Nifty 50 on 29 November: Recap
After threatening to head to a new low, the markets made a quick recovery on the first day of December expiry, keeping bullish hopes alive. While the trends continue to discover new ways to survive, the markets are looking at some global cues to keep the momentum alive since there are not many positive cues on the domestic front. India’s GDP growth slowed more than expected to a seven-quarter low of 5.4% for the second quarter of FY25 compared with 6.7% in the first quarter. After some large-scale volatility on the expiry day, trends indicate that there are going to be some challenges ahead.
Indian stock markets: Way forward
After witnessing two months of pain, the trends are attempting to revive from lower levels. As we head into the next series, some bit of optimism continues to remain. On the monthly expiry, a sharp decline filled the gap on the Nifty daily charts to test 23900 levels to threaten the sentiment. However, a quick turnaround on Friday led to sustenance of the sentiment towards the close of the day, highlighting that one can expect the trends to continue. Since we are stepping out of deep oversold levels the resistance around 24500 will be the nearest levels to watch out for. Stock-specific action is expected to persist as the markets continue to reward positive newsflows as well as strong Q2 earnings numbers.
Also Read: FII selling crosses ₹2 trillion in FY25, may cross FY22 record
Three stocks to buy, recommended by NeoTrader’s Raja Venkatraman:
• Aster DM Healthcare: Buy at ₹500, stop ₹480, target ₹530
Backed by positive news of a merger with Blackstone-backed Care Hospitals, the company has now entered into the list of top three players in India in this segment. The prices have had some strong tailwinds post consolidating in the range of ₹420-440 since August 2024.
• Skipper Ltd (India): Buy at ₹580, stop ₹557, target ₹635
Skipper, a midcap company in the transmission towers industry, has reached an all-time high recently. The stock has outperformed the sector and is holding the higher levels forming rounding patterns indicating a bullish trend.
• Thirumalai Chemicals: Buy at ₹376 and dips to ₹350, stop ₹340, target ₹425
A small midcap stock from the chemical industry, it has been doing well and its recent Q2 numbers have caught attention. The move in the last one month has been a series of higher lows until Friday where it managed to clear important value area resistance around ₹349.
Raja Venkatraman is co-founder, NeoTrader.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Also Read: How to manage emotional biases during volatile markets?