Market Recovers to Close in Green Amid Global Volatility
The Indian stock market staged a remarkable recovery on Friday, concluding the trading session with modest gains after beginning the day on a negative note. Initial sentiment was dampened by a widespread downturn in global markets and a significant selloff in US technology stocks. However, domestic optimism, fueled by favorable expectations from the Bihar state elections, helped the indices reverse their losses and finish in positive territory.
Key Indices and Expert Outlook
The benchmark Nifty 50 index wrapped up the day at 25,915.15, registering a gain of 36 points, or 0.14%. The Sensex followed suit, closing at 84,630.96 after adding 152.29 points, or 0.18%.
Market analysts believe that the immediate direction for the markets will be shaped by a confluence of factors. These include the Reserve Bank of India's (RBI) ongoing efforts to stabilize the Indian Rupee, the fluctuating activity of foreign institutional investors (FIIs), the final outcomes of the Bihar elections, broader global market trends, currency movements, and the release of key domestic economic indicators.
Bullish Forecast from ICICI Securities
Dharmesh Shah, Vice President at ICICI Securities, presented a highly optimistic outlook. He stated that the equity benchmark has resumed its uptrend after a two-week consolidation period, settling the eventful week 1.6% higher. He pointed out that the Midcap index continued its winning streak, hitting a fresh all-time high.
Shah believes that the past three weeks of consolidation have created a launchpad for the Nifty 50 to challenge its all-time high of 26,300 in the coming month. He attributes this positive momentum to softer inflation readings and better-than-expected Q2 corporate earnings. He suggests that any market decline should be viewed as a buying opportunity, with a strong support level placed at 25,300.
Stocks to Watch This Week
Dharmesh Shah of ICICI Securities has recommended two stocks for near-term investment:
- Bharat Electronics Ltd (BEL): Buy in the range of ₹414-426. The price target is ₹466 with a stop loss of ₹398.
- KPR Mill Ltd: Buy in the range of ₹1,060-1,080. The price target is ₹1,244 with a stop loss of ₹1,108.
Investors are strongly advised to consult with certified financial experts before making any investment decisions, as market conditions are subject to rapid change.
