Indian markets fell for the third consecutive trading session. On Wednesday, Nifty fell 191 points to close at 23,996, while Sensex fell 715 points to 76,775. During intraday trading, Nifty touched a low of 23,961 and a high of 24,150. Closing below 24,000 level is a big blow from both technical and psychological point of view. The market may fall further in the short term.
Today, out of 30 Sensex stocks, 8 closed in the green and 22 in the red. Hindustan Unilever, PowerGrid and NTPC were the top gainers, rising up to 0.75%. On the other hand, IndiGo, Axis Bank, Infosys and SBI were the top gainers, falling up to 3.7%.
How did the market open this morning?
This morning Nifty opened 43 points lower at 24,144 and Sensex opened 206 points lower at 77,263. Apart from this, Bank Nifty opened 116 points lower at 57,718. Due to the fall in the market, investors suffered a loss of about ₹ 1 lakh crore in early trading. The market has been falling continuously for the last two sessions; On Tuesday, Nifty fell 51 points to 24,187 and Sensex fell 238 points to 77,470.
Yesterday, the US market witnessed a rally due to buying in chip stocks. On Tuesday, the Dow closed 385 points higher and the Nasdaq closed 329 points higher. The effect of the rally in US chip stocks is clearly visible in other Asian markets. Japan’s Nikkei rose 1.8%, while Korea’s KOSPI rose 5.5%. Globally, chip stocks are seeing activity again. Which stocks to focus on today?
Indian IT stocks may come under pressure today due to the rise in chip stocks. However, stocks of data center and power companies may see a significant rise. Stocks like Hitachi Energy, GE Vernova, Cummins and ABB have been looking sluggish for several days; Today there is a chance of recovery and rise in these stocks. From a trading perspective, sell IT stocks and buy AI-related stocks today.
Bank stocks are under pressure
Rise in crude oil prices is negative for banking and rate-sensitive stocks
Bank Nifty is struggling to stay above 58,000 level
In this situation, the 200-DMA near the 57,300 level acts as a major support.
Avoid buying rate-sensitive stocks until crude oil prices go down
ICICI Bank is top pick among FIIs in banking sector
HDFC Bank’s results were not bad, but ICICI Bank’s results were excellent.
Because of this, FIIs are selling HDFC Bank and buying ICICI Bank
IT index near main resistance range
IT index remained weak for the second consecutive day, falling 0.6% to close at 28,984
Yesterday, for the third consecutive day, it crossed the 100-DMA (29,202) during intraday trading and moved higher
However, it closed below 100-DMA on all three days
IT Index is now near the main resistance range 29,600–30,000
It touched this range four times between April 24 and May 19, but closed below it.
After falling 18% from its high on June 2, it reached a low of 25,699 on July 1.
It then made a rapid recovery, and is now back in the resistance range.
It remained near 29,500 on both days this week.
AI stocks surged across the world yesterday; This is a big negative for the IT sector today.
Buying now is risky.
Consider profit-booking in Rs 29,600–30,000 range.
If it closes above 30,250, there will be a big breakout; Then consider a new purchase.