The BSE Sensex opened lower by 104.87 points or down 0.14% at 73,767.42 level while the Nifty 50 opened at 22,371.25 level, down 34.30 points or 0.15%.
“While the market is stable, the small cap index is showing some tension with a cut of 0.5% yesterday. There may be some selling happening in small caps in response to SEBI’s advisory to mutual funds, which points to concerns over overvaluations. Weakness in the small cap segment is likely to continue.While there is fundamental support to the Indian stock market, high valuations may limit further rally.The market is likely to remain range-bound in the near term.As expected RIL crossed ₹3000 level,” explained Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on March 5
The Sensex and the Nifty 50 ended at new all-time highs in Monday’s session amid a volatile session that included buying in energy and banking stocks as Moody’s revised its 2024 GDP growth projection to “better than expected ” economic data.
On Monday, the 30-share BSE Sensex ended higher by 66.14 points higher or 0.09% at 73,872.29 level while the Nifty 50 closed at 22,405.60 level, up 27.20 points or 0.12%.
Sector-wise, it was a mixed bag in Monday’s session, with buying witnessed in Oil & Gas, Financials and Private Banking, according to Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd. Given that the government is expected to announce infrastructure projects worth more than Rs. 1 lakh crore in the coming days, most of which is linked to the power sector, sectors including capital goods, infrastructure stocks and power have gained traction. To add to the rise in electricity stocks, domestic power demand rose 8% in February to a record high of 128 billion units.
Also Read: Stock market today: Nifty 50, Sensex end higher for 4th consecutive session; hats wobble
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Nifty 50 Outlook
Nifty 50 started the first day of the week around 22,400 and traded within a narrow range throughout the day. The index ended around the opening levels itself, thus forming a small ‘Doji’ candlestick pattern on the daily chart, said. Ruchit Jain, Senior Research Analyst at 5paisa.
After a time-wise correction phase for about a month, our markets resumed the positive momentum over the past week after the GDP data. The index remains in an uptrend, but if we look at the stock-specific action, many stocks within the mid-cap and small-cap names have gone through a correction phase. The broader trend remains positive as the index has continued to move higher, the RSI is positive and the index is also trading above the moving averages. However, the immediate support is placed a little lower around 22,200, where the average support is seen on the lower frame chart, and the open interest in the derivatives segment is highest at the 22,200 put option, explained Jain.
Also Read: Indian stock market: 6 key things that changed for market overnight – Gift Nifty, China’s GDP to rise in US bond yields
Share Marketing Tips For This Week
“Therefore, for the index, one should trade with a buy-on-less approach, while stock-specific opportunities could provide better opportunities. One notable data was also the pre-decline ratio in the NSE, which was more favorable to declines despite that. index trading at highs. Thus, one should be very selective in stock selection as well,” advised Ruchit.
Stocks to Buy This Week – Ruchit Jain
On stocks to buy this week, Ruchit Jain recommended two stocks – Tata Chemicals Ltd and Max Financial Services Ltd.
Tata Chemicals Ltd
Ruchit stated that on the daily chart, the stock pulled back from the multiple supports along with the higher volume and sustained above the 21-day SMA. Additionally, the price moved above the Upper Bollinger Band formation, indicating further upside potential. Traders can consider a buying opportunity in the range of ₹1,003–990 with potential targets of ₹1,070 and ₹1,100, keeping a stop loss at ₹948 levels.
Max Financial Services Ltd
According to Jain, in the daily time frame, the stock experienced a break of consolidation phase and moved above a falling trend, indicating a possible uptrend in the near term. Traders may consider shopping around ₹1,000 to ₹985 with a stop loss below ₹940. The above objectives are ₹1,060 and ₹1,120.
Also Read: Tata Motors share price rises 4.5% on demerger plan, crosses ₹1,000 for the first time
Disclaimer: The opinions and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 05 Mar 2024, 10:23 IST