The Indian share market commenced trading lower on Thursday, marking an end to its four-day winning streak that had begun last Friday. This decline mirrored the weakness observed in Asian stock markets. The Nifty 50 index witnessed a drop of nearly 60 points, while the BSE Sensex fell by over 200 points. The Bank Nifty also experienced a significant decline of approximately 170 points.
The downward trend in Asian equity markets was primarily driven by concerns stemming from disappointing financial results released by Meta Platforms Inc. These results raised apprehensions about whether the technology sector, which has been a primary driver of the bull market in equities, had reached its peak. Consequently, equity benchmarks in Hong Kong, Japan, and mainland China slid, while contracts for US stocks also indicated declines. Australian financial markets remained closed for a public holiday.
Meanwhile, the yen extended its losses after weakening beyond 155 per dollar for the first time in over three decades on Wednesday. This development heightened the possibility of intervention ahead of the Bank of Japan’s decision meeting scheduled for Friday.
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, expressed his belief that the Indian stock market would maintain a positive bias as long as the Nifty 50 index remained above the 22,200 to 22,250 mark. He further stated that the market sentiment would turn even more bullish if the index breached the resistance levels of 22,550 to 22,600.
Dongre recommended three stocks for investment: IndusInd Bank, Federal Bank, and GAIL. He provided specific buy and target prices, along with stop loss levels, for each stock.
In terms of the outlook for the Indian stock market on Thursday, Dongre stated, “On the Nifty front, we are now on the support level of 22,200 to 22,250 zone, which will keep the movement upward for the Nifty in the upcoming sessions. Now the resistance for the Nifty spot will be 22500–22600. As per the latest chart pattern, we have seen the gap up opening and then continuing its bullish trend pattern for the rest of the day and closing in positive territory. So, on the Nifty front, until the time holds above its support level of 22200–22250, the Nifty will remain in a bullish trend until the resistance level of 22550 to 22600.”
Dongre also provided an outlook for the Bank Nifty, saying, “At this juncture, on the other hand, on the Bank Nifty front, we have again seen a gap-up opening today, and continue its bullish trend for the rest of the day, so for the upcoming trading session, Bank Nifty support will be at the 47400 to 47500 level and resistance will be at the 48,500 level.”
