I have been observing Indian stock market for quite a long period now and can say with conviction that the key indices have gradually gained traction courtesy of recent happenings. Today’s trade set up for the day, strategy for gold considering the surrounding tensions created and an analysis of the best stocks recommended including both buys and sells are given in this essay.
Market Overview: Important Indices to look at
Recovery of the Nifty 50 index has been quite spectacular considering how it got slumped to a low of 23,260 in the recent past. Indicators are signalling a positive bias with learning that the bulls have lined up aggressively for 24,500 level which is now a major resistance ceiling. A push above this resistance might encourage further buying. As per the information from market experts, 23,800 remains a near-term support for Nifty.
Let’s take a pause for a second to understand how some internal variables can change investor sentiment. Last week’s Maharashtra Assembly Election results have contributed to a rise in market sentiment. Both indices ended with a healthy margin with the Nifty 50 ending at 24,221.90 whilst the S&P BSE Sensex finished at 80,109.85 at the end of last week. It is the broader market which even outperformed the stronger markets with gains of 1%-5%.
Business, real estate, and oil and gas are among the primary inducers of this celebration, with the Nifty Bank sector also gaining 2.10% over the course of the day at 52,207.50.
The market setup for 12 July 2023
Considering Nifty 50
The startling recovery which started from 23260’s levels is now visible throughout the 2 day rally, gaining more than 1000 points in just two sessions.
But the resistance at 24500 looms large, and any clear breach in this level could take the price even higher.
Analysts believe that the immediate support at 23800 is key to sustaining this bullish trend.
Considering Nifty Bank
The area around 52600 is expected to act as a resistance for the time being. This level can shift the direction of the trend should there be a breakout.
The key support area for Nifty Bank is at the level of 51270, which protects the markets from corrected moves.
With respect to Global Cues, with respect to Russia and Ukraine and Oil And Gas Prices
Geopolitical factors continue to affect the global and Indian markets. And one of those is the hope of a ceasefire in the Russia Ukraine conflict along with less tension near Lebanon.
The Price Trends with respect to Indian Petrocurrencies
The easing of Geopolitical Risk is expected to lead to a dip in Gold prices.
Anuj Gupta HDFC Securities Head of Commodity & Currency believes that the gold prices on the MCX could range between 72000 to 78500 for 10 grams.
Given the trend, the easing of tensions one expects would bring investors back to the stock-equities, which for the time being is sufficient for the markets to gain further.
Top Stocks to Watch
According to investment professionals, there are some notable stocks to hold with the potential for gains. Here is an analysis:
Sumeet Bagadia’s Picks
Federal Bank Ltd
Buy at: 212.88
Target: 225
Stop-loss: 205
Federal Bank is still bullish and there is tremendous trading volume and several higher highs to support this price action. The stock is still within the highest price in history range, and it has room to grow.
DOMS Industries Ltd
Buy at: 3069
Target: 3250
Stop-loss: 2950
DOMS Industries seems to have passed through a consolidation phase as it has broken major resistance levels on strong volumes indicating a bullish breakout.
Ganesh Dongre’s Picks
Cipla Ltd
Buy at: 1507
Target: 1545
Stop-loss: 1480
A bullish reversal pattern is forming in Cipla’s trend which can result in short-term gains while support stands strong at 1480.
Petronet LNG Ltd
Buy at: 334
Target: 345
Stop-loss: 324
Petronet LNG appears to be in the process of reversing upwards with a strong bullish reversal impending.
Container Corporation of India Ltd (CONCOR)
Buy at: 807
Target: 845
Stop-loss: 795
The probable trade in CONCOR is a long one as it is in a bullish trend , with possible target price on the upside and support on the downside at 795.
Market Sentiment and Key Drivers
The victory for NDA in Maharashtra seems to have also boosted the mood of the investors.
With state elections out of the way, the market’s attention now will turn to earnings, budget announcements and global policy decisions. Examples of aspects that will remain on the radar should include FPI outflows, the strong dollar,and sustained inflation. Nevertheless, these trends, according to experts, are less likely to delay the broader momentum of the market in the short term.
Conclusion – Sustainability of the Indian stock market is now at a crossroads with Nifty 50 and Nifty Bank indices positioned to go even higher should the key resistance points are crossed. Now while the chances of going higher have increased now there are geopolitical tensions which will ease and aid the equity markets but have a decreasing push on gold prices. It is strongly recommended that investors watch the market from a distance and focus on professional stock suggestions for sound decision-making.
Disclaimer – The recommendations are rendered as per technical analysis of experts and experts only. Therefore, investors employ certified experts before putting money in investments.