Indian Stock Market Outlook
The Indian stock market is expected to continue its trend-based move, with a constructive tone set by Thursday's intraday recovery. However, a strong weekend close and supportive overnight positioning are necessary to confirm any breakout-driven rally.
Global Market Trends
Global markets are showing positive signs, with US indices closing sharply higher, led by the Dow. European markets, including the DAX, CAC, and FTSE, also ended in the green. Asian markets are trading positively, contributing to the improved global tone.
Impact of Currency Pressure
The Indian rupee, currently at 90.25, is a cause for concern due to elevated imported-inflation risks and weaker dollar-adjusted returns for foreign portfolio investors. This currency pressure is adding to the cautious undertone in the market and keeping risk appetite subdued.
Expert Analysis
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment has improved, with the Nifty 50 index bouncing back strongly after breaking below the 50-DEMA support. The key index has ended near 25,900 and is facing an immediate hurdle at 26,000.
Nifty 50 Index Outlook
Parekh says, "The Nifty 50 index needs to break above 26,000 on a closing basis to bolster the bull's conviction. Once this level is breached, the index can expect further gains, with the 26,300 level acting as the near-term resistance."
Bank Nifty Index Outlook
Parekh also commented on the Bank Nifty index, saying it would need a decisive move past the 60,000 zone to establish conviction. If this level is breached, the index can expect a further upward move, with targets of 61,300 and 63,000 levels.
Stock Recommendations
Parekh recommended the following stocks for intraday trading:
- Trent: Buy at ₹4055, Target ₹4200, Stop Loss ₹3980
- Adani Green Energy: Buy at ₹1023, Target ₹1060, Stop Loss ₹1000
- Fortis Healthcare: Buy at ₹862, Target ₹900, Stop Loss ₹850
Please note that these recommendations are for educational purposes only, and investors should consult certified experts before making any investment decisions.