Stock market today: The Indian stock markets opened significantly lower on Thursday, experiencing a substantial sell-off following US President Donald Trump’s declaration of a 25 percent tariff on goods from India, alongside penalties on purchases of Russian crude oil and defense supplies.
This announcement has sparked widespread alarm among investors and raised concerns about a potential decline in exports and overall business sentiment.
At the opening bell, the Nifty 50 index fell to 24,642.25, which represents a decrease of 212.80 points or 0.86 percent. Similarly, the BSE Sensex also saw a notable drop, starting at 80,695.50 after losing 786.36 points or 0.97 percent.
Market analysts suggest that while the consequences of the US tariff announcement are likely to be short-lived, India must take prompt measures to stimulate domestic consumption, as its exports will face challenges. This situation could negatively affect business confidence and slow down economic growth.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The buying momentum observed after the formation of a ‘bullish engulfing’ candlestick in the preceding session indicates a constructive outlook. However, the significance of key resistance levels remains critical. Rather than achieving stabilization, the Nifty 50 index continues to demonstrate tentativeness and has failed to surpass the crucial threshold of 24,930-24,950, which encompasses both the 50-DEMA and the 61.80% Fibonacci retracement.
At present, this area serves as an intermediate obstacle, followed by a substantial resistance at the bearish gap near the psychological level of 25,000. Hence, until these levels are authoritatively surpassed, one must refrain from complacent long bets. On the contrary, the level of support has shown a slight uplift, with 24,750-24,700 expected to provide a buffer against intraday fluctuations. Furthermore, the recent swing low of 24,600 is anticipated to be regarded as a significant support level on the expiry day of the July contract.
Going forward, it is anticipated that volatility might increase on the day of the monthly contract expiration; therefore, it is essential to adopt a cautious approach with proper risk management. Furthermore, it is imperative to closely monitor the overnight developments related to the FOMC outcome, as these may serve as a significant catalyst in influencing the interim trend within our markets.
Stocks To Buy on Thursday- Osho Krishan
On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks – Exide Industries Ltd, and Ipca Laboratories Ltd.
Exide Industries Ltd
Exide Industries has experienced significant momentum in recent trading sessions, marked by a breakout from a ‘Symmetrical Triangle’ pattern on the daily chart. This breakout has been accompanied by a notable increase in trading volume and a positive crossover in the MACD, which is positioned above its signal line. These indicators collectively suggest a bullish outlook for the stock.
Hence, we recommend to BUY Exide Industries around ₹385, keeping a stop loss at ₹370 for a potential Target of ₹410-415.
Ipca Laboratories Ltd
Ipca Laboratories has demonstrated a consolidation breakout and a subsequent retest in the recent trading sessions. The stock remains positioned well above all significant EMAs and has surpassed the 200-DSMA on the daily chart. This recent momentum has been accompanied by an increase in trading volumes, indicating a positive outlook in the charts. The technical indicators are in strong alignment with the price movement, suggesting that the upward trend is likely to persist.
Hence, we recommend to BUY Ipca Laboratories around ₹1,510-1,500, keeping a stop loss at ₹1,420 for a potential Target of ₹1,620-1,640.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
