Indian Stock Market Declines Amid Geopolitical Tensions and Corporate Results

The Indian stock market continued its downward slide for the third consecutive session on Thursday, as the benchmark indices BSE Sensex and Nifty 50 ended in negative territory. This decline comes amid escalating geopolitical tensions in West Asia, fluctuations in oil prices, substantial foreign capital outflows following China’s recent economic stimulus announcements, and disappointing corporate earnings for the second quarter.

On Thursday, the BSE Sensex fell by 495 points, approximately 0.61 percent, closing at 81,007. Meanwhile, the Nifty 50 index declined by 221 points, or 0.89 percent, settling at 24,749.85. Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, commented on the performance, noting that “the Nifty 50 index broke the 24,900 zone, which had been acting as support for some time, slipping with a weak bias below the 24,800 level.” Parekh also forecast that the Nifty 50 index might find support at 24,600 points while facing resistance at 25,000 points.

Parekh has suggested specific buy-or-sell recommendations for investors, focusing on State Bank of India, HEG Ltd, and SeQuent Scientific Ltd. She specified, “State Bank of India: Buy at ₹800; Target at ₹840; Stop Loss at ₹790.” For HEG Ltd, her suggestion was “Buy at ₹2,572; Target at ₹2,650; Stop Loss at ₹2,290,” and for SeQuent Scientific Ltd, it was “Buy at ₹196; Target at ₹205; Stop Loss at ₹190.”

Sumeet Bagadia, Executive Director at Choice Broking, corroborated the weak sentiment in the market, highlighting a similar outlook that shows bias remaining fragile as the Nifty 50 index worsened past the crucial 50-Day Exponential Moving Average (DEMA) support around the 25,000 level. “The 50-stock index may try to retest its current crucial support and may go down towards the 24,500 mark,” Bagadia noted.

Bagadia recommended a stock-specific strategy during this volatile period, directing attention to technically promising stocks like Amines and Plasticizers, Weizmann, Palash Securities, Kanpur Plastipack, and Nalwa Sons Investments. Each was provided with a buying suggestion, target price, and stop loss.

Despite positive profit reports from major U.S. companies like Morgan Stanley and United Airlines, traders witnessed a broad market decline, with the cash market volumes on the National Stock Exchange (NSE) being 5.2% lower than the previous session. This scenario reflected an overall weaker bias on Dalal Street, with Bagadia advising investors to consider any increase during intraday trading as a relief rally unless the Nifty 50 index surpasses the 25,300 mark decisively.

Disclaimers have been included in the analyses mentioned, indicating that these are the views of individual analysts and not representative of Mint‘s editorial stance, urging investors to consult certified professionals before making investment decisions.