A Day of Consolidation
After three consecutive days of gains, the Indian stock market took a breather on Thursday, closing nearly flat. The Nifty index initially saw an uptick but faced selling pressure from heavyweight stocks, leading to a range-bound movement throughout the session.
Sectoral performance was mixed, with energy and realty sectors posting gains, while FMCG and auto sectors ended in the red. Broader indices, however, managed to hold on to modest gains, ranging from 0.5% to 1%.
Cautious Approach Recommended
We maintain a cautious outlook on the Nifty index, highlighting the resistance zone between 22,300 and 22,400. We recommend continuing with a stock-specific trading approach, closely monitoring both domestic and international market cues, particularly the US markets.
Bearish Sentiment Continues
Bajaj Finance has been experiencing a corrective phase, forming higher highs and lows. Recently, it faced selling pressure near a descending trendline, slipping below its short-term moving average and trading under its previous swing low. This indicates a continuation of the bearish sentiment.
Buying Opportunity Emerges
Power-related stocks are attracting notable interest, and PFC presents a potential buying opportunity. The stock has rebounded quickly, finding support around the neckline of an inverse head and shoulders pattern, which aligns with the moving average ribbon, indicating a strong support zone. Given the recent price action and volume increase, we anticipate the price to rise, potentially reaching its previous swing high.
Uptrend Continues
POWERGRID has been experiencing a consistent uptrend accompanied by a gradual increase in trading volumes. It recently bounced upwards, finding support near its previous resistance level, which also aligns with its short-term moving average. The stock has approached its all-time high, and we anticipate this prevailing trend to continue.