Market Rebound
The Indian stock market saw a significant rebound on Thursday, December 11, after a three-day decline. This rebound came after the Federal Reserve announced a 25-basis-point rate cut. The BSE Sensex climbed 426.86 points or 0.51%, to settle at 84,818.13, while the NSE Nifty appreciated by 140.55 points, or 0.55%, to close at 25,898.55.
Indian Rupee Hits Record Low
Despite the market rebound, the Indian rupee hit a fresh record low of 90.33 against the US dollar. The rupee faced intense selling pressure due to doubts over the India-US trade deal. According to Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, the rupee's downside was cushioned by positive domestic markets and a weak US dollar.
IPO Market
The initial public offering (IPO) market is expected to remain active, with the launch of the ICICI Prudential AMC IPO. Additionally, two IPOs, Nephrocare Health Services and Park Medi World, will enter their third and final day of bidding.
Market Outlook
Vinod Nair, Head of Research at Geojit Investments Limited, stated that the domestic market rebounded following the Fed's expected rate cut. The decline in US 10-year yields indicates a moderation in future Foreign Institutional Investor (FII) outflows, which bolstered sentiment. The auto sector excelled due to anticipated stronger demand, while the IT sector gained traction on the prospect of increased spending.
Technical Setup
Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty 50 remained firm after an initial decline. The index faces resistance at the 21EMA on the daily timeframe, indicating an underlying bearish market structure. In the short term, 25,700 is likely to act as support, and a decisive break below this level could give bears the upper hand.
Stocks to Buy
Market experts recommend the following stocks for intraday trading: Jamna Auto, GVT&D, Grasim, Union Bank, Marico, Adani Green, and Mahindra and Mahindra. These recommendations are based on technical analysis and market trends.
- Jamna Auto: Buy at ₹125.5, with a stop loss of ₹121 and a target price of ₹134.5.
- GVT&D: Buy at ₹2998, with a stop loss of ₹2895 and a target price of ₹3204.
- Grasim: Buy at ₹2795, with a stop loss of ₹2750 and a target price of ₹2880.
- Union Bank: Buy at ₹150, with a stop loss of ₹145 and a target price of ₹158.
- Marico: Buy at ₹727, with a stop loss of ₹715 and a target price of ₹745.
- Adani Green: Buy at ₹1081, with a stop loss of ₹995 and a target price of ₹1085.
- Mahindra and Mahindra: Buy at ₹3665, with a stop loss of ₹3600 and a target price of ₹3790.
Please note that these recommendations are for educational purposes only and should not be considered as investment advice. It's essential to consult with certified experts before making any investment decisions.