<ul>
<li>Friday's intraday trading saw the domestic benchmark indices, the Sensex and Nifty 50, reach record highs before ending slightly down as a result of profit-booking in the IT, FMCG, and healthcare sectors.</li>
<li>Though the markets were supported by fresh inflows of foreign cash and steady prices of crude oil on international exchanges, traders noted that the dismal trend in global stocks weighed on the sentiments.</li>
<li>Vinod Nair, Head of Research at Geojit Financial Services, said that despite the recent US FOMC minutes suggesting a sustained hawkish stance on policy rates, sentiments in the global market remained muted.</li>
</ul>
<p><strong>Get the latest insights on the stock market's performance, including record highs, profit-booking trends, and expert analysis on future movements.</strong></p>
<h2><strong>Record Highs and Profit-Booking Impact</strong></h2>
<p>Friday's trading session was marked by significant milestones as the Sensex hit a new all-time high of 75,636.50 before closing 8 points lower at 75,410.39. Similarly, the Nifty 50 reached a peak of 23,026.40 but ended the day 11 points lower at 22,957.10. This slight dip was attributed to profit-booking in key sectors such as IT, FMCG, and healthcare.</p>
<h3><strong>Global Trends and Market Sentiments</strong></h3>
<p>Despite the support from fresh foreign inflows and stable crude oil prices, the overall market sentiment was dampened by a negative trend in global stocks. The recent US FOMC minutes indicated a continued hawkish stance on policy rates, which contributed to the muted sentiments. Additionally, the decline in US unemployment claims and steady business earnings provided no strong impetus for the Federal Reserve to lower interest rates.</p>
<h2><strong>Market Outlook by Dharmesh Shah, Vice President, ICICI Securities</strong></h2>
<p>Dharmesh Shah from ICICI Securities highlighted that the Nifty 50 surpassed the milestone of 22,800, logging a new life high of 23,026. The weekly price action formed a sizable bull candle with a higher high-low, indicating an acceleration of upward momentum. The Nifty midcap index also continued its record-setting spree for the sixth consecutive session.</p>
<p>Shah reiterated a positive stance, expecting the Nifty 50 to head toward the target of 23,400 in the coming weeks. The index's breakout from a three-month consolidation phase, backed by faster retracement, exhibits a robust price structure that bodes well for the continuation of the ongoing uptrend. As the General election phases conclude and Q4 earnings season progresses, volatility is expected to remain high. However, the structural uptrend is likely to persist, providing buying opportunities for investors.</p>
<h3><strong>Key Observations Supporting the Positive Outlook</strong></h3>
<p>Shah noted several key observations that support the positive market outlook:</p>
<ul>
<li>The Nifty 50 staged a strong rebound post a ~5% correction, highlighting inherent strength. Historically, the index has corrected ~6% during polling phases of past elections and eventually hit new highs around election outcomes.</li>
<li>Improving market breadth, with 77% of stocks in the Nifty 500 universe trading above their 200-day EMA, indicates multi-sector participation.</li>
<li>Robust price structures in global markets and lower Brent crude prices are expected to act as tailwinds going forward.</li>
</ul>
<p>Structurally, the formation of higher peaks and troughs makes Shah confident in revising the support base upward to 22,400, which aligns with the 20-day EMA and 50% retracement of the current up move.</p>
<h2><strong>Top Stock Recommendations</strong></h2>
<p>Based on the current market analysis, the following stock recommendations are made:</p>
<ul>
<li>Buy Reliance Industries Ltd (RIL) in the range of ₹2,900-2,965 for a target of ₹3,270 with a stop loss of ₹2,765.</li>
<li>Buy NTPC in the range of ₹366-376 for a target of ₹408 with a stop loss of ₹346.</li>
</ul>
<p><i>Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.</i></p>
<h3><strong>Conclusion</strong></h3>
<p>In summary, the stock market showcased resilience with record highs, despite profit-booking and global sentiment challenges. Expert analysis indicates a continued positive outlook with potential buying opportunities as the market navigates through election results and earnings season. Investors are advised to focus on building portfolios to ride the structural uptrend.</p>
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