Market Update: Ruchit Jain Recommends Buying Infosys and KPIT Technologies Amid Ongoing Selling Pressure

On Tuesday, India’s stock market faced ongoing selling pressure, with the Nifty 50 and Sensex indices following a downward trend seen in other Asian markets. Investors are eagerly waiting for local quarterly earnings announcements and the Reserve Bank of India’s upcoming monetary policy decision.

The Nifty 50 index opened at 24,832.20 points, gaining 36 points, while the Sensex started at 80,826.56 points, down by 223.44 points. Analysts suggest that geopolitical tensions and the shift of foreign investments from India to China are contributing to the selling pressure on Indian stocks.

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Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that the market weakness is a reaction to rising geopolitical tensions in the Middle East, significant selling by foreign portfolio investors (FPI), and concerns over today’s election results. The Nifty 50 has dropped 5.6% from its peak mainly due to ongoing large-scale FPI selling in the last six trading days.

In contrast, while the Hang Seng index soared by 32% over the past month and the Shanghai composite gained 8% in a single day, the Indian market has remained relatively stable despite its weakness.

Market Review and Outlook by Ruchit Jain, Lead Research Analyst at 5paisa

The Nifty 50 continued its downward trend at the start of the week. Although it opened flat, selling pressure pushed it below the 24,800 mark by the end of the day.

After recent highs, the Nifty 50 has retraced 61.8% of its previous rise from 23,900 to 26,277. The 89-day Exponential Moving Average (EMA) is around 24,525, and the Relative Strength Index (RSI) on shorter time frames is in the oversold zone, suggesting a potential pullback from the support levels of 24,800-24,525.

However, there are currently no signs that the market will find a bottom here, and any upward movement should be seen as a temporary pullback. Traders should monitor market movements based on data and price action, especially in light of global news and the RBI policy meeting this week. The India VIX is gradually rising, indicating possible increased volatility in the short term.

Stocks to Buy or Sell Today – Recommendations by Ruchit Jain

Ruchit Jain recommends buying Infosys Ltd and KPIT Technologies Ltd today.

Infosys Ltd:

The stock has been consolidating in a range for the past few weeks, showing a time-wise correction within an uptrend. The 40-day EMA has acted as support during this consolidation, and the RSI has given a positive signal after correcting from the overbought zone. Traders are advised to buy Infosys in the range of ₹1,930-₹1,920, aiming for a target of ₹2,070. Due to market volatility, a strict stop-loss should be set below ₹1,850.

KPIT Technologies Ltd:

This stock has also corrected from its highs along with the broader market but is currently trading near its 100-day EMA support. The RSI has shown a positive crossover, suggesting favorable risk-reward conditions for buying. Traders can look to buy KPIT in the range of ₹1,705-₹1,695, with a potential target of around ₹1,850. A stop-loss for short positions should be placed below ₹1,620.