Trade Setup Thursday: Key Factors To Influence Sensex, Nifty; BHEL, NMDC Among Stocks To Buy

Indian market may open in a narrow range on Thursday after dovish hopes were crushed in the FOMC minutes of the meeting. The US Federal Reserve has shown a cautious tone with inflation expected to remain elevated ahead. However, Wall Street gained overnight ahead of the Thanksgiving holidays with 10-year yields falling lowest in two months. Asian markets ended in red on Wednesday. While Sensex and Nifty after swinging between gains and losses settled in green.

Currently, Gift Nifty trades in green, ranging from 19,923.0 to 19,760.

For a fresh upside moment, the Nifty 50 is required to breakthrough 19,850 hurdles, which could propel the benchmark for 20,200 levels as well. However, the support is seen between 19,400 and 19,500 on Thursday. The US market will be closed on this day followed by a half-day on Friday, hence, its influence would be minimalistic on broader markets. Asian shares may gain traction during Thursday's trade.

On November 22nd, Sensex crossed its psychological mark of 66,000 and ended at 66,023.24 up by 92.47 points or 0.14%. Meanwhile, Nifty 50 crossed 19,800 levels and finished at 19,811.85 up by 28.45 points or 0.14%. However, Bank Nifty was under pressure at 43,449.60 down by 239.55 points or 0.55%.

Vinod Nair, Head of Research at Geojit Financial Services said, "Despite FED adopting a cautious stance in its minutes and refraining from indicating a rate cut, the market recovered from the day's correction and ended with mild gain. On the other hand, the broad market witnessed some profit booking as investors' focus shifted to the primary market, marked by a set of IPOs scheduled for this week. However, the undercurrent is positive, with a cooling of inflation and an easing US bond yield supporting a short- to medium-term rally."

Meanwhile, Prashanth Tapse, Research Analyst, Sr VP Research, Mehta Equities said that markets exhibited some volatility in early trades and turned range bound with a positive bias for the rest of the trading session. Investors are following global markets which are mostly sluggish with a mixed bias. Due to a lack of fresh positive triggers, investors are trading cautiously and taking selective bets. He added, "Technically, Nifty needs to reclaim the 19889 mark for fresh upside, while the support is placed at the 19471 mark."

Giving further details on Nifty, Rupak De, Senior Technical analyst at LKP Securities said, the Nifty traded sideways for most of the session except for the last hour, during which it recovered from the day's low. The overall sentiment remains positive as the index has held above the crucial support level of 19,500. Resistance is positioned at 19,850 on the higher end; a breakthrough could potentially propel the Nifty towards the 20,200 mark"

Overall, Siddhartha Khemka, Head - of Retail Research, Motilal Oswal Financial Services said, "The market is likely to remain lacklustre and consolidate in a range in the absence of any major events, and start of the holiday season. The US market will remain closed on Thursday and half a day on Friday on account of Thanksgiving. While the Indian market will be closed on Monday."

Further, Ajit Mishra, SVP - Technical Research, Religare Broking said, "The move in the index was largely in continuation to the prevailing trend wherein weakness in banking continued to weigh on the sentiment and buying in other heavyweights capped the damage. Amid all the choppiness, we reiterate our positive view and suggest preferring sectors other than banking for long trades."

On Bank Nifty, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, "The Bank Nifty index experienced persistent selling pressure, resulting in a decline of 0.52%, accompanied by significant volumes. However, the index successfully maintained the crucial support zone of 43,300-43,200, and a breach below this level could pave the way for further downside. On the upside, immediate resistance is positioned at 43,600-43,700, and a breakthrough above this range is expected to initiate moves toward the 44,000 level, where the highest open interest is concentrated on the call side."

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher has recommended buying in 3 stocks on Thursday. These are:

- BUY BHEL at 141 stoploss 138 Target 150

- BUY NMDC at 171.50 stoploss 168 Target 180

- BUY GUJ IND POWER at 159.55 stoploss 156 Target 170

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor 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.