Stock Market Update: Markets Gain Momentum Amid Volatility, Nifty and Sensex End Higher on Tuesday
Markets saw a brief respite from recent volatility on Tuesday, with the benchmark Nifty 50 and S&P BSE Sensex closing higher by 0.28% and 0.31%, respectively, at 23,518.50. The Bank Nifty also ended up 0.52% at 50,626.50. Key sectoral winners included realty, auto, consumer durables, and pharma, while metal and energy sectors closed in the red. The broader indices performed well, gaining nearly half a percent each.
However, the Indian stock market faced a late-afternoon correction driven by fears of escalating hostilities in the Russia-Ukraine war, which could potentially spill over into Europe. The conflict took a new turn with Ukrainian forces launching their first strike on Russian territory using the ATACMS missile. Additionally, Russian President Vladimir Putin recently signed a revised nuclear doctrine, warning that a conventional attack on Russia, supported by a nuclear power, would be treated as a joint attack on Russia.
Trade Setup for Thursday:
Technically, the Nifty 50 is showing signs of weakness, with the formation of a pattern that suggests a lack of strength to sustain a significant bounce. According to Deepak Jasani, Head of Retail Research at HDFC Securities, the Nifty may form a higher low before embarking on a more sustainable upward movement. The near-term range for the index is expected to be between 23,350 and 23,815.
Meanwhile, the Nifty Bank index has closed above the key resistance level of 50,600, and staying above this level could indicate further strength for the sector. However, support lies near the 200-day exponential moving average (DEMA) at 49,920, according to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.
Russia-Ukraine War Impact:
Asian markets were mixed on Tuesday, with European markets remaining weak. The Dollar Index failed to break past the 107 level, while crude oil softened, which provided some relief to the Indian Rupee. Despite slowing, Foreign Institutional Investors (FIIs) remained net sellers in November, adding pressure to the market. Additionally, the ongoing State Assembly elections in Maharashtra and Jharkhand will likely influence market sentiment until the final results are announced on November 23rd. According to Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, the renewed Russia-Ukraine tensions and ongoing state elections are likely to keep markets volatile in the near term.
Stocks to Buy Today:
Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, have shared their stock picks for today:
Sumeet Bagadia’s Picks:
- CarTrade Tech Ltd
- Buy Price: ₹1306.35
- Stop Loss: ₹1260
- Target Price: ₹1385
- Rationale: CarTrade is showing strong bullish momentum, breaking past resistance levels with healthy trading volumes. The stock’s positive outlook suggests further upside potential.
- T D Power Systems Ltd
- Buy Price: ₹440.7
- Stop Loss: ₹425
- Target Price: ₹470
- Rationale: T D Power is recovering after a period of sideways movement and is approaching key resistance. A breakout above ₹450 could lead to further gains.
Ganesh Dongre’s Picks:
- National Aluminium Co. Ltd (NALCO)
- Buy Price: ₹240
- Stop Loss: ₹234
- Target Price: ₹248
- Rationale: NALCO is showing a bullish reversal pattern and maintaining support at ₹234, suggesting potential for a price rise toward ₹248.
- ICICI Bank Ltd
- Buy Price: ₹1248
- Stop Loss: ₹1230
- Target Price: ₹1275
- Rationale: ICICI Bank has formed a bullish reversal pattern, and with support at ₹1230, the stock could rise towards ₹1275.
- Container Corporation of India Ltd (CONCOR)
- Buy Price: ₹786
- Stop Loss: ₹775
- Target Price: ₹815
- Rationale: CONCOR is showing a bullish reversal pattern and has strong support at ₹775, indicating potential for further upside.
Conclusion:
The market is expected to remain volatile in the near term, with geopolitical tensions and state elections influencing investor sentiment. While there is potential for short-term gains in select stocks, traders should keep an eye on global developments, especially the ongoing Russia-Ukraine war, as it could have broader implications for the market. The recommended stocks present opportunities for investors looking to capitalize on these trends.
