The Indian stock market experienced a significant decline on Tuesday, August 12, with both the Sensex and Nifty dropping by approximately 1 percent. The Sