Mumbai (Maharashtra) [India]: The stock market, coming off a week’s low, opened with little fanfare but managed to nudge upward in early trading.
Market indices showed resilience, with the Sensex opening 45.94 points higher at 64,657.42, and the Nifty rose 27.60 points to start at 19,309.35.
As trading commenced, the Nifty companies experienced mixed fortunes, with 28 advancing and 22 declining.
Notable performers included Hindalco, Tata Steel, LITMindtree, HCL Technology, and Wipro, which led the gainers’ pack. In contrast, Apollo Hospital, Divis Lab, Cipla, HDFC Life, and SBI Life found themselves among the early losers.
However, the market is expected to open flat amid concerns related to the Israel war. Sentiment has shifted towards bearishness after the significant correction witnessed on Monday. The mid and small-cap stocks, in particular, faced significant selling pressure.
Varun Aggarwal, founder and managing director, Profit Idea, said, ‘Nifty is expected to open flat after heavy correction on Monday. The market will look to take cues from the Israel war. Sentiment has turned bearish after Monday’s fall. Most stocks especially mid and small-cap saw tremendous selling pressure. Investors should selectively pick quality stocks on dips.
The Indian growth story is here to stay. Indian economy is growing and gives huge opportunities for the medium to long term. Asia credit outlook yesterday said India will be 3rd largest economy soon’.
‘India’s dream of a 5 trillion economy will also be achieved within the next few years and imagine the size of the stock market. Investors should not panic about this war-driven fall, as in past we have seen that outcome after that is a big positive for the stock market. On data analytics, Open Interest (OI) data suggested 19000 level will be crucial. Heavy put writing is now at 19000 & fresh shifting from top puts has happened at this level. Bulls will try to defend this level. Technical support for bulls remains at 18887’, said Aggarwal.
Financial experts advise investors to carefully select quality stocks when they experience dips.
The prevailing consensus remains that India’s growth story is robust, and the country’s expanding economy continues to offer extensive opportunities for medium to long-term investments.
A recent Asia credit outlook even suggested that India is on track to become the world’s third-largest economy.
The target of India’s 5 trillion economy is expected to be achieved within the next few years, which could further expand the stock market.
‘Risk-defined low-risk income strategies are best for traders. Investors should pick stocks in a staggered manner. Sectors like IT, Banking, Pharma, FMCG, and Petrochemicals continue to look good. Index major Reliance, INFY, TCS, HDFC Bank looks good with limited downside’, added Aggarwal.
Data analytics reveal that the 19,000 level is crucial, with heavy put writing recorded at this level. Bulls are expected to defend this level, with technical support for them resting at 18,887.
Risk-defined, low-risk income strategies are considered ideal for traders. Investors are encouraged to accumulate stocks in a staggered manner. Sectors such as IT, banking, pharma, FMCG, and petrochemicals are currently viewed as favourable, with major index players like Reliance, INFY, TCS, and HDFC Bank appearing robust with limited downside risk.
While the market opens with mixed sentiment, cautious optimism and calculated investment choices remain the name of the game in this dynamic and ever-changing economic landscape.