Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, witnessed declines on Tuesday, April 7, impacted by concerns over an escalation in the conflict in the Middle East and a critical deadline set by US President Donald Trump for reaching an agreement.
The Nifty 50 dropped by 0.65% to 22,818.80, while the Sensex decreased by 0.64% to 73,639.40 as of 9:50 IST.
Fourteen out of the 16 major sectors saw a downturn. Additionally, the broader small-cap and mid-cap indices fell by 0.5% and 1%, respectively.
The US president has repeated threats to target Iran’s power facilities and civilian infrastructure unless a deal is reached by 8 p.m. EDT Tuesday, or 5:30 a.m. IST on Wednesday, to reopen the Strait of Hormuz. Iran stated that it seeks a lasting resolution to the conflict rather than a temporary truce.
Brent crude prices remained around $112 per barrel. High crude prices are putting pressure on India’s import expenses and impacting economic growth and corporate profit margins.
The Nifty 50 and Sensex have both fallen by 9.5% since the onset of the Iran war on February 28.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50
Nifty 50 has made a new 3 day high after witnessing largest intraday pullback ever since the war started. Going forward, we believe dips to sub 22,700-800 are to be brought for the target of 23,300-23,400 in short term.
Bank Nifty
Bank Nifty as well covered all its last week’s losses witnessing over 1,500 points intraday recovery during the session. Dips to sub 52,000 level would be bought for a target of 54,000-54,500.
Stocks To Buy on Tuesday
On stocks to buy on Tuesday, Sagar Doshi of Nuvama recommended three stocks – Ltd,Ltd, and Ltd.
Laurus Labs Ltd (BUY): LCP: ₹1,058; SL: ₹1,010; TGT: ₹1,150
Stock has been consolidating since last couple of months and hasn’t participated in the broader market downtrend. The consolidation so far has been constructive in nature and stock has taken support at its 21-day EMA. Going forward we believe stock can move 8-10% in quick time.
Data Patterns (BUY): LCP: ₹3,136; SL: ₹2,950; TGT: ₹3,450
Stock has been digesting its gains and currently consolidating around its 20 DMA. Stock has been showing immense strength as it is within 15% distance of its all-time high levels and showing signs of accumulation. One should look to buy with a stop of 2950 for 8-10% gain.
Syrma SGS Technology (BUY): LCP: ₹808; SL: ₹760; TGT: ₹910
Stock is witnessing strong volumes on an up-day vs down day, a strong sign of accumulation. Since onset of war, stock has not participated in broader market downtrend and shown immense signs of strength. One should look to buy for a new all time high levels target.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.