Reliance Industries' solid support kept key indices from seeing sharp drops on January 8. Rising crude prices caused oil and gas stocks to soar, but the IT sector's backing and the ITC share comeback helped the indices recover and close the session flat.
Indian Stock Market: During Wednesday's trading session, the leading indices managed to avoid yet another major decline thanks to strong support from heavyweights, especially Reliance Industries.Rising crude oil prices today caused the entire pack of oil and gas equities to shine, raising hopes that these companies' margins will be boosted. Indian markets managed to withstand adverse global cues, including an overnight sell-off in US tech companies and worries about a possible postponement of the US Fed's rate drop in 2025.
Notwithstanding the pessimistic atmosphere, the rise in IT equities, a robust recovery in ITC shares, and gains in banking stocks propelled this recovery, which assisted the indices in recovering from early losses to close the session flat.
However, the severe selling pressure caused the broader market to end the session in the red, preventing them from continuing their winning rise.
At 23,688, the Nifty 50 closed the session with a slight decline of 0.08%. The index recovered 192 points, or 0.81%, from the day's low. Similarly, the Sensex ended the session with a slight decline of 0.06% after rising 666 points, or 0.86%, from the day's low.
Reliance shares record their largest one-day rise in more than six weeks.
As brokerages became optimistic on the company following a 22.40% correction over the previous six months, shares of Reliance Industries ended the day up 2% at 1,265 apiece, the largest intraday increase since mid-November.
While keeping its 'buy' recommendation, international firm Jefferies increased its target price for the stock from ₹1295 to ₹1950 per share. According to the report, the stock is now valued at its lowest point since the COVID-19 pandemic. The firm predicted slower earnings growth in FY25 and emphasized medium-term development hurdles, especially in the Retail industry.
Bernstein, meanwhile, set a target price of ₹1,520 and kept its 'outperform' rating on the company. The brokerage anticipates a recovery cycle in 2025.
However, the severe selling pressure caused the broader market to end the session in the red, preventing them from continuing their winning rise.
At 23,688, the Nifty 50 closed the session with a slight decline of 0.08%. The index recovered 192 points, or 0.81%, from the day's low. Similarly, the Sensex ended the session with a slight decline of 0.06% after rising 666 points, or 0.86%, from the day's low.
Reliance shares record their largest one-day rise in more than six weeks.
As brokerages became optimistic on the company following a 22.40% correction over the previous six months, shares of Reliance Industries ended the day up 2% at 1,265 apiece, the largest intraday increase since mid-November.
While keeping its 'buy' recommendation, international firm Jefferies increased its target price for the stock from ₹1295 to ₹1950 per share. According to the report, the stock is now valued at its lowest point since the COVID-19 pandemic. The firm predicted slower earnings growth in FY25 and emphasized medium-term development hurdles, especially in the Retail industry.
Bernstein, meanwhile, set a target price of ₹1,520 and kept its 'outperform' rating on the company. The brokerage anticipates a recovery cycle in 2025.
Nifty 50: Important benchmarks and patterns
According to Vatsal Bhuva, LKP Securities' technical analyst, "The Nifty index is currently trading between 23,500 and 24200. It strengthened the 23,500-support level on Wednesday by forming a hammer candlestick on the daily chart and finishing close to its 200-day EMA.
"The index must either close below 23,500, which may increase selling pressure, or hold above 24,000 to open the door for a possible rally toward 24,500 in order to make a clear move. To determine the index's next trend, it is imperative to keep an eye on these critical levels," Vatsal continued.
"Technically, following an intraday correction in the early morning hours, the market found support near 23,500/77,500 and recovered sharply, recovering over 175/600 points from its lowest level of the day," stated Shrikant Chouhan, Head of Equity Research at Kotak Securities. We think the pullback pattern is likely to last as long as the market is trading over 23,500/77,500. On the plus side, it might recover to about 23,800/78,500.
The index might rise to the 200-day Simple Moving Average (SMA) around 23,925/78,900 if more increases materialize. However, mood may shift below 23500/77500; traders may decide to sell their long holdings below that level, according to Shrikant.
According to Vatsal Bhuva, LKP Securities' technical analyst, "The Nifty index is currently trading between 23,500 and 24200. It strengthened the 23,500-support level on Wednesday by forming a hammer candlestick on the daily chart and finishing close to its 200-day EMA.
"The index must either close below 23,500, which may increase selling pressure, or hold above 24,000 to open the door for a possible rally toward 24,500 in order to make a clear move. To determine the index's next trend, it is imperative to keep an eye on these critical levels," Vatsal continued.
"Technically, following an intraday correction in the early morning hours, the market found support near 23,500/77,500 and recovered sharply, recovering over 175/600 points from its lowest level of the day," stated Shrikant Chouhan, Head of Equity Research at Kotak Securities. We think the pullback pattern is likely to last as long as the market is trading over 23,500/77,500. On the plus side, it might recover to about 23,800/78,500.
The index might rise to the 200-day Simple Moving Average (SMA) around 23,925/78,900 if more increases materialize. However, mood may shift below 23500/77500; traders may decide to sell their long holdings below that level, according to Shrikant.
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