Stock Market News: Profit-booking took centre stage on Friday's session, prompting the domestic benchmark indices, the Nifty 50 and Sensex, to give up early morning gains and remain in the negative throughout the day's trading.
Market experts noted that the market breadth too favoured the bears as only 18 stocks in Nifty 50 marched higher against 32 stocks which slid down.
The continuous sectoral rotation backed by improving market breadth signifies inherent strength that makes us reiterate our positive stance and expect Nifty 50 to gradually head towards 23,800 in coming weeks.
Market breadth has shown renewed optimism as stocks above 50-day ema has improvised from 51% just before elections to 84%.
Buy Kajaria Ceramics Ltd in the range of ₹1,315-1,350 for the target of ₹1,495 with a stop loss of ₹1,220.
Stock Market News: Profit-booking took centre stage on Friday's session, prompting the domestic benchmark indices, the Nifty 50 and Sensex, to give up early morning gains and remain in the negative throughout the day's trading.
Market experts noted that the market breadth too favoured the bears as only 18 stocks in Nifty 50 marched higher against 32 stocks which slid down. Interestingly, in broader markets, Nifty MidCap 50 finished slightly above the dotted lines.
One more encouraging observation was that the India VIX continued its downward trend, dropping 1.27% and found it difficult to stay at 13.
Major domestic and international economic data will determine the market's perspective next week, according to Arvinder Singh Nanda, Senior Vice President of Master Capital Services. Core PCE Price Index (YoY) (May), US GDP (QoQ) (Q1), Initial Jobless Claims, UK GDP (YoY), UK GDP (QoQ), and India Infrastructure Output (YoY) (May) will be the focus.
Also Read: Stock market today: Sensex, Nifty 50 end in the red on profit booking amid weak global cues
Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
The index started the truncated week on a soft note and witnessed lackluster move throughout the week. The weekly price action formed a high wave candle carrying higher high-low, indicating elevated volatility amid stock specific action.
The continuous sectoral rotation backed by improving market breadth signifies inherent strength that makes us reiterate our positive stance and expect Nifty 50 to gradually head towards 23,800 in coming weeks.
Also Read: Stocks to buy: Kripashankar Maurya of Choice Broking recommends these 4 fundamental picks for the next 6 months
We believe, index is undergoing time-wise corRECtion after 11% rally (Election Day outcome low) which would make market healthy and pave the way for next leg of up move. Thus, extended breather from hereon should be capitalised as incremental buying opportunity as strong support is placed at 23,000. Our positive bias is further validated by following observations:
a) Revived traction in Bank Nifty would provide impetus for Nifty to resolve higher as Bank Nifty carries ~35% weightage in Nifty 50.
b) Robust price structure backed by improving market breadth highlights strong market internals. Market breadth has shown renewed optimism as stocks above 50-day ema has improvised from 51% just before elections to 84%.
c) Structurally global markets are in an uptrend and unlikely to trigger elevated volatility. Hence, temporary volatility should not be construed as negative.
Structurally, the formation of higher peak and trough signifies elevated buying demand that makes us retain support base at 23000 as it is 20 days EMA.
On expected lines, Bank Nifty resolved higher and clocked a fresh lifetime high. We expect, Banking index to endure its northbound journey and eventually head towards 53,000 in coming weeks while 49,900 would act 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:
Buy GAIL Ltd in the range of ₹ 208-216 for the target of ₹ 240 with a stop loss of ₹ 196.
2. Buy Kajaria Ceramics Ltd in the range of ₹1,315-1,350 for the target of ₹1,495 with a stop loss of ₹1,220.
Also Read: Weekend Wrap: From JSW Energy to Uno Minda, top market movers and news of week
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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