Nifty 50 and Sensex closed marginally lower in today’s trading session. Nifty 50 opened at 19,682.80, touched an intraday high of 19,699.35, and an intraday low of 19,637.45. It finally closed at 19,664.70, down 0.05%. The Sensex closed at 65,945.47, down 0.12%. The BSE Midcap index ended in the red, falling 0.09%, while the BSE Smallcap index saw a gain of 0.33%.
IT stocks remained weak, falling 0.5% on concerns over demand uncertainties due to a higher interest rate environment in the US, which is a key market for Indian IT companies.
Intraday trade saw 169 stocks hitting their fresh 52-week highs on the BSE, including Colgate-Palmolive (India), Coal India, Tata Consumer Products, Trent, and Varun Beverages.
Vedanta Resources’ corporate family rating (CFR) was downgraded by global ratings agency Moody’s from Caa1 to Caa2 due to an elevated risk of debt restructuring over the next few months.
Technical analysts have shared their outlook for the Nifty and Bank Nifty. Ajit Mishra, SVP – Technical Research, Religare Broking, stated that a rebound on the global front combined with oversold positions may cap the downside for the Nifty. Rupak De, Senior Technical Analyst at LKP Securities, mentioned that the short-term sentiment for the Nifty remains bearish as it closed below the 21EMA. Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, highlighted that the Bank Nifty has remained in a consolidation phase, and a breakout is needed to provide a clear direction for the market.
In global news, US Treasury yields hit a multi-year high and the US dollar rose to a 10-month high level, raising concerns over high interest rates and their impact on the global economy. Major central banks, including the US Fed, the European Central Bank (ECB), and the Bank of England (BoE), have indicated that interest rates will stay high for a longer period.
Oil prices rebounded from a two-week low as expectations of tighter supply outweighed worries about the economic outlook. Brent crude settled 0.7% higher at $93.96 a barrel, and US West Texas Intermediate crude settled 0.8% higher at $90.39 a barrel.
For day trading, stock market experts have recommended six stocks to buy today: Sumeet Bagadia, Executive Director at Choice Broking; Mitesh Karwa, Research Analyst at Bonanza Portfolio Ltd; and Religare Broking analysts.
Definitions:
– Nifty 50: The National Stock Exchange of India’s benchmark stock market index for Indian equity market.
– Sensex: The S&P BSE Sensex is the benchmark index of the Bombay Stock Exchange (BSE).
– BSE Midcap index: An index that captures the performance of the mid-sized companies listed on the Bombay Stock Exchange.
– BSE Smallcap index: An index that captures the performance of the small-sized companies listed on the Bombay Stock Exchange.
– IT stocks: Stocks of companies in the information technology sector.
– 52-week high: The highest price at which a stock has traded during the past year.
– Corporate family rating (CFR): A credit rating assigned to a company or organization as a whole, rather than specific debt issuances.
– Interest rate environment: The current state of interest rates in the market.
– Intraday trade: Buying and selling of stocks on the same day.
– Support level: A price level where a stock has historically had difficulty falling below.
– Consolidation phase: A period during which a stock or index trades within a range, without making significant upward or downward movements.
– Breakout: A significant move by a stock or index above or below a key level of support or resistance.
Sources:
– Mint article: “Stock Market Update: Nifty 50 and Sensex close marginally lower”
– Reuters: Oil prices settle higher on expectations of tighter supply
