The Indian stock market continued its downward trend on October 17, 2024, losing nearly half a percent as part of the ongoing correction phase. Following a flat opening, the Nifty index experienced sharp fluctuations, ultimately closing at the 24,971.30 level. Most key sectors mirrored the benchmark performance, with auto and IT stocks among the top losers. The broader indices, which had recently enjoyed gains, also pulled back slightly, finishing marginally in the red.
Market analysts attribute the recent downturn to persistent selling by foreign investors and a lackluster start to the earnings season. However, strength in select heavyweight stocks has helped to mitigate the decline. Currently, the overall outlook remains negative for the index, with the next critical support level identified at 24,700. Traders are advised to adjust their positions accordingly, as opportunities are emerging on both sides of the market.
Stocks recommendations by Ajit Mishra:
Ajit Mishra, a prominent analyst at Religare Broking, has recommended three stocks for investors looking to navigate the current market landscape effectively. Here are his top picks:
- Deepak Nitrite Limited
- LTP: ₹2,999.50
- Recommendation: Buy
- Target Price: ₹3,230
- Stop-Loss: ₹2,870 Deepak Nitrite has recently broken out of a falling channel pattern after undergoing a corrective phase for the past two months. This breakout, supported by strong trading volumes, indicates accumulation by stronger market participants. Given this positive price action, Mishra anticipates that the stock will resume its previous uptrend and could potentially reach new highs in the coming sessions. Investors are encouraged to capitalize on this opportunity before the stock gains further momentum.
- DLF Limited
- LTP: ₹884.75
- Recommendation: Buy
- Target Price: ₹925
- Stop-Loss: ₹864 The real estate sector has been gaining momentum recently, with DLF showing a notable catch-up move. The stock has formed a bullish candlestick pattern after dipping to a previous swing low, creating a fresh buying opportunity above its 20-week exponential moving average (WEMA). Given the improving dynamics in the real estate sector, investors can consider accumulating DLF with a potential target of ₹925 in the upcoming sessions.
- IndusInd Bank Limited
- LTP: ₹1,351
- Recommendation: Sell Futs
- Target Price: ₹1,290
- Stop-Loss: ₹1,380 The banking sector has exhibited a mixed trend lately, with IndusInd Bank facing pressure and forming a pattern of lower highs and lower lows. The stock has taken a breather around its previous swing low, and current indications suggest a resumption of the corrective bias soon. Traders are advised to consider creating short positions in IndusInd Bank, targeting ₹1,290 with a stop-loss at ₹1,380.
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Market outlook:
As the market continues to grapple with selling pressures and mixed sector performance, investors should remain cautious and strategic in their approach. While opportunities arise, particularly in select stocks like Deepak Nitrite and DLF, the overall negative sentiment suggests a careful assessment of positions is essential.
The current market dynamics underscore the importance of adapting trading strategies based on market trends and stock performance. With potential upside in some sectors and ongoing challenges in others, investors must maintain a balanced portfolio and stay updated with market movements.
In conclusion, while the market is experiencing a correction, Ajit Mishra’s stock recommendations provide insights into potential buying opportunities for investors. Deepak Nitrite and DLF stand out as promising picks, while IndusInd Bank may present short-selling opportunities. Traders are encouraged to monitor their positions closely and adjust their strategies as market conditions evolve.
