Nifty and Bank Nifty on 18 December: The Indian stock market witnessed a sharp decline on Wednesday with both key indices closing in red. The Nifty 50 closed 0.56% lower, down by 137 points, at 24,198.85, while the Sensex was down 502 points to 80,182. The Bank Nifty fell 1.32%, tracking broader market weakness.
The sectoral pressure was led by power and metal sectors, which pulled the markets down, while banking stocks declined sharply by 1.32%.
The top losers on Nifty were Tata Motors (-3%), PowerGrid (-2.50%), BEL (-2.50%) JSW Steel (-2.00%), NTPC (-2.10%), and Adani Ports (-1.77%).
The top gainers were Trent (2.50%), Dr Reddy (2.22%), and Cipla (1.50%), and Wipro (1.20%).
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Market outlook
A key level to watch on the downside is 24,010. The market has also witnessed a negative crossover of the 21 EMA (Exponential Moving Averages) and 50 EMA. Upside resistance is expected at 24,400-24,450. Nifty has lost almost 580 points over the last three days, which is highly concerning for the bulls.
Thursday marks the Nifty weekly expiry, and as per options data, the maximum open interest (OI) buildup is at 24,000 on the put side, serving as a key support area. On the call side, 24,300-24,400 shows major OI buildups, indicating strong resistance for the next few days.
Market sentiment may also be influenced by the outcome of the US Federal Reserve’s meeting, which is expected to deliver a 25 basis point rate cut. Caution is advised as bearish signals continue to dominate the market in the short term.
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Three stocks to buy recommended by research analyst Ankush Bajaj:
Infosys: Buy at ₹1,977; Target at ₹2,020-2,050; Stop Loss at ₹1,935.
IT looks better as compared with other sectors. Also, Infosys retested his major breakout level, which was ₹1,955-1,970. The stock is expected to reach a new lifetime high soon.
Muthoot Finance Ltd: Buy at ₹2,125; Target at ₹2,180-2,200; Stop Loss at ₹2,080.
Muthoot has given a fresh breakout in the downtrend market, which indicates a good upside potential, with expectations that the stock could scale a lifetime high in the near term.
Coforge: Buy at ₹9,478; Target at ₹9,650-9,720; Stop Loss at ₹9,650-9,720
Based on the IT bullish theme, Coforge is trading at a lifetime high and a good rally is expected in the near term.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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