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The Indian stock market, represented by the benchmark Nifty-50 Index, saw a week of consolidation, ending 0.2% lower than the previous week. The Industrials, Healthcare, and Auto sectors emerged as top performers, while Metal and FMCG lagged behind. The Bank Nifty closed the week at 51,172.30, slightly lower than the previous week.
Ajit Mishra, SVP of Research at Religare Broking Ltd., anticipates a negative bias for Nifty on Monday unless it decisively breaks above its 20-day exponential moving average (DEMA) at 25,300. He identifies immediate support at 24,700 and a major support level at 24,400, coinciding with the 100-day exponential moving average.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, pinpoints key levels for the Nifty Bank index. She sees near-term support at around 50,000 and emphasizes the need for a decisive breach above the 51,800 level to establish strong conviction in a positive trend.
Global markets, particularly in the US, remain firm despite mixed cues, fueled by optimism in the face of ongoing geopolitical tensions. Analysts believe that metal stocks might benefit from anticipated stimulus policies from China. While global optimism has not yet fully permeated the Indian markets, corporate results for Q2 2024, particularly from companies like Reliance, HDFC Life, Axis Bank, Wipro, and LTIMindtree, are expected to exert considerable influence.
Following a sharp decline last week, Nifty consolidated during the week ending October 11th. This sideways trading occurred amid sustained selling by foreign institutional investors (FIIs) and a lack of significant market-moving catalysts. Siddhartha Khemka, Head of Research at Wealth Management Motilal Oswal Financial Services Ltd., forecasts further consolidation at higher zones, with future direction likely influenced by global factors and the upcoming results season.
Two stock picks are recommended by Sumeet Bagadia, Executive Director at Choice Broking. He suggests buying CG Power and Industrial Solutions Ltd at ₹858.15 with a stop-loss at ₹828 and a target price of ₹915. He also recommends buying Mankind Pharma Ltd at ₹2792.55 with a stop-loss at ₹2690 and a target price of ₹2950.
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, offers three stock ideas for Monday. He recommends buying GAIL India Ltd at ₹230 with a stop-loss at ₹223 and a target price of ₹242. He also recommends buying Piramal Enterprises Ltd at ₹1080 with a stop-loss at ₹1050 and a target price of ₹1140. Finally, he suggests buying Marico Ltd at ₹685 with a stop-loss at ₹674 and a target price of ₹710.
It is important to remember that the recommendations provided in this article are from individual analysts and broking companies, not from Mint. Always consult with certified financial experts before making any investment decisions.