Stock market news: Due to a fag-end selloff in consumer durables, private banks, and IT companies, the Indian stock market fell for the third consecutive session on Wednesday, closing at a low of over one month. Before the US Federal Reserve’s decision was made public during the overnight session, investors remained on the sidelines.
According to a PTI report, the BSE Sensex fell 275 points, or 0.32%, after a tumultuous session to settle at 84,391, a level not seen since November 11. The 50-share NSE Nifty ended the month at a low of 25,758, down 82 points, or 0.32%.
Results of the US Fed meeting
The federal funds rate fell to its lowest point in over three years as the US Federal Reserve lowered its benchmark interest rate by 0.25%. The target range was previously between 3.75% and 4%, but it is now between 3.5% and 3.75%.
The rate has been lowered by the Fed three times since September, for a total of 0.75% this year.
From December 9 to December 10, the US Federal Reserve met for two days to discuss monetary policy. Prior to the announcement, the probability of a 25 basis point reduction in the policy rate, which would bring the Federal Funds rate down to between 3.5% and 3.75%, was 87.4%, according to the CME Group’s FedWatch Tool.
IPO market activity
Today’s primary market activity will continue to be robust. The allocation for two IPOs, Wakefit Innovations and Corona Remedies, will be finalized today, December 11, while two IPOs that launched on Wednesday, Nephrocare Health Services and Park Medi World, will begin their second day of bidding.
Market prospects and major factors
According to Vinod Nair, Head of Research at Geojit Investments Limited, rising Japanese bond yields and signs of BOJ monetary tightening are causing global equity markets to remain volatile, which is encouraging risk-averse views in developing economies. The US Fed meeting is now the focus, he said.
Indian markets, burdened by continuous FII withdrawals, INR depreciation, and concern surrounding U.S.-India trade negotiations despite current discussions, echoed global caution. He continued, “Central bank cues and clarity on trade developments will influence market direction in the near future.”
Thursday’s Trade Setup
“Again, bears remained at the helm as the Nifty revisited yesterday’s low, reinforcing a bearish bias,” stated Rupak De, Senior Technical Analyst at LKP Securities. Once more, the index found support close to the 50 EMA. On a daily basis, the RSI has broken out of its current consolidation. Additionally, the index has shown weakness by breaking below the 50% retracement of the prior increase from 25,318 to 26,325.
According to De, the index is expected to be under pressure in the near future with immediate support at 25,700. A clear fall below this level might trigger a decline toward 25,610 and 25,530. “On the upside, resistance is placed at 25,870 and 25,960-26000.”
Stocks to purchase right now
Eight intraday equities were suggested by market analysts. Among the specialists are Shiju Koothupalakkal (Prabhudas Lilladher), Ganesh Dongre (Anand Rathi), and Sumeet Bagadia (Choice Broking).
Eicher Motors, AU Small Finance Bank, ICICI Bank, Infosys, Punjab National Bank, Paradeep Phosphates, Chennai Petro, and Thirumalai Chemicals are the eight intraday stocks that are suggested for today.
Stock recommendations by Sumeet Bagadia
Bagadia suggested purchasing Eicher Motors shares at ₹7228, with a target price of ₹7734 and a stop loss at ₹6975.
According to Bagadia, the car stock is still on a steady upward trend and is currently trading at 6280. A string of higher highs and higher lows has been formed by the stock, showing persistent positive momentum. The current price action points to an attempt to break out from a wide range-bound structure that resembles a repeatedly tested horizontal channel. The stock reaching a new all-time high of 7294, bolstered by steady volume action, further validates this breakout. Strong alignment between short- and long-term trends is indicated by the price action, which is still well above important exponential moving averages. Near its higher levels, there is immediate resistance; a breakout over this level could open the door to a short-term goal of 7734.
The immediate support on the downside is located around 7160. With a current value of 60.24 and a rising trend, the Relative Strength Index (RSI) indicates growing buying interest. A stop-loss close to 6975 is recommended for efficient risk management in order to protect against any future market declines.
AU Small Finance Bank: Bagadia suggests purchasing AU Small Finance Bank at ₹994, with a target price of ₹1062 and a stop loss at ₹960.
As the stock has continuously created higher highs and higher lows, indicating persistent positive momentum, AUBANK is currently trading at 994, sustaining a solid upward trajectory, according to the analyst. It recently hit an all-time high of 1007.25, and its higher levels are surrounded by a crucial resistance level. Increased buying activity could result from a breakout over this level. The bullish view is supported by the upward trend of the Exponential Moving Averages (EMAs) for the 20, 50, 100, and 200-day periods.
