The Indian stock market saw a solid recovery on Friday, October 18, with both the Sensex and Nifty 50 indices bouncing back after three days of losses. The Nifty 50 closed 0.42% higher at 24,854 points, driven mainly by strong banking and auto stocks. Meanwhile, the Sensex gained 0.27%, closing at ₹81,227.
What to Expect in the Market Today
Vinod Nair, Head of Research at Geojit Financial Services, highlighted that the market is facing pressure from Foreign Portfolio Investors (FPIs) selling, lower-than-expected Q2 earnings, and high stock valuations. These factors, combined with rising geopolitical tensions and fluctuating input costs, are making it tough for companies to perform well this quarter.
Additionally, Nair noted that geopolitical risks, especially in the Middle East, have caused gold prices to reach new record highs as investors seek safer assets. Auto companies have also expressed concerns about weak festival demand, adding more pressure to the stock indices.
On a positive note, Nair mentioned that Bank Nifty recovered losses last week due to a better-than-expected start to the earnings season, particularly among large private banks. He suggested that investments in China over India could offer short-term benefits but remained optimistic about India’s long-term market prospects.
Stock Market Outlook
For the long term, Nair believes India’s market outlook remains strong, driven by growth stability and increasing capital expenditure (capex). He expects the market to remain range-bound in the short term, with a focus on large-cap stocks and sectors like agriculture, FMCG, consumption, power, digital, and infrastructure. His advice to investors is to adopt a “buy on dips” strategy for the short to medium term.
From a technical standpoint, Rupak De, Senior Technical Analyst at LKP, noted that Nifty’s sharp recovery from the 24,570 level indicates strong momentum. With a resistance level of 24,900 in sight, a decisive break above this could trigger a short-term rally. He added that as long as Nifty stays above 24,750, the trend looks positive.
Major Q2 Results Today
On Monday, around 45 companies will report their Q2 2024 earnings, including Ultratech Cement, NELCO, Bajaj Housing Finance, Jana Small Finance Bank, and Mahindra Logistics Ltd.
Expert Stock Picks for Today
Stock market experts Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, have recommended the following stocks to buy today:
1. Bata India
- Buy Price: ₹1,464.95
- Target: ₹1,568
- Stop Loss: ₹1,414
- Bata India is nearing a breakout and has strong trading volume backing it up. The stock’s RSI is at 59.82, suggesting increasing buying interest. If it can hold above ₹1,475, it may reach the ₹1,568 target soon.
2. Torrent Power
- Buy Price: ₹1,973.65
- Target: ₹2,112
- Stop Loss: ₹1,905
- Torrent Power has been forming higher highs and lows, signaling a bullish trend. If it crosses the ₹2,000 mark, a further rise to ₹2,112 is expected.
3. Reliance Industries
- Buy Price: ₹2,720
- Target: ₹2,800
- Stop Loss: ₹2,670
- Reliance Industries has strong support at ₹2,670 and looks poised for a rally. The next resistance level is at ₹2,800, making this a good buying opportunity.
4. National Aluminium Company (NALCO)
- Buy Price: ₹232
- Target: ₹250
- Stop Loss: ₹224
- NALCO is showing a bullish reversal pattern, with a potential rise to ₹250. The stock is currently holding steady at ₹232, and a target of ₹250 is achievable if this momentum continues.
5. NMDC Ltd
- Buy Price: ₹231
- Target: ₹242
- Stop Loss: ₹224
- NMDC has broken out of its recent range, and with its RSI trending upwards, it suggests strong buying momentum. A rise to ₹242 is likely in the near term.
Summary:
With a mix of global and domestic factors influencing the market, experts recommend being selective with stock picks. Focus on large-cap stocks and sectors like FMCG, consumption, and power, while looking for buying opportunities on dips. Keep an eye on key technical levels in Nifty and Bank Nifty for possible short-term rallies.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
