Analyst Suggests Buying Time Technoplast and Gujarat Ambuja Exports Shares

Indian Stock Market Sees Significant Selloff on Thursday

The Indian stock market experienced a sharp decline in morning trade on Thursday, April 30, with the benchmarks, the Sensex and the Nifty 50, plummeting by more than 1%. The 30-share pack Sensex plummeted by 1,150 points, or 1.5%, to an intraday low of 76,349, while the Nifty 50 dropped by over 350 points, or 1.6%, to a day low of 23,801.

As a result of this selloff, investors lost almost ₹9 lakh crore as the market capitalization of BSE-listed firms fell to ₹460 lakh crore from ₹469 lakh crore in the previous session. The rupee also fell past 95 per US dollar to a record low, dragged down by rising oil costs and the US Federal Reserve's hawkish stance. Brent crude rose to a four-year high of $126 per barrel after Axios reported that the US military plans to inform President Donald Trump on fresh options against Iran.

On Wednesday, Trump met with oil companies to discuss how to offset the impact of a possible months-long blockade of Iran's ports, raising concerns about long-term supply disruptions. Higher oil prices pose inflation risks for India, the world's third-largest crude importer, as well as endangering economic growth and business profits.

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Market Outlook

Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities, notes that the Nifty 50 slipped into weakness on the backdrop of looming West-Asia crises and rise in International Crude Oil prices on Thursday. After opening on a downside gap of 170 points, the market slipped into further weakness soon after the opening. The recovery attempt of early part has failed and Nifty 50 is currently placed at the lows.

Based on technical analysis, HDFC Securities recommends buying Time Technoplast at ₹190.50 with a target price of ₹203 and a stoploss of ₹184, with a timeframe of 1 week. Time Technoplast share price has bounced back on Thursday, forming a higher bottom at ₹182 levels and attempting to regain the hurdle of 200-day EMA. The volume pattern and RSI also show positive indications.

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Similarly, HDFC Securities recommends buying Gujarat Ambuja Exports at ₹154.50 with a target price of ₹164 and a stoploss of ₹150, with a timeframe of 1 week. Gujarat Ambuja Exports share price has been moving in a broader high-low range of ₹145-160 levels in the last few weeks, with the supports of 10/20-day EMA held during the up move. Bullish chart patterns like higher tops and bottoms are also observed on the daily timeframe chart, with daily 14-period RSI showing bullish indications.