Stock Market NewsStock Market News Domestic benchmark indices, Sensex and Nifty 50, started the week on a subdued note due to uncertainties in the global economy. The 30-share BSE Sensex opened 0.42% lower, while the Nifty 50 opened 0.51% higher. Dr. VK Vijayakumar of Geojit Financial Services expects market consolidation, with support coming from Bank Nifty. Sectoral churn is anticipated due to money flowing into large-cap stocks and gains in overheated sectors. Nifty 50 and Sensex Profit booking led to losses in Nifty 50 and Sensex on Friday. Market breadth favored bears, with 18 Nifty 50 stocks moving higher and 32 falling. However, Nifty MidCap 50 outperformed. India’s VIX continued to decline, indicating lower volatility. Market Outlook Arvinder Singh Nanda of Master Capital Services highlights key economic data that will shape market outlook next week. These include core PCE price index, US GDP, initial unemployment claims, and Indian infrastructure production. Dharmesh Shah’s Outlook ICICI Securities’ Dharmesh Shah expects Nifty 50 to move towards 23,800 in coming weeks. He cites positive sector rotation and improving market breadth as indicators of inherent strength. The index’s current correction is healthy and should pave the way for further gains. Top Stock Recommendations * Shop GAIL Ltd (₹208-216; target: ₹240; stop loss: ₹196) * Buy Kajaria Ceramics Ltd (₹1,315-1,350; target: ₹1,495; stop loss: ₹1,220) Disclaimer Recommendations are from individual analysts and not Mint. Consult an expert before investing.
Stock market news: As major markets opened on Monday, the domestic benchmark indices, the Sensex and Nifty 50, had a subdued start to the week. Early trading hours showed a negative outlook, driven by broader market concerns amid uncertainties surrounding the global economy.
The 30-share BSE Sensex opened lower by 324.18 points or 0.42% at the level of 76,885.65, while the Nifty 50 opened at the level of 23,382.30, up 118.80 points or 0.51 %.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, expects that the market is likely to continue to consolidate. The near-term strength of the market is likely to come from Bank Nifty, which is supported by institutional buying, especially FIIs who switched to buying last week. However, the SEBI survey on Quant Mutual Funds is somewhat worrying for the market.
Also read: Nifty 50 stock price live updates: Nifty 50 is trading at ₹23386.7
Given that money is flowing into reasonably priced large-cap stocks and gains are being made in certain overheated sectors, sectoral churn in the market could increase.
Profit booking was the focus of Friday’s session, which led to domestic benchmark indices Nifty 50 and Sensex giving up gains in the early morning and remaining negative throughout the day.
Market experts noted that market breadth also favored the bears as only 18 stocks in Nifty 50 moved higher while 32 stocks fell. Interestingly, Nifty MidCap 50 finished slightly above the dotted lines in broader markets.
Another encouraging observation was that India’s VIX continued its downward trend, falling 1.27% and finding it difficult to stay at 13.
Also read: Nifty 50, Sensex open weakly dragged by bank, metal stocks
Key domestic and international economic data will shape the market outlook next week, said Arvinder Singh Nanda, Senior Vice President, Master Capital Services. The core PCE price index (annualized) (May), US GDP (quarterly) (Q1), initial unemployment claims, UK GDP (annualized), UK GDP (quarterly) and Indian infrastructure production (quarterly) (May) will be the focus.
Also read: Stock market today: Sensex and Nifty 50 end in red on profit booking amid weak global cues
Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
The index started the shortened week on a soft note and witnessed moderate movement throughout the week. The weekly price action formed a high-wave candle with a higher high-low, indicating increased volatility amid stock-specific action.
The ongoing sector rotation, supported by increasing market breadth, indicates an inherent strength that prompts us to reiterate our positive stance and expect the Nifty 50 to gradually move towards 23,800 in the coming weeks.
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We believe the index is undergoing a time correction after an 11% rally (Election Day low), which would make the market healthy and pave the way for the next rise. So an extended breather from here should be capitalized as an incremental buying opportunity as strong support is placed at 23,000. Our positive bias is further validated by the following observations:
a) Renewed traction in Bank Nifty would give Nifty impetus to redeem higher as Bank Nifty has a weightage of ~35% in Nifty 50.
b) The robust pricing structure, supported by improved market breadth, indicates strong internal market drivers. Market breadth has shown renewed optimism as shares have jumped above the 50-day ema from 51% just before the election to 84%.
c) Structurally, global markets are in an upward trend and are unlikely to lead to increased volatility. Therefore, temporary volatility should not be interpreted as negative.
Structurally, the formation of higher highs and lows means increased buying demand, leaving us with the support base at 23,000 as it is the 20 day EMA.
As per expectations, Bank Nifty traded higher and recorded a new lifetime high. We expect the banking index to continue its journey north, eventually heading towards 53,000 in the coming weeks, while 49,900 will serve as key support.
Also read: Dividend stocks: Titan, REC, Bajaj Holdings, IndusInd Bank, among others to trade ex-dividend next week; Full list here
Top Stock Recommendations:
- Shop GAIL Ltd in the range of ₹208-216 for the purpose of ₹240 with a stop loss of ₹196.
2. Buy Kajaria Ceramics Ltd in the range of ₹1,315-1,350 for the purpose of ₹1,495 with a stop loss of ₹1,220.
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Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We advise investors to contact certified experts before making investment decisions.
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