Market Opens in Green on Political Stability Hopes
Indian stock markets commenced trading on a strongly positive note today, registering gains of over half a percent. This optimistic opening was primarily fueled by exit polls from the Bihar elections, which indicated a clear majority for the ruling National Democratic Alliance (NDA). The prospect of continued political stability at the national level significantly bolstered investor confidence.
The benchmark Nifty 50 index opened at 25,834.30, marking a substantial jump of 139.35 points or 0.54%. Similarly, the BSE Sensex began the day at 84,238.86, climbing by 367.54 points or 0.44%.
Analysts Weigh In on Market Trajectory and Stock Picks
Market experts believe the sentiment has received a double boost. Alongside the reassuring exit polls, reports of a forthcoming trade agreement between India and the United States have also contributed to the positive atmosphere. This combination is expected to empower bullish sentiment in the near term.
However, analysts caution that while these factors are positive, they might not be enough on their own to trigger a decisive market breakout and a sustained, long-term rally. The market's momentum will need further catalysts to maintain its upward trajectory.
Nifty 50 and Bank Nifty Outlook
Sagar Doshi, Senior Vice President- Research at Nuvama Professional Clients Group, provided his technical perspective on the indices. He noted that after a recent 750-point cool-off, the Nifty 50 showed its first signs of a short-term reversal at the start of the week. Initial upside targets at 25,700 have been met, with follow-up targets remaining open at 25,840 and 26,020. He suggested that dips towards 25,550 are now likely to attract buying interest.
For Bank Nifty, closing above the 58,000 mark has negated the possibility of a fresh swing low, confirming a 'buy on dip' setup. The confirmed close above this level opens targets at 58,600 and 59,280.
Stocks to Watch
Analysts have also recommended specific stocks based on current technical patterns:
Union Bank of India (BUY): With a Last Traded Price (LCP) of ₹152, a stop loss at ₹147, and a target of ₹161. The recommendation is based on a cup and handle breakout on a 1.5-year chart and an inverted head and shoulder pattern on a 10-year chart.
Minda Corporation Ltd (BUY): LCP of ₹597, stop loss at ₹580, and target of ₹645. The stock is on the verge of a cup and handle breakout on weekly charts after consolidating for 15 months.
Bajaj Auto Ltd (BUY): LCP of ₹8,895, stop loss at ₹8,600, and target of ₹9,440. A short-term flag breakout on daily charts suggests the stock is breaking out from an 8-week consolidation phase.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
