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Stock Market News: Domestic equity benchmarks Sensex and Nifty 50 lost direction during Monday’s trading session amid mixed global signals. Gains narrowed after the benchmark Nifty 50 index hit a fresh high at the opening, dragged down by a slide in metals on valuation concerns.
On Monday, BSE Sensex opened up 96.94 points or 0.13% at 73,903.09, while the Nifty 50 opened at 22,403.50, up 25.10 points or 0.11%.
Sensex and Nifty 50 ended Saturday’s special trading session on a bullish note. During Saturday’s special live trading session, domestic benchmark indices reflected favorable signals from Wall Street overnight as the Nifty 50 hit a new all-time high of 22,419.55. The Sensex hit an all-time closing high of 73,860.26 after rising 114.91 points, or 0.16%.
The 30-share BSE Sensex ended flat at 60.80 points at 73,806.15, while the Nifty 50 closed at 22,378.40, up 39.65 points or 0.18%.
Also Read: Stock Market Today: Sensex ends flat, Nifty 50 closes at 39.65 points in second part of special trading session
Net-net, the Nifty 50 was able to close this extended trading week at 22378 level, up 0.74%. India’s GDP growth of a solid 8.4%, the Fed’s favored PCE inflation measure matching consensus expectations, and global stock markets, particularly Japan’s Nikkei and Wall Street, which recorded their new all-time highs were the main positive catalysts that continued to work in the background. , according to analysts.
Also Read: Over 40 smallcap stocks gain 10-40% as Sensex posts third consecutive weekly gain; RailTel among the winners
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Among the sectoral indices on Saturday, the Nifty Media index gained 1.75%, making it the top sector among sectoral indices, while the Nifty Metal index continued to shine even brighter, rising 1.58% .
NSE and BSE on Saturday held a special live trading session to assess the resilience of their disaster recovery systems. The special negotiation session is part of the Business Continuity Plan (BCP) and Disaster Recovery Site (DRS) management system framework.
Also Read: Indian Stock Market Special Live Trading Session Today: Check Timing, Purpose & Other Important Details
Market outlook
In line with our expectations, the Nifty 50 managed to maintain the 21,800 mark despite high volatility and recorded a new all-time high of 22,353 as strong GDP numbers boosted market sentiment. The index has reversed the decline of the last five sessions in a single session, highlighting a faster pullback making us reiterate our positive stance and expect Nifty 50 to head towards 22,700 in the coming week. In the process, we expect large caps to relatively outperform the broader market as the ratio between Nifty 50 and Nifty 500 has bottomed around 1 level. Meanwhile, 21,800 would act as immediate support in the truncated week ahead, said Dharmesh Shah, vice president at ICICI Securities.
Also Read: Week Ahead: Macroeconomic data, FII activity and global cues among key market triggers as Nifty 50 eyes 22,600 this week
Empirically, in the year of general elections, Nifty 50 has a tendency to bottom out in February-March, followed by a minimum rally of 14% (from bottom to top) in the general election result in each of the seven cases during the last three decades. Therefore, we expect Nifty 50 to maintain the same pace and approach 23,400 by June 2024. Therefore, bouts of volatility before the general elections should be capitalized as buying opportunities from a medium-term perspective, Shah explained. .
Mirroring the index movement, Bank Nifty (which has 33% on Nifty 50) has witnessed a faster pace of retracement as it retraced six sessions of decline in a single session, highlighting a strong price structure. “We expect Bank Nifty to sustain its upward momentum and gradually head towards an all-time high of 48,600, while strong support lies at 46,200,” Dharmesh said.
Also Read: Dividend Stocks: Marico, Sanofi India, Among Others To Trade Ex-Dividend Next Week; consult complete list
Dharmesh Shah Stock Recommendations
On stocks to buy on Monday, Dharmesh Shah recommended two stocks:
Buy Bank of Baroda in variety of $266-273 for the purpose of $305 with a stop loss of $252.
Buy Ambuja Cements Ltd in the range of $605–618 for the purpose of $658 with a stop loss of $581.
Also Read: Stock Market Today: Sensex Ends Over 1,000 Points Higher, Nifty 50 Soars Above 22,300 Marks Led by Metals, Banks Stocks
Disclaimer: The research analyst or his/her family members or I-Sec do not have beneficial/beneficial ownership of 1% or more of the securities of the subject company, as of the end of 02/03/2024 (previous date) or do not have no other financial interest and have no material conflict of interest.
The opinions and recommendations above are those of individual analysts, experts and brokerage firms, not those of Mint. We advise investors to consult certified experts before making any investment decisions.
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