- The domestic benchmark indices, the Sensex and Nifty 50, started Tuesday’s trading session with modest gains, led by FMCG and PSU Bank stocks.
- The BSE Sensex opened higher by 77.76 points, or 0.11%, at the 73,973.30 level, while the Nifty 50 started off at the 22,489.75 level, up 47.10 points, or 0.21%.
- Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted the underperformance of the Indian market despite positive global cues.
Amid positive global cues, India’s Sensex and Nifty 50 indices open with modest gains. However, the market underperforms, raising concerns among investors.
Market Review and Outlook – Ruchit Jain
Ruchit Jain, Lead Research Analyst at 5paisa, noted that the Nifty 50 traded within a narrow range at the start of the week, but a lot of sector-specific momentum was seen on both sides of the trade. The market breadth was more in favor of declines, while the index ended below 22,450 with a marginal loss.
Share Market Tips Today
Jain advised traders to trade with a stock-specific approach and look for sectors/stocks outperforming. The Nifty FMCG index has seen a positive RSI divergence recently and the index is on the verge of a breakout from its consolidation.
Stocks in Focus Today – Ruchit Jain
On stocks in focus on Tuesday, Ruchit Jain recommends buying two stocks: Hindustan Unilever Ltd (HUL) and Dabur India Ltd.
Hindustan Unilever Ltd (HUL)
Ruchit stated that the FMCG stocks have gone through a corrective phase in the last few months, and the FMCG index has now been witnessing a positive RSI divergence. Thus, we expect a stock-specific pullback from this sector, and HUL has seen a lower low in price but a higher low in RSI.
Dabur India Ltd
Jain explained that the stock has been consolidating in a broad range since last few months and stock witnessed buying interest post the recent quarterly results. The RSI has given a positive crossover, and the volumes are good as the pullback is seen from the support end of the range.
Conclusion
Despite modest gains in the Sensex and Nifty 50 indices, the Indian market underperforms amid positive global cues. Traders are advised to adopt a stock-specific approach, with FMCG stocks showing potential for a pullback. Hindustan Unilever Ltd and Dabur India Ltd are recommended buys.
