Market Overview:
On Monday, August 12, the Nifty 50, the benchmark index of the Indian stock market, opened 0.2% lower at 24,320.05, compared to its previous close of 24,367.50. The dip comes amid mixed global cues. The index had surged over 1% in the previous session but ended 1.4% lower on a weekly basis, as investors booked profits due to concerns over elevated valuations, geopolitical tensions, unimpressive Q1 earnings, and an economic slowdown in the US.
Short-Term Market Outlook:
Experts suggest that both global and domestic factors will continue to influence the Indian stock market. “Global as well as domestic factors are likely to influence the market this week. Globally, stock markets will keenly watch the US consumer data and core CPI numbers, which will indicate the strength or weakness of the US economy. The stability in the yen indicates that the fears surrounding the yen carry trade are behind us. Therefore, the likely trends in the US macros and Fed rate cut expectations will influence markets much more than any other factors,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Despite some anticipated short-term volatility, experts remain optimistic about the Indian market’s medium- and long-term prospects. Investors are advised to focus on quality stocks and consider those with favorable technical indicators for short-term gains.
Stocks to Watch:
State Bank of India (SBI)
- Previous Close: ₹805
- Buying Range: ₹815-825
- Target Price: ₹900
- Stop Loss: ₹780
- Upside Potential: 11.8%
SBI has shown a bullish pattern at its 100-day simple moving average (SMA). Technical indicators suggest a strong potential for upward movement, making it an attractive buy within the ₹815-825 range.
ICICI Bank
- Previous Close: ₹1,165
- Buying Range: ₹1,165-1,175
- Target Price: ₹1,250
- Stop Loss: ₹1,130
- Upside Potential: 7.3%
A bullish BAT pattern has formed on ICICI Bank’s daily chart within the support zone of ₹1,165-1,175. Analysts recommend a buy in this range, with a target price of ₹1,250 and a stop loss near ₹1,130.
Steel Authority of India (SAIL)
- Previous Close: ₹129.35
- Buying Range: ₹125-130
- Target Price: ₹150
- Stop Loss: ₹116
- Upside Potential: 16%
SAIL has experienced significant selling pressure after reaching a peak of ₹175 in May 2024. The stock is currently testing its 200-day SMA, a critical technical level. Given the technical confluence and previous breakout range, SAIL is considered attractive for a potential rebound.
Borosil
- Previous Close: ₹400
- Buying Range: Above ₹400
- Target Price: ₹435-450
- Stop Loss: ₹380
- Upside Potential: 8.75% to 12.5%
Borosil has recently broken out of a falling parallel channel with increased trading volume. If the stock closes above ₹400, it could reach short-term targets of ₹435 and ₹450. Immediate support is at ₹380.
Conclusion:
Investors are advised to keep an eye on these stocks based on their current technical indicators and potential for growth in the next 3-4 weeks. With global and domestic factors at play, focusing on quality stocks and staying updated with market trends will be key to navigating the current volatility.
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