Stock Market News: Starting Tuesday’s trading, the domestic equity benchmark indices, namely the Sensex and Nifty 50, initially showed a downward trend but later recovered some of their initial losses. The 30-share BSE Sensex opened lower by 145.74 points or 0.20% at the level of 74,022.30, whereas the Nifty 50 opened at the level of 22,458.80, down by 23.20 points or 0.10%. Dr. V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services, defines a bull market by its ability to reach new highs. This was evident when the Nifty 50 achieved a new intraday high yesterday. In this optimistic scenario, characterized by strong momentum and consistent fund inflows into the market, any decline is anticipated to be met with buying activity, thereby imparting resilience to the market.
The Sensex and Nifty 50 commenced the new fiscal year on a positive note, hitting new all-time highs in intraday trading before ending Monday’s session in the green amidst stable trends in Asian markets and foreign fund inflows. According to market experts, Monday’s trading session was highly favorable for the bulls on Dalal Street, with the Nifty 50 reaching a new all-time high of 22,529.95, attributed to bargain hunting and the fear of missing out on buying. Sectoral indices such as Nifty Metal (+3.62%), Nifty Media (+4.73%), and Nifty Realty (+4.21%) recorded substantial gains. The Nifty SmallCap index surged by 3%, while MidCap gained 1.58%.
By the session’s close, the 30-share BSE Sensex concluded higher by 363.20 points or 0.49% at the level of 74,014.55, while the Nifty 50 ended at 22,462.00, up by 135.10 points or 0.61%.
Market Review and Outlook – Ruchit Jain
Following the extended weekend, the Nifty 50 commenced the new financial year on a positive trajectory, achieving a fresh record high of 22,530. Subsequently, the index traded within a narrow range throughout the day, concluding just below the 22,500 mark with gains of six-tenths of a percent.
The beginning of the new financial year 2024-2025 has brought optimism to the markets, evident in the Nifty 50’s attainment of a new record peak. Moreover, stocks in the broader markets have observed notable buying interest over the past few trading sessions. In the derivatives segment, there was a decrease in short positions carried forward from the March series to the April series during the previous week. Positive readings on the RSI oscillator for key indices like the Nifty 50, Bank Nifty, and the Midcap index indicate a positive broader trend. Notably, the 22,500 call option currently holds the highest open interest among call options in the options segment. Monitoring this closely is advisable, as significant buildup could lead to range-bound sessions. However, a continuation of the upward movement beyond 22,530 may trigger a rally towards the 22,700–22,750 levels according to the retracement theory. On the downside, immediate support is identified at 22,300–22,250, with traders advised to consider buying opportunities in case of any intraday declines.
Stocks To Buy Today – Ruchit Jain
Ruchit Jain is recommending two stocks for today: Century Textiles & Industries Ltd and Indian Railway Catering and Tourism Corporation Ltd (IRCTC).
Century Textiles & Industries Ltd
According to Ruchit, the stock recently broke out of a consolidation phase last week, with the breakout being accompanied by notably high trading volumes. Additionally, the RSI oscillator signals positivity, suggesting a continuation of the upward trend. Short-term traders are suggested to consider purchasing the stock around the ₹1,700 mark and consider adding to their positions during any declines towards ₹1,650. Jain recommends placing a stop loss below ₹1,550 for long positions, with a potential target range of ₹1,950–2,000.
Indian Railway Catering and Tourism Corporation Ltd (IRCTC)
Jain elaborated that over the past few weeks, the stock experienced a corrective phase coinciding with the broader market correction. Despite this, there was no notable increase in trading volumes during the correction, and the stock established a support base around its 89-day Exponential Moving Average (DEMA). Currently, prices have broken out above a descending trendline resistance. Consequently, short-term traders are recommended to consider buying the stock within the range of ₹960–950. For long positions, a stop loss should be placed below ₹920, targeting a potential range of ₹1,040–1,050.