The Indian stock market is gearing up for what could be a volatile trading session on Thursday. Market analysts predict that the two major indices, Nifty 50 and Sensex, will likely open the day on a downward trend. This forecast is primarily influenced by the escalating tensions in the Middle East, leading investors to approach the market cautiously. It is anticipated that the Nifty 50 will commence trading below its previous close of 25,796.90, with the GIFT Nifty trading at 25,701.50 points as of 8:13 IST. Similarly, the Sensex is expected to mirror this downward trajectory.
Top stocks to buy now
Several significant factors are shaping the market sentiment:
1. The ongoing crisis in the Middle East has instilled concern among investors, leading to a shift towards safer assets.
2. A surge in oil prices could impact India’s import costs.
3. Profit booking at record highs has resulted in a 1.6% decline in the Nifty 50 over the last three sessions.
Regarding technical analysis, Prashanth Tapse, Senior Vice President of Research at Mehta Equities, has highlighted crucial levels to monitor. The index’s all-time high of 26,277.30 is identified as a significant resistance level, while the psychological support level is pegged at 25,300, followed by 24,850. Additionally, the 200-day moving average (DMA) stands at 23,095.
In regulatory developments, the Securities and Exchange Board of India (SEBI) has introduced changes, such as reducing weekly options contracts to one per exchange and increasing the minimum trading amount from ₹500,000 to ₹1.5-2 million.
Market analyst Sumeet Bagadia has identified five promising breakout stocks investors may want to consider. These stocks are Beardsell Ltd, Jay Shree Tea & Industries Ltd, Bajaj Steel Industries Ltd, Renaissance Global Ltd, and DCW Ltd. Each of these stocks comes with specific buy, stop loss, and target price recommendations, providing investors with valuable guidance for their investment decisions.
Given the potential market volatility, investors must carefully approach their investment decisions.
