Angel One Analyst Suggests Buying Shares in Chennai Petroleum Corp and Bharti Airtel

Stock Market Today: Negative Sentiment Overshadows Corporate Earnings

The domestic benchmark indices, Nifty 50 and Sensex, began Thursday, April 30, on a negative note, as a significant increase in oil prices weakened investor sentiment and overshadowed the positive outlook from corporate earnings. The Nifty 50 fell by 1.16% to 23,898.70, while the BSE Sensex decreased by 1.17% to 76,578.87 as of 9:23 IST.

The market's decline was widespread, with all 16 sector indices experiencing losses. The overall market also declined, as mid-cap stocks dropped by 1.2% and small-cap stocks decreased by 0.7%. Oil prices played a significant role in dampening sentiment. Brent crude prices surged to approximately $123 per barrel following Donald Trump's discussions with oil companies regarding potential strategies to mitigate the impact of a prolonged disruption in Iranian port operations. These conversations intensified worries about supply constraints that could persist for months.

For India, the world's third-largest crude importer, rising oil prices raise the risk of higher inflation while also putting pressure on growth and corporate profitability. Meanwhile, the Federal Reserve kept interest rates unchanged overnight. However, escalating inflation concerns tied to the Iran conflict have led markets to dial back expectations of any rate cuts in 2026.

Read also: Expert Portfolio Manager Raja Venkatraman Names Top Investment Picks for June 4

Market Outlook

The session began on a strong note, with the Nifty 50 extending early gains and moving above the 24,300 level during the first half. However, the absence of sustained buying interest in the latter half triggered profit booking, leading to a partial erosion of gains. Despite this, the index maintained positive momentum and concluded the session higher, registering a gain of approximately 0.76% to close at 24,178.

On the daily chart, price action remained confined within two key short-term moving averages, with the 20 DEMA providing support on the downside and the 50 DEMA acting as immediate resistance on the upside. Despite this range-bound movement, the overall undertone continues to remain positive. However, the 24,300-24,350 zone persists as a near-term hurdle. A decisive breakout above this range could trigger upward momentum, potentially driving prices towards last week's high near 24,600 and extending gains further.

Read also: MarketSmith India's 4 June Stock Recommendations

Stocks to Buy

We recommend two stocks to buy on Thursday:

• Chennai Petroleum Corporation Ltd: Shares have been trading firmly above its key EMAs, post the resurgence from lows of 800 subzone in recent period. The prevailing technical structure remains constructive, indicating potential for continued upward momentum. We recommend a BUY in Chennai Petroleum Corporation around ₹1,120-1,110 with a Stop Loss of ₹1,020 and a Target of ₹1,240-1,275.
• Bharti Airtel Ltd: Shares have undergone a notable recovery in the week, with prices retracing above its 20 and 50-DEMA and momentum indicators turning bullish. Recent price action suggests stabilization at lower levels, indicating emerging buying interest on the daily chart. We recommend a BUY in Bharti Airtel around ₹1,870-1,860 with a Stop Loss of ₹1,780 and a Target of ₹1,980-2,040.

Traders are advised to closely monitor these key levels and align their strategies accordingly. In light of ongoing geopolitical tensions and the extended weekend ahead, maintaining lighter overnight positions would be prudent. Markets could experience heightened volatility, particularly in response to developments surrounding key state election results and any emerging global cues during the break.