Strong positive sentiment and the stock’s ongoing strength are indicated by the price being above all significant EMAs. AUBANK may get more momentum in the direction of a short-term target of 1062 if it is able to close over the resistance level of 1008. In order to confirm a breakout, traders should keep an eye on price movement in the vicinity of this resistance zone, he continued.
Immediate support on the downside is seen at 972. Growing buying momentum is reflected in the Relative Strength Index (RSI), which is currently at 76.49 and moving upward. According to Bagadia, a stop-loss at 960 is advised in order to efficiently manage risk and protect against any unforeseen market reversals.
Purchase Ganesh Dongre’s stock
ICICI Bank: Anand Rathi’s Ganesh Dongre suggested purchasing ICICI Bank stock at ₹1360 with a target price of ₹1398 and a stop loss at ₹1345.
“A significant bullish reversal pattern has surfaced in the stock’s most recent short-term trend study. This technical pattern raises the prospect of a brief decline in the price of the stock, possibly as high as Rs. 1398. The stock is now holding onto a critical support level around Rs. 1345. “A buying opportunity is emerging given the current market price of Rs. 1360,” Dongre stated.
He continued, “This implies that investors might think about buying the stock at its current price, anticipating a rise towards the identified target of Rs. 1398.”
Punjab National Bank: Additionally, Dongre suggested a buy call on Punjab National Bank (PNB) at ₹118, with a target price of ₹125 and a stop loss of ₹114.
According to the expert, this stock has significant support at ₹114. “So, at the current juncture, the stock has again seen a reversal price action formation at the ₹118 price level, which may continue its rally till its next resistance level of ₹125; so traders can buy and hold this stock with a stop loss of ₹114 for the target price of ₹125 in the upcoming weeks,” Dongre stated.
Infosys: The analyst Anand Rathi has a buy call on Infosys at ₹1585, with a target price of ₹1625 and a stop loss at ₹1560.
“The stock has demonstrated a robust, noteworthy, ongoing bullish trend, providing short-term traders with yet another exciting chance. The current price of the stock is ₹1585, with ₹1560 serving as a strong support level. According to Dongre, “the technical setup suggests the possibility of a price retracement towards the ₹ 1625 level.”
Entering at the present market price with a stop-loss at ₹ 1560 is a safe method to collecting the expected gain, he added, since the stock is reversing from a support base and exhibiting signs of renewed vigor.
Stock suggestions from Shiju Koothupalakkal
Paradeep Phosphates:Hiju Koothupalakkal suggested purchasing Paradeep Phosphates at ₹157, with a target price of ₹166 and a stop loss of ₹154.
According to Kuthupalakkal, the stock has generally seen a respectable retreat from the 200 zone and is currently exhibiting signs of improvement in the bias, taking support near the 150 level, and volume participation is steadily increasing, predicting additional gain in the upcoming sessions.
With significant upside potential, the RSI has indicated a buy to continue the upward trend and is well-positioned consolidating close to the oversold zone. We advise purchasing the stock for an upside goal of 166 while maintaining the stop loss at the 154 level because the chart is technically sound and appealing,” he continued.
Chennai Petroleum: Koothupalakkal recommends purchasing Chennai Petro at ₹945.80, with a target price of ₹990 and a stop loss of ₹925.
He stated that the stock has shown a positive candle formation on the daily chart to improve the bias anticipating further gain in the upcoming days, following a period of consolidation at the 920 zone for a considerable amount of time while maintaining above the crucial 50EMA level at the 897 zone.
The RSI is currently in a strong position, indicating a buy with visible upward potential and an increasing bias. Further higher movement is anticipated in the upcoming days. The RSI just corrected effectively from the severely overbought zone. The Prabhudas Lilladher analyst continued, “We recommend purchasing the stock for an upside target of 990, keeping the stop loss of 925 level, since the chart technically looks appealing.”
Thirumalai Chemicals: Koothupalakkal suggested purchasing the chemical stock at ₹229.78, with a target price of ₹247 and a stop loss of ₹225.
In order to improve the bias expected for further rise in the upcoming sessions, the stock, which had experienced a steep correction from the 328 zone, showed signs of taking support near the 209 zone and indicated a significant pullback with a positive candle formation on the daily chart with rising volume participation visible, according to the analyst.
With significant upside potential present, the RSI has shown a bullish trend reversal to advise a purchase from the very oversold zone and can continue the positive advance in the future. We advise purchasing the stock for an upside goal of 247 while maintaining a stop loss of 225 because the chart technically looks strong,” he continued.
