Today’s stock market: As investors assessed the US-China trade deal and escalating Middle East tensions, the domestic benchmark indices, the Nifty 50 and Sensex, began Thursday with minimal movement.
By 9:57 IST, the Sensex had dropped 0.18% to 82,365.17, while the Nifty 50 had fallen 0.13% to 25,106.45. While mid-cap stocks stayed the same, the larger small-cap stocks increased by 0.2%.
To resurrect the shaky trade truce with China, US President Donald Trump declared that a framework pertaining to tariff rates had been devised. Although this news increased investor confidence, the markets remained unsettled due to the lack of specific details.
Geopolitical concerns were heightened when Iran threatened to attack US bases in the Middle East in the event that nuclear talks broke down and war broke out with Washington.
Regarding technological matters, Angel One’s Osho Krishan suggests Gail (India) Ltd. and HCL Technologies Ltd. While booking profits at higher levels, Krishan suggests entering on dips and chasing momentum. Here are his thoughts on the market as a whole.
Osho Krishan, Senior Technical & Derivatives Analyst at Angel One, provides an outlook for the Nifty 50.
The appearance of a third consecutive narrow-range candlestick with a small body on the benchmark index’s daily chart indicates that the current market structure has not changed. The market is currently in overbought territory, as indicated by the smoothed Relative Strength Index (RSI), which is currently trading at about 75. Strong follow-through is noticeably lacking, notwithstanding the general bullish feeling.
In general, the recent trading range of 25,050–25,250 represents a critical zone of 25,000–25,300, where the higher end corresponds with the critical 78.6% retracement and the lower end lines up with the bullish gap support. This zone is critical for the weekly expiry. As a result, we still recommend entering on dips and booking profits at higher levels rather than chasing momentum.
Thematic plays are starting to acquire popularity, even while the index stays inside a certain range. The Nifty IT index has surpassed its most recent swing high, creating a traditional “Higher Top Higher Bottom” structure, which confirms our optimistic assessment of the IT industry. This implies that there may be room for improvement in this industry. Additionally, there have been notable breakouts in oil and gas equities, and we anticipate that this sector will continue to be strong in the foreseeable future.
Thursday Stocks to Purchase: Osho Krishan
Osho Krishan of Angel One gave two stock recommendations for Thursday’s purchases: Gail (India) Ltd. and HCL Technologies Ltd.
HCL Technologies, Ltd.
After a prolonged period of stasis, the price of HCL Technologies’ shares has seen significant buying activity in recent sessions, above both the 200-DSMA and important short-term EMAs on the daily chart. Bullish attitude is reinforced by rising trade volumes and favorable EMA crosses, which support the current price performance. Additionally, the stock is well-positioned and seems ready to continue its upward trajectory in the near future when seen through the lens of risk-reward.Therefore, with a stop loss of ₹1,640 and a potential upside target of ₹1,780-1,810, we advise purchasing HCL Technologies shares at a price between ₹1,710 and 1,700.
Gail (India) Ltd.
The price of Gail’s shares has risen significantly, helped by high trading activity in the previous session, and is already above the 200 DSMA. The recent positive crossover of the 21-DEMA above the 200 DSMA indicates a good short-term outlook, and the stock has also eclipsed its previous swing highs. Additionally, the 14-period momentum indicator’s alignment supports the optimistic outlook for the stock.
As a result, we advise purchasing Gail shares at a price between ₹198 and ₹195, with a stop loss of ₹187, with an upside target of ₹212–216.
