Stock market today: The key domestic indices, Nifty 50 and Sensex, fell on Monday as weak investor sentiment persisted due to elevated stock valuations, lackluster corporate earnings, and uncertainties in global trade.
The Nifty 50 dropped by 0.12% to 22,901 at 14:18 IST, while the BSE Sensex decreased by 0.11% to 75,860.43. Analysts noted that the market downturn is driven by ongoing sales from foreign investors, with disappointing corporate earnings being the primary factor underlying the sell-off.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that signs of an earnings recovery and a declining dollar are needed to change the current negative trend in the market. He believes this may occur soon. India’s macroeconomic indicators are strong, and both growth and earnings recovery are anticipated.
Inflation in the US is expected to rise due to the Trump tariffs, prompting a hawkish response from the Federal Reserve, which could lead to a decline in both US markets and the dollar. While this might happen, the timing remains uncertain.
Market Views – Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities
Nifty 50
Nifty 50 is in continuation of a downtrend as it has been trading below all its important moving averages. During last session of the week, Nifty 50 found support near 22,750-22,800 and recovered more than 180 points. If 22,750 holds then it would turn out to be bullish triple bottom formation on the charts.
Sustainable level Below 22,750, Nifty 50 could slide down to the next support of 22,460, which happens to be 76.4% fibonacci retracement of the entire rise seen from 21,281(4 th June 2024 Low) to 26,277(Sep 2024 High). On the higher side, immediate resistance for Nifty 50 is seen at 23,235. Far resistance for
Nifty 50 is seen in the band of 23500-23600 where downward sloping trend line, 50 and 200 days EMAs coincides on the daily charts. Current month is the fifth consecutive month of fall in Nifty 50. In history Nifty 50 has never fallen more than five months since inception. This raises the probability of the recovery in the coming months. Percentage of stocks above 200 DMA in NSE500 universe has reached to 14%. Historically major down trends have seen bottom formation when this number reaches the extreme oversold zone of 11% to 13%. As per this data we can say that current reading is on the verge of touching the extreme zone and any time soon, markets could register recovery.
Technical Picks: Stocks to buy in the near-term
Buy Prestige Estate(1227) | Target Rs. 1265 | Stop-loss ₹1210
On 13 th Feb 2025, Prestige Estate formed inverted hammer candlestick pattern on the daily chart, which indicates probable bullish trend reversal. Oscillators have turned oversold on daily and weekly time frame.
Sell Cyient (1426): | Target Rs. 1380 | Stop-loss ₹1445
Cyient share price has broken down below bearish “flag” pattern on the daily chart. Midcap IT stocks have started underperforming and looking weak on the charts. Indicators and oscillators have turned bearish on the daily chart.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
