“Stock Market Today: Nifty, Sensex Close Flat Amid Mixed Sector Performance, Key Stock Picks for Traders2024
Stock Market Update: Nifty and Sensex Close Flat Amid Mixed Sectoral Performance
Domestic equity benchmarks, the Nifty 50 and Sensex, ended flat in the previous session, reflecting a mixed bag of stock performances. Gains in shares of select heavyweights, such as Infosys, ICICI Bank, and State Bank of India (SBI), were offset by declines in stocks like Reliance Industries Ltd (RIL), Bharti Airtel, and Larsen and Toubro (L&T). After a positive run in the last three weeks, the Nifty 50 has been trading within a narrow range of less than 170 points since Friday.
The Nifty 50 ended lower for the third consecutive day, shedding 8.95 points or 0.04 percent, closing at 24,610.05. In intraday trade, the index slid 108.35 points, or 0.44 percent, to hit a low of 24,510.65. Meanwhile, the 30-share BSE Sensex managed to gain 1.59 points, closing at 81,510.05. Out of the 30 Sensex stocks, 16 closed higher, while 14 ended lower, indicating a divided market sentiment. The broader market outperformed the benchmarks, with the BSE Midcap index rising by 0.30 percent and the Smallcap index climbing by 0.33 percent.
Sectoral Performance: IT and Banking Shine, Reliance and Bharti Airtel Struggle
The BSE IT index made significant strides, reaching a record high of 45,154.10, buoyed by expectations of an improvement in US IT spending. This surge in the IT sector helped counterbalance losses in other sectors. Reliance Industries, the second-heaviest stock in the Nifty 50 index, faced downward pressure after foreign brokerage J.P. Morgan flagged near-term risks to the company’s earnings growth for the fiscal year 2025.
Despite gains in select sectors, overall market performance remained cautious, with stock-specific volatility. The decline in Reliance Industries and Bharti Airtel added to the bearish sentiment in the market. Additionally, the drop in L&T shares also weighed on the broader index, as the construction and infrastructure giant is a key player in the Nifty 50.
Technical Outlook for Nifty 50
The Nifty 50 index formed a small red candle on its daily chart, suggesting a minor pullback after the recent upward momentum. However, the index continues to hold above the breakout point of the inverted head and shoulder pattern, which signals strength and a potential continuation of the upward trend. On the downside, support is seen at the 100-Day Exponential Moving Average (100-DEMA) level, which stands near 24,340.
According to Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd, as long as the Nifty sustains above this support level, traders are advised to adopt a “buy-on-dips” strategy. In the short term, the index could test levels between 24,800 and 25,000, should it maintain its upward momentum.
Bank Nifty: Potential for Continued Upside
The Bank Nifty index formed a green candle on its daily chart, indicating strength. However, the index faces resistance in the short term around the 53,900-54,000 levels. If the Bank Nifty manages to sustain above the 54,000 mark, it could see further upward movement towards the 54,500 level.
On the downside, major support is located at 52,500, which is the recent breakout point. As long as the index holds above this level, traders are advised to adopt a “buy-on-dips” strategy in Bank Nifty, Yedve suggests. The banking sector has been a key contributor to market performance in recent months, and continued strength in the sector could provide a buffer to the overall market sentiment.
Global Markets: Awaiting Key Inflation Data
D-Street experts are closely monitoring the upcoming inflation data from both the US and India, which are crucial for insights into future interest rate cuts. India’s Consumer Price Index (CPI)-based inflation will serve as a key indicator of underlying earnings growth. Inflation has been a significant concern globally, and lower inflation could pave the way for rate cuts by central banks.
The US CPI data, which is set to be released soon, will provide clues about the US Federal Reserve’s next move during its meeting next week. Wall Street investors are hoping for a third interest rate cut this year as the US economy shows signs of slowing down. The Fed’s decision to ease interest rates could support the economy further, but it may also fuel inflation, creating a delicate balancing act for the central bank.
Stocks to Watch: Buy Recommendations for Today
In terms of stock picks, Sumeet Bagadia, Executive Director at Choice Broking, has recommended two stocks, while Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, has suggested three potential buys.
- Bank of Baroda
Buy at ₹264, Target Price ₹275, Stoploss ₹258
Bank of Baroda has substantial support at ₹258, and recent price-action reversal at ₹264 signals potential for an upward rally. Traders could buy at ₹264, with a target of ₹275 and a stop loss at ₹258. - Godrej Consumer Products
Buy at ₹1,135, Target Price ₹1,375, Stoploss ₹1,100
A bullish reversal pattern has emerged, and Godrej Consumer Products could see a rise towards ₹1,375. Traders are advised to buy at ₹1,135, with a stop loss at ₹1,100 and a target price of ₹1,375. - Marico Ltd
Buy at ₹615, Target Price ₹634, Stoploss ₹605
Marico Ltd has shown a breakout at ₹615, indicating strong bullish momentum. Traders can buy at ₹615 with a target of ₹634 and a stop loss at ₹605.
Conclusion
The Indian stock market showed mixed performances with a flat close in major indices as gains in select heavyweights were offset by losses in others. With the global focus on inflation data, traders are advised to remain cautious and follow a “buy-on-dips” strategy, especially in sectors such as banking and IT. The stock picks for today indicate promising opportunities, particularly in Bank of Baroda, Godrej Consumer Products, and Marico Ltd, with specific entry points and targets to guide traders in a volatile market environment.
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