The Indian stock market extended its losses for the fourth consecutive session, influenced by weak global market sentiments. The rising crude oil prices, spurred by increasing tensions in the Middle East, have played a significant role in this downturn.
The Nifty 50 index saw a decline of 183 points, closing at 22,704. Similarly, the BSE Sensex dropped 667 points to end at 74,502, and the Bank Nifty index fell by 640 points, concluding the day at 48,501.
Trading volumes on the NSE remained stable at ₹1.03 lakh crore, although the broad market indices showed a smaller decline compared to the Nifty, with an improved advance-decline ratio of 0.74:1.
Expert Analysis by Vaishali Parekh
Nifty 50 Index Insights
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, highlighted a critical shift in the Nifty 50 index.
She noted that the index has broken through the crucial support level of 22,800, with the next support now set at 22,500.
According to Parekh, the market sentiment has weakened, and a trend reversal is contingent on the index closing above the immediate resistance of 22,800.
Today’s Stock Recommendations
Vaishali Parekh provided her recommendations for stocks to watch today, which include NHPC, Dr. Reddy’s Laboratories, and Ambuja Cements.
Market Outlook
Nifty 50 Forecast
Discussing the outlook for the Nifty 50, Parekh remarked, “The Nifty 50 index has been on a losing streak for three consecutive sessions, hovering near the 22,700 mark with a weakening bias.
The next crucial support is at 22,500, which needs to hold. An improvement in bias requires a decisive move above 22,800, potentially leading to a retest of the 23,100 peak.”
Bank Nifty Analysis
Regarding the Bank Nifty index, Parekh observed, “After facing resistance near 49,700, the Bank Nifty has declined with a weakening bias, with significant support at the 50EMA around 48,000.
The index has been on an upward trend with higher lows, but a decisive break below 47,700 could weaken this trend.”
Immediate Support and Resistance Levels
Parekh identified the immediate support for the Nifty at 22,600, with resistance at 22,850. For the Bank Nifty, the expected daily range is between 48,000 and 49,000.
Stock Recommendations by Vaishali Parekh
- NHPC: Buy at ₹101.60, with a target of ₹106 and a stop loss of ₹99.
- Dr. Reddy’s Laboratories: Buy at ₹6000, aiming for a target of ₹6250, with a stop loss of ₹5870.
- Ambuja Cements: Buy at ₹630, targeting ₹664, with a stop loss of ₹616.