Trade Setup For Thursday; Sensex, Nifty Likely To Open In Green; Q1 GDP Data In Focus

Indian market may open in green on Thursday due to buoyancy in the US markets as expectations of a dovish policy from the Federal Reserve heightened. In the early hours, Gift Nifty traded slightly up, while Asian stocks traded mixed with Japanese shares gaining marginally. Apart from global trends, in India, the GDP growth data for the April to June 2023 quarter of FY24, will also influence sentiment in domestic equities. In the previous session, Sensex and Nifty 50 settled higher with smallcap stocks outperforming.

Gift Nifty, formerly known as SGX Nifty, traded at 19,480, up by 1.5 points or 0.01% at 644 a.m. on Thursday, The index opened at 19,478.5 and traded in the range of intraday high and low of 19,487.5 to 19,436.5 respectively.

In the early trade, Asian stocks traded higher tracking positive trends of US stocks. Japan's Nikkei 225 jumped 108.29 points, however, South Korea's KOSPI index inched lower, and Australia's ASX 200 traded in green.

Further, Wall Street stocks extended their gains for the fourth consecutive day as a host of disappointing economic data minimised the probability of more rate hikes from the US Federal Reserve in the upcoming policy. Nasdaq emerged as the biggest gainer. On lower chances of rate hikes, traders carried selling of dollars as the US currency extended its losses to reach a 2-weel low of 102.97. Traders are now waiting for inflation data.

Overnight, the Dow Jones Industrial Average inched up by 37.57 points, and the S&P 500 index gained by 0.4%. While the tech-heavy Nasdaq Composite outperformed its counterparts, surging over 0.5%.

At home, Sensex ended at 65,087.25, up by 11.43 points or 0.02%, while Nifty 50 edged higher by 4.80 points or 0.02% to end at 19,347.45 on Thursday. Bank Nifty shed 263 points or 0.6%. Meanwhile, the BSE Smallcap index outperformed the broader indices with a surge of 303.51 points, and Midcap jumped significantly by 170.90 points respectively. Banking and oil stocks were top bears, on the contrary, IT, auto, consumer durables and metals were top gainers.

Thursday's Trade Guide:

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher expects the Nifty Spot Index to find support around 19,250/19,275 during Thursday's trade, while resistance is seen at 19,400/19,450. Further, the Bank Nifty spot index is likely to find support in the range of 43,800/43,850 and resistance is seen between 44,800/45,000.

Intraday Stock Picks:

Parekh has recommended 3 stocks to buy on Thursday:

- Buy SAIL at Rs 91.40 with a stop loss of Rs 85 for a target of Rs 102.

- Buy Shipping Corporation of India at Rs 128 with a stop loss of Rs 116 for a target of Rs 155.

- Buy Indus Tower at Rs 179 with a stop loss of Rs 170 for a target of Rs 205.

Also, Ajit Mishra, SVP - Technical Research, Religare Broking said, "Nifty has failed again to reclaim short term moving average i.e. 20 EMA despite positive global cues and this indicates bears are not in the mood to loosen their grip. We thus reiterate our view to maintain a negative view on the index and stay stock-specific citing the prevailing outperformance of the broader indices."

On the Nifty 50 index, Rupak De, Senior Technical analyst at LKP Securities said that the Nifty index encountered a robust resurgence of bearish momentum, leading to considerable selling pressure at elevated levels. Amidst this downturn, the addition of substantial open interest in the 19500CE options signifies that the index is poised to expire below the 19500 mark. In terms of technical levels, the index's immediate support on the downside is evident in the range of 19300-19250. A failure to sustain above this level could potentially trigger a continuation of the downward movement.

Further, on Bank Nifty, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities the index experienced a significant bearish takeover, leading to a rapid correction of 600 points from the day's high. As the index navigates this downward movement, its next significant support on the downside is positioned at 44000. This level is crucial, given the substantial open interest built up on the put side. The overall market sentiment remains bearish, with considerable resistance anticipated around the range of 44500 to 44700 levels."

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.