Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, plummeted on Thursday, primarily weighed down by HDFC Bank following the resignation of its part-time chairman, while rising crude oil prices and a stern stance from the Federal Reserve impacted global market sentiment.
As of 10:18 IST, the Nifty 50 index was down 2.34% at 23,221 . 65, and the BSE Sensex fell 2.45% to 74,862.90.
, the largest private lender in India and the most significant stock in the indices, experienced a decline of up to 8.66%, marking its largest intraday drop in more than two years, after Atanu Chakraborty stepped down as part-time chairman due to disagreements regarding “values and ethics.” The broader mid-cap and small-cap segments also declined by around 2% each.
Other Asian markets fell by 2.3% in response to a sharp decline in Wall Street the previous day, as soaring crude prices and a hawkish Federal Reserve further fueled a global market selloff.
Iran launched attacks on multiple energy facilities throughout the Middle East on Wednesday, in response to a strike on its South Pars gas field, representing a significant escalation in the conflict and causing crude oil prices to rise to $112 per barrel.
The Federal Reserve held interest rates steady on Wednesday but adopted a hawkish stance, pointing to risks stemming from the Iran conflict that have led to increased energy prices.
Raising US interest rates makes countries like India, which are considered emerging markets, less appealing to foreign investors.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The market rebound has extended into a third consecutive session, with prices successfully filling two bearish gaps formed last week, an indication of strengthening bullish momentum. Despite a sharp recovery of over 800 points from recent lows, the presence of broad-based buying interest suggests that the uptrend may sustain in the near term.
Momentum indicators reinforce this outlook. The RSI (Smoothened) has generated a fresh buy crossover on the daily chart while remaining in the oversold zone, signalling potential for further upside. Additionally, recent sessions have demonstrated a consistent pattern of intraday dips being bought into, a trend that is likely to persist. Consequently, declines may be viewed as buying opportunities.
From a technical perspective, the 23,600-23,500 zone is expected to provide immediate support. On the upside, the index is retracing its decline from the recent swing high near 26,000, with the 38.2% Fibonacci retracement level positioned around 24,100, acting as a key resistance. The psychological level of 24,000 may also pose an interim hurdle.
Broader markets have shown relative strength, with midcap stocks outperforming. Given the seasonal tendency for increased buying in midcaps during late March, traders should prioritize selective, stock-specific opportunities.
Stocks To Buy on Thursday- Osho Krishan
On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks -Ltd, and Ltd.
PG Electroplast Ltd
PGEL has undergone a meaningful correction, with prices retreating to the lower band of its consolidation range. However, the past few sessions have witnessed a strong rebound from oversold levels, indicating emerging buying interest on the daily chart. The 14-day RSI has also registered a positive crossover, reinforcing the likelihood of a bullish reversal. This technical setup suggests the stock may regain upward traction in the near term, supported by improving momentum indicators.
Hence, we recommend a BUY in PG Electroplast around ₹520-510 with a Stop Loss of ₹490 and a Target of ₹570-575.
Samvardhana Motherson International Ltd
Samvardhana Motherson has been exhibiting a consistent pattern of higher highs and higher lows, reflecting a sustained uptrend. Following the recent corrective phase, the price has approached the crucial support level of the 200-DSMA, a level that has historically acted as a strong base and triggered renewed buying interest. Adding to the positive outlook, the RSI indicator has turned bullish, supported by a favorable crossover, which signals strengthening momentum. This confluence of technical factors suggests that the stock is well-positioned for a potential rebound, with the prevailing trend likely to resume in the near term.
Hence, we recommend a BUY in Samvardhana Motherson around ₹115 with a Stop Loss of ₹105 and a Target of ₹128-132.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.