Stock market today: Indian equity benchmarks opened largely flat on Tuesday, as investors turned cautious after a strong rally in recent sessions and awaited fresh market triggers. Sentiment, however, remained supported by easing geopolitical tensions in the Middle East and softer crude oil prices.
The NSE slipped 0.13% to 24,071.30, while the BSE was marginally lower by 0.01% at 77,086.05 in early trade.
The muted opening comes after a robust run that saw the Nifty and Sensex advance 4.1% and 4.4%, respectively, over the past seven sessions, aided by declining oil prices and easing foreign capital outflows following measures to support the rupee.
Investor sentiment received support from developments on the geopolitical front, as the United States granted a 60-day waiver of sanctions against Iran following initial talks toward a tentative peace agreement. Separately, officials reported a sustained lull in hostilities in Lebanon, further boosting hopes of stability in the region.
Meanwhile, Brent crude futures hovered around $78 per barrel, offering relief to import-dependent economies such as India. However, broader Asian markets traded lower after a sharp rally in recent sessions, prompting investors to book profits and adopt a wait-and-watch approach.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50
Nifty 50 ended at a six-week closing high on weekly charts as of Friday, while the weekly candle also showed strength, closing higher than its open after a gap-up seen last Monday. Adding to this, the index has also given a fresh 2-month sloping trendline breakout on daily charts as it undergoes its broad 1000-point momentum breakout. We continue with our view on the index, seeing dips below 23,850 as an adding opportunity, with support at 23,800. Our positional buy call on Nifty 50 June Fut remains open at 24,600, with 23,850/ 24,150 completed last week.
Bank Nifty
Bank Nifty continued its lead, ending at over 3-month highs as the index has completed its earlier targets of 57000 and 57600 twice. This is now acting as a support, clubbed with its 200 DMA, for an upside swing towards 58,800, continuing its lead over Nifty 50. This implies another 1000-point up move unfolding on the Bank Nifty as well.
Stocks To Buy on Tuesday
On stocks to buy on Tuesday, Sagar Doshi of Nuvama recommended three stocks – Ltd, (India) Ltd, and Ltd (HAL).
Olectra Greentech (BUY): LCP: ₹1,523; SL: ₹1,435; TGT: ₹1,715
Stock has given a fresh 29-month trendline breakout on the weekly charts ending Friday. Adding to this, the stock has also recovered above its 200 WMA, confirming a fresh 7-month closing high on weekly charts. A quick 10-12% trade on the long side opens up as an initial target on post this breakout confirmation seen on charts last week.
GAIL (BUY): LCP: ₹177; SL: ₹168; TGT: ₹194
Stock has been holding up at 6-month highs for the past week. A repeat up move, followed by a small sideways consolidation, has been the price action on the stock over the past couple of weeks. With a 1-year trendline breakout and a 200 DMA crossover, further upside is visible.
HAL (BUY): LCP: ₹4,515; SL: ₹4,300; TGT: ₹4,930
Stock has been forming a bullish pole-and-flag pattern on the short-term daily timeframe, as well as on monthly charts, in which it failed once last month. Stock has now given a dual confirmation on the daily and weekly charts, allowing for further upside from current levels. We are eyeing for a quick 10% up move given the tailwind on the structure.
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.