- Indian benchmark indices, the Sensex and Nifty 50, broke a four-day losing streak on Friday, bolstered by market heavyweights Reliance Industries, ITC, and Bharti Airtel, and positive overseas trends.
- The BSE Sensex closed higher by 260.30 points or 0.36% at 72,664.47 level, while the Nifty 50 closed at 22,055.20 level, up 97.70 points or 0.44%. The India VIX was at 18.60, up 2.20% for the day.
- Analysts noted buying activity in the Nifty 50 after four days of losses, with value and bargain seeking being the dominant themes.
Indian stock market indices rebounded on Friday, driven by gains in key stocks and positive global cues. The Sensex and Nifty 50 ended their four-day losing streak, offering some relief to investors.
Market Influencers
Three key factors contributed to the market’s recovery: the weak WTI oil price at $79 per barrel, stable global signals, and investor bets reinforced in anticipation of the Federal Reserve’s September interest rate cuts. The coming week’s market outlook will be shaped by key domestic and international economic data, including India’s WPI manufacturing and inflation index, the US PPI, Core CPI, Initial Jobless Claims, Core Retail Sales, Japan’s GDP, India’s Q4 corporate results, and a speech by Fed Chairman Jerome Powell.
Expert Market Outlook
Dharmesh Shah, Vice President, ICICI Securities, expects the index to consolidate in the broader range of 21,700–22,400 amid elevated volatility. He advises traders to refrain from creating aggressive short positions near the key support zone amid an oversold condition. He also highlights that the India VIX tends to rise ahead of the election and eventually fizzle out post-election outcomes as anxiety around the event settles down.
Bank Nifty Outlook
With a 5% correction already in place, Shah expects the Bank Nifty to maintain the same rhythm and pose a decent pullback amid oversold conditions. He anticipates the Bank Nifty to undergo base formation in the 47,000–48,500 zone in the coming week.
Top Stock Recommendations
Shah recommends buying State Bank of India (SBI) in the range of ₹800-818 for the target of ₹890 with a stop loss of ₹745, and Jindal Steel & Power Ltd in the range of ₹900–930 for the target of ₹1,050 with a stop loss of ₹848.
Conclusion
Despite the recent market volatility, experts believe that there are opportunities for investors. The market is expected to consolidate in the near term, and investors are advised to focus on quality stocks. The upcoming economic data and election outcomes will further shape the market direction.
