 50 was down 0.34% at 25,790.55, and the BSE Sensex had fallen 0.30% to 84,211.55.
Rajesh Palviya, SVP of Technical and Derivatives Research at Axis Securities, provided his technical outlook on the Nifty 50. He stated that the index maintains a strong uptrend on both daily and weekly charts, consistently forming higher tops and bottoms. The index is trading comfortably above its key moving averages, which reinforces a positive bias. A decisive breakout above the 26,000-26,100 resistance zone could propel the index towards 26,300-26,500 levels. However, he cautioned that a fall below 25,700 might trigger a round of profit booking, pulling the index down to 25,500-25,400.
Expert Stock Recommendations for Investors
Along with the market outlook, analysts have identified specific stocks that show promising technical strength. Here are three picks highlighted by experts:
Berger Paints India Ltd (CMP: ₹581)
The stock has decisively broken out of a three-month consolidation range between ₹510 and ₹560, signaling a bullish trend. This breakout was supported by high trading volumes, indicating strong investor participation. The stock is positioned above all its major moving averages, and technical indicators like the Bollinger Bands and RSI are flashing buy signals. Investors can consider buying and accumulating this stock with an upside target of ₹600-625. Downside support is seen at ₹565-560.
Thyrocare Technologies Ltd (CMP: ₹1,490)
Thyrocare shares have scaled a new all-time high, confirming a bullish sentiment. The stock has also closed above a key multiple resistance zone at ₹1,456, backed by significant volume. Trading above all its important moving averages with positive momentum indicators, the stock presents a buying opportunity. The expected upside is in the range of ₹1,585-1,675, while support lies at ₹1,440-1,390.
Ashok Leyland Ltd (CMP: ₹150)
Ashok Leyland is in a powerful uptrend, forming a pattern of higher highs and higher lows. It has successfully closed above a crucial resistance level of ₹145, with the breakout confirmed by high volume. Positive signals from momentum oscillators across timeframes suggest continued strength. Investors can look at this stock for a potential rise to ₹155-166, with a support zone at ₹145-142.
