The Indian stock market started the day on a positive note on Friday, December 12, with the Nifty 50 reclaiming the 26,000 mark and the Sensex jumping over 450 points to hover near 85,300. This surge comes after the US Federal Reserve cut interest rates by 25 basis points, which had a positive impact on the market.
Ajit Mishra, SVP of Research at Religare Broking, advises caution despite the market rebound. He emphasizes the importance of a sustained move above the 20-DEMA, around 25,950, to confirm further recovery. Mishra also highlights the need to track the performance of banking and IT sectors, which will be crucial for market direction.
Mishra recommends buying the following three stocks for the next one to two weeks due to their favorable technical setup:
When investing in these stocks, it's essential to keep in mind the overall market trends and risk management strategies. The rupee's fall to a record low against the US dollar is a key concern, and global cues, especially from the US markets, will continue to influence the Indian market.
Investors should position themselves selectively, considering the performance of various sectors, including private banking, auto, metals, and pharma. By doing so, they can capitalize on opportunities for short-term gains while minimizing potential risks.
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