India’s Stock Markets: A Delicate Balance Amid Global Pressures and Domestic Sentiments
Day Trading Insight: Share List: On Monday, India’s stock markets are expected to begin with caution. Global indicators are experiencing stress, primarily due to the 10-year Treasury yield surpassing the 5% mark. In the forthcoming week, market participants will keenly observe Q2 FY24 earnings, festive season demand, US GDP data, and the flow of foreign funds.
However, it’s not all smooth sailing. The rising bond yields, fluctuations in crude oil prices, and volatility in precious metals are not painting a promising picture for equities. Early trading witnessed the GIFT Nifty trading in the red, oscillating between 19,573 and 19,443.5 points.
Yet, there might be a silver lining. Jerome Powell, the chair of the US Federal Reserve, hinted at a possible pause in interest rate hikes, which can provide some support to the markets. Powell expressed satisfaction with the latest drop in the CPI inflation during his speech on Friday.
Domestically, there are anticipations of profit-booking in the Indian equity market, keeping the sentiments volatile. The resistance for NIFTY-50 is likely to be at 19,800 points, but there’s a potential for a slip within the range of 19,300 to 19,500 points. On October 20th, the Sensex closed at 65,397.62 points, down by 231.62 points or 0.35%. The NIFTY-50 also saw a decline, closing at 19,542.65, down by 82.05 points or 0.42%. Bank Nifty, too, wrapped up at 43,723.05 points, down by 31.45 points or 0.07%.
Technical analyst from Prabhudas Lilladher, Shiju Kuthupallakkal, provides insights for the trading day. He believes the Nifty spot index will find support between 19,400 to 19,350 points, while resistance might be seen between 19,700 to 19,750 points. For Bank Nifty, Kuthupallakkal foresees support levels ranging from 43,400 to 43,350 points, with resistance around 44,000 to 44,050 points.
He also recommended three stocks for intraday trading on Monday:
- Colgate Palmolive: Buy at ₹2110.75 with a target price of ₹2200 and a stop loss at ₹2070.
- Berger Paints: Buy at ₹584.25 with a target price of ₹617 and a stop loss at ₹574.
- Torrent Power: Buy at ₹735.40 with a target price of ₹780 and a stop loss at ₹724.
In the current scenario, both global and domestic factors play a crucial role in dictating the stock market’s direction. Investors are advised to keep a close watch and act judiciously.
