Stock market today: The major domestic stock indices, Nifty 50 and Sensex, began trading on Monday with gains, following what was their worst week of 2024 last Friday. On Monday, India’s benchmark indexes experienced an upswing, primarily driven by the heavily weighted ITC, Tech Mahindra, Reliance Industries, HDFC Bank and the metals sector, while also following positive trends in regional markets due to favorable US inflation data.
At 14:18 IST, On Monday, Sensex gained 419.98 points to 78,461.57; Nifty 50 rose146.25 points to 23,733.75.
At the start of trading, the Nifty 50 index jumped by 150 points, or 0.64%, commencing at 23,738.20 points, while the Sensex index rose by over 448 points to begin at 78,490.19 points. Analysts indicated that for the markets to witness a significant rally, substantial advancements in inflation are necessary, further rate cuts are essential, and reduced volatility from Trump 2.0 is required for a sustained increase. Nonetheless, there remains a possibility for a year-end rally.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that the FII purchasing activity, which was seen in early December, completely shifted last week with FII selling amounting to ₹15826 crores. The strong performance of the US market (with the S&P 500 gaining 25% YTD) combined with the comparatively weaker performance of India (where the Nifty 50 rose by 14.64% YTD) is influencing this change in the FII approach.
Contributing factors such as the robust US economy, solid US corporate earnings, the anticipated corporate tax reduction by President Trump soon after he takes office, and the consistent strengthening of the US dollar are advantageous for the US market. In the near term, there may be temporary market recoveries, but these could be succeeded by further FII selling.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
After witnessing a sharp decline in the last few sessions, Nifty 50 witnessed an upside bounce on Monday and is currently trading higher. The overall chart pattern of Nifty 50 remains negative. Having showed trended decline recently, the present upside bounce is expected to be short lived and this could be a sell on rise opportunity. The crucial overhead resistance is placed around 23,900-24,000. A decisive break below 23,500 could open sharp weakness down to 23,100-23,000 levels in the near term.
Technical Picks: Stocks to buy or sell in the near-term
1. Buy Aster DM Healthcare Ltd at ₹506, Target ₹540, Stoploss ₹480, Timeframe 1 week.
2. Sell KPIT Technologies Ltd at ₹1,442, Target 1,370, Stoploss 1,485, Timeframe 1 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 decision.
