Stock market today: The closed lower for the third straight session on Wednesday, December 10, as mixed global signals weighed ahead of the US Federal Reserve’s policy announcement later in the day.
The benchmark touched an intraday high of 85,020.34, gaining 354 points, but could not sustain the rise and fell 629 points from the peak, finishing in negative territory.
Ultimately, the 30-stock index ended 275 points, or 0.32%, lower at 84,391.27, while the Nifty 50 closed at 25,758, down 82 points, or 0.32%. The BSE Midcap and Smallcap indices declined 1.08% and 0.58%, respectively.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
Nifty continues to trade between two critical technical points, with markets awaiting clarity from the Fed outcome. On the higher side, Nifty faced resistance precisely at the 20-DEMA, which coincides with the trendline breakdown zone around 25950–26000. On the flip side, prices continue to defend the key support of the 50-DEMA and the 61.8% retracement of the recent November upmove placed near 25700. The coming session, especially the first couple of hours post the Fed policy announcement, will be extremely crucial. A sustained move below 25700 would technically invalidate the recent rally, potentially opening room for further weakness. Conversely, if the bulls are to make a comeback, this is the level where they must hold firm. A confirmation of strength would come only once Nifty breaks above the last two sessions’ high of 25950–26000 (20-DEMA zone), which would signal a resumption of the primary uptrend. Traders should keep a close watch on these reference levels and align their trades accordingly.
A key observation in today’s session was the behavior of the broader markets. Although the Midcap and Smallcap indices did not see strong follow-through buying after Tuesday’s bullish reversal pattern, they also did not retest Tuesday’s lows, unlike the benchmark indices. This creates a positive divergence, hinting at relative strength and an early sign of stability. If Nifty manages to hold its crucial supports, the broader markets could once again take the lead and offer selective outperforming opportunities. Traders should stay stock-specific and monitor this divergence closely.
Stocks To Buy on Thursday- Osho Krishan
On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks – Century Plyboards, ICICI Prudential Life Insurance Comp.
Century Plyboards
CENTURYPLY has exhibited robust momentum and has decisively moved beyond its prior consolidation phase, supported by a significant increase in trading volume. There have been numerous key developments concerning technical parameters. Notably, the ADX indicator has shown a marked increase, suggesting a strong momentum. Furthermore, both the 14-day RSI and the MACD histogram align favorably with the primary trend, reinforcing the bullish outlook.
Hence, we recommend a BUY in CENTURYPLY around 820-810 with a Stop Loss of 770 and a Target of 900.
ICICI Prudential Life Insurance Comp
ICICIPRULI has demonstrated a substantial increase in the recent session from the cluster of EMAs and 200 DSMA, accompanied by decent increase in traded volumes. Additionally, it has experienced a consolidation breakout on the daily charts. This breakout is indicative of a potential shift in market sentiment and may signal further upward movement. Simultaneously, various technical indicators are reflecting favorable trends, suggesting that positive momentum is likely to persist in the near term.
Hence, we recommend a BUY in ICICIPRULI around 630 with a Stop Loss of 605 and a Target of 670-680.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.