Stock Market Update: Nifty Predicts Gap-Up Open, Key Metrics and Stock Recommendations

Indian Stock Market Tumbles for Third Straight Session

The key benchmark indices of the Indian stock market remained under the bears' grip for the third straight session last week. The Nifty 50 index crashed 679 points in these three sessions, while the BSE Sensex nosedived over 2,600 points from Wednesday to Friday last week. The Bank Nifty index, which ended at 57,371 on Tuesday, finished at 56,089, losing nearly 1,300 points in three straight sessions.

Sectoral Performance

Among sectors, the IT index corrected sharply, shedding over 10 per cent, whereas, despite weak market sentiment, the FMCG and Energy indices rallied over 2 per cent. During the week, due to profit booking at higher levels, the market slipped below the 50-day SMA (Simple Moving Average) of 24,300/78,000, and post-breakdown, selling pressure intensified.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Gift Nifty Indicates Gap-Up Opening

Gift Nifty index today opened upside at 24,051 and extended its intraday gains further by hitting today's high of 24,135. This indicates a gap-up opening for the 50-stock index and other indices of the Indian stock market. By 7:30 AM, the index was trading more than 0.75% higher at around 24,130.

Asian Markets Trade Higher

Asian markets traded higher on Monday, with investors brushing aside fresh diplomatic tensions between the US and Iran, even as rising unrest in the Middle East kept oil prices firm.

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

Crude Oil Price Under Bulls' Radar

Following the uncertainty around the Strait of Hormuz opening and the US-Iran ceasefire talks, the WTI crude oil price is under the bulls' radar during the early morning session. By 7:45 AM, the WTI crude oil price was trading $95.75 per barrel, logging an intraday gain of around 1.45%.

Gold and Silver Prices Under Selling Pressure

Following gains in crude oil prices today, gold and silver prices came under selling pressure in early morning trading. The COMEX gold rate today is around $4,715 per ounce, logging an intraday loss of more than 0.55%. Likewise, the COMEX silver rate today is oscillating around $75.25/oz, recording an intraday loss of over 1.50%.

India VIX Falls Below 20

The volatility index of the Indian stock market rose by over 6% during the market crash on Friday. However, the index is below 20 but above the warning line 18. A positive opening on Dalal Street is expected to push the India VIX down today.

Market Experts' Outlook

Speaking on the outlook of the Nifty 50 and the Sensex today, Amol Athawale, VP — Technical Research at Kotak Securities, said that on the weekly chart, the Nifty 50 and the 30-stock index Sensex have formed a bearish candle, and on daily charts, a reversal formation has appeared, which supports further weakness from the current levels.

Stock Recommendations

Market experts — Sumeet Bagadia of Choice Broking, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, and Shiju Koothupalakkal, Senior Manager — Technical Research at Prabhudas Lilladher, recommended these eight buy-or-sell stocks for intraday trading:

1. SAIL: Buy at ₹178.5, Target ₹192, Stop Loss ₹172
2. GVT&D: Buy at ₹4598, Target ₹4920, Stop Loss ₹4437
3. Alkem Lab: Buy at ₹5235, Target ₹5500, Stop Loss ₹5100
4. Canara Bank: Buy at ₹140, Target ₹150, Stop Loss ₹135
5. HSCL: Buy at ₹566, Target ₹590, Stop Loss ₹540
6. Premiere Energies: Buy at ₹1018, Target ₹1070, Stop Loss ₹995
7. VA Tech Wabag: Buy at ₹1493, Target ₹1560, Stop Loss ₹1460
8. Cummins India: Buy at ₹5232, Target ₹5400, Stop Loss ₹5140