Indian equity benchmarks began Thursday's trading session on a subdued note, caught in a tussle between bullish and bearish forces. While domestic fundamentals offered some cushion, external headwinds kept investor sentiment in check, leading to a virtually flat opening.
Market Opening: A Tepid Start
The Nifty 50 index opened almost unchanged at 25,981.85, marking a marginal dip of 4.15 points or 0.02%. The BSE Sensex mirrored this trend, starting the day flat at 84,987.56, down by 119.25 points or 0.14%. This cautious start reflects a market undergoing a corrective phase, with all eyes now on the upcoming Reserve Bank of India (RBI) monetary policy announcement for fresh directional cues.
Analyst View: Correction Presents Opportunity
Osho Krishan, Senior Analyst for Technical & Derivatives at Angel One, noted that Indian markets witnessed continued profit-booking, with the Nifty 50 declining towards its 20-Day Exponential Moving Average (20-DEMA). The session was characterized by notable weakness in broader indices, though a late-hour buying resurgence provided some relief. The index eventually closed with a minor loss of 0.18%, just below the 26,000 mark.
Krishan pointed out that this decline marks the fourth consecutive session of losses, bringing the benchmark to the edge of the 20-day EMA, which acted as a support. He stated that while the overall market structure remains positive, traders should be prepared for near-term profit-taking. From a technical perspective, the zone of 25,900-25,850 is a crucial support level, coinciding with last week's bullish candlestick low. On the higher side, 26,100-26,150 is seen as an immediate resistance, followed by a stronger hurdle in the 26,250-26,300 range.
"The current corrective phase presents a healthy market structure and offers an opportunity for traders," Krishan observed. He advised market participants to stay alert to macro and global developments and focus on thematic movers to navigate the ongoing volatility effectively.
Stocks to Watch: Angel One's Recommendations for Thursday
Osho Krishan of Angel One recommended two stocks for consideration on Thursday:
Wipro Ltd
The analyst highlighted that Wipro's share price has shown consistent buying interest over recent weeks, successfully moving above all its key Exponential Moving Averages, including the significant 200-DSMA. This breakout indicates inherent strength. The stock appears to be exiting a consolidation phase after breaking out of a downward-sloping channel, with technical indicators firmly supporting a bullish structure.
Recommendation: BUY around ₹250. Maintain a Stop Loss at ₹240 for a Target of ₹264-270.
Tata Motors Passenger Vehicles Ltd (TMPV)
TMPV has seen a sharp correction from its consolidation base towards historical lows. The stock is currently in oversold territory and has recently shown a positive crossover on the 14-day Relative Strength Index (RSI), hinting at a potential trend reversal. Given its current levels, the stock presents a favorable risk-reward scenario for a possible upward move.
Recommendation: BUY around ₹355. Maintain a Stop Loss at ₹345 for a Target of ₹375-380.
Disclaimer: The views and recommendations presented are those of individual analysts and broking firms, not of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions.
