Investor Advisory: Hindustan Zinc and Chennai Petroleum Recommended for Purchase by Angel One's Osho Krishan

Stock Market Plunges Following Trump's Iran Comments

The main domestic stock indices, Nifty 50 and Sensex, began the day lower on Thursday, April 2, following declines in Asian markets, after President Donald Trump announced that the U.S. would respond "extremely hard" to Iran within weeks, putting an end to hopes for a quick resolution to the conflict that has disturbed the global economy.

The Nifty 50 fell 1.31% to reach 22,383.40, while the BSE Sensex decreased by 1.19% to 72,262.05 by 9:15 IST. All 16 major sectors experienced a downturn. Major financial and banking stocks each dropped by 1.6%. The broader small-cap and mid-cap indices declined by 1.5% and 1.2%, respectively.

Other Asian markets fell by 2% after Trump indicated that Washington's "core strategic objectives" in the Iran conflict were nearing fulfillment. However, he did not clarify when the conflict might come to an end. Brent crude increased by 4% to approximately $105 per barrel.

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Foreign portfolio investors (FPI) sold off shares totaling 83.31 billion rupees ($893.83 million) on Wednesday, while domestic institutional investors (DII) purchased stocks worth 71.72 billion rupees, as per NSE's provisional data.

During the previous trading session, the Nifty 50 and Sensex indexes rose by around 1.6% each, following a global rally driven by hopes of a de-escalation in the Iran conflict.

According to Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One, the Nifty 50 index opened on a strong footing, registering a sharp gap-up of nearly 550 points, largely driven by encouraging global cues stemming from positive developments on the US-Iran geopolitical front. However, the initial optimism failed to sustain momentum, as the absence of follow through buying led to a gradual decline from intraday highs.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Despite this cooling-off phase, the Nifty 50 index managed to close with a solid gain of over 1.56%, ending marginally below the 22,700 zone. After a notably weak performance in March, the April series has commenced on a constructive note, offering some respite to market participants.

From a technical standpoint, the index has been consolidating within a defined range of 22,400 to 23,500 over the past few sessions. The presence of multiple gap zones within this band suggests the formation of a ‘common gap’ structure, typically indicative of a consolidation phase following a sharp decline. Momentum indicators also point to an oversold condition, which may support a near-term recovery, provided global sentiments remain favourable.

Key support is currently placed in the 22,500-22,400 zone, while immediate resistance is seen near the psychological 23,000 mark. A stronger barrier persists around 23,500, marking previous week’s high. A decisive breakout above this level would be essential to confirm a higher top formation and signal a more sustained upward move.

Osho Krishan of Angel One recommended two stocks to buy on Thursday - Hindustan Zinc Ltd and Chennai Petroleum Corporation Ltd.

Hindustan Zinc Ltd

Hindustan Zinc share price has undergone a notable correction over the past month, with prices retracing toward the 200-DSMA and momentum indicators entering oversold territory. Recent price action suggests stabilization at lower levels, indicating emerging buying interest on the daily chart. Furthermore, the 14-day RSI has exhibited a positive divergence, reinforcing the likelihood of a bullish reversal.

This technical setup highlights a favourable risk-reward proposition and suggests potential for a gradual recovery in the near term. Hence, we recommend a BUY in Hindustan Zinc around ₹520-515 with a Stop Loss of ₹488 and a Target of ₹558-568.

Chennai Petroleum Corporation Ltd

Chennai Petroleum share price has been trading firmly above its key EMAs, demonstrating relative outperformance against the broader market. The prevailing technical structure remains constructive, indicating potential for continued upward momentum. The stock is also approaching a critical resistance level, and a decisive breakout could unlock further upside, attracting renewed buying interest.

Meanwhile, the confluence of nearby EMAs is expected to provide strong support, effectively cushioning any short-term corrections in the sessions ahead. Hence, we recommend a BUY in Chennai Petroleum around ₹1,010-1,000 with a Stop Loss of ₹940 and a Target of ₹1,080-1,100.