Stock Market today: The domestic benchmark indices, Nifty 50 and Sensex, opened slightly higher on Thursday, following global market patterns, as investors found reassurance in the softer-than-anticipated inflation figures from the US and India. In early trading, Sensex rose by 40.56 points to reach 74,070.32, while Nifty 50 increased by 5.80 points to hit 22,476.30.
The uptick in IT shares today follows a moderate rise in US consumer prices in February, though it is viewed as a temporary reprieve since the data did not fully reflect the effects of tariffs imposed by US President Donald Trump.
According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market will navigate through domestic supportive factors and global challenges today. The domestic economic indicators are very encouraging. The unexpected drop in CPI inflation to 3.75% in February has lowered inflation beneath the RBI’s target of 4%. Additionally, the spike in the IIP in January to an eight-month peak of 5.01% creates a favorable growth-inflation balance. This situation establishes an ideal macroeconomic environment for a rate cut by the MPC in April.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The benchmark index wrapped up its trading day with a muted performance for the fourth consecutive session, reflecting a remarkable resilience against the backdrop of global uncertainty. This ongoing stability suggests that the market is holding firm despite external pressures and could pave the way for future opportunities as conditions evolve.
On the technical front, the view remains similar to what we have been quoting from the past few trading sessions. On the higher end, the 20 DEMA, coinciding with the bearish gap around 22,650-22,700, remains a daunting task, and until Nifty 50 breaches the same in a decisive manner, the trend remains unclear. On the other hand, the support zone around 22,350-22,300 has proven to be resilient over the last couple of sessions, effectively cushioning any potential dips, and is expected to uphold this support during the upcoming weekly settlement session. However, it is essential to proceed with caution; any failure to hold above this area could lead to a wave of selling pressure in the near future.
Moving forward, until a clear range breakout occurs, one should avoid aggressive positioning on either side of the index. Concurrently, a stock-centric approach with proper risk management can be considered until the uncertainty diminishes.
Stocks To Buy on Thursday – Osho Krishan
On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks – HDFC Life Insurance, and Tata Motors.
HDFC Life Insurance
HDFC Life Insurance has been navigating a phase of consolidation over the past few trading weeks, characterized by limited price movement as the market seeks balance. Recently, however, the stock has shown a notable increase in buying activity, signaling a potential shift in sentiment. The counter has surged above the 50 DEMA after a long haul supported by the 14-day RSI signal, demonstrating an encouraging pattern of forming higher highs and higher lows. This positive divergence suggests increasing strength in the buying pressure, further solidifying a bullish outlook in the near term.
Hence, we recommend to BUY HDFC Life Insurance around 630-620 keeping a stop loss of 590 for a potential Target of 700.
Tata Motors
Tata Motors has recently transitioned out of a consolidation phase. This shift is highlighted by its rise above the 21-day exponential moving average (DEMA) after a long period, signaling a departure from a period of low volatility. Moreover, the stock has seen traction from extreme oversold parameters and is placed in a lucrative zone from a risk-reward point of view. Given these factors, the stock is anticipated to continue its upward trajectory in the upcoming weeks.
Hence, we recommend to BUY Tata Motors around 660 keeping a stop loss of 620 for a potential Target of 720.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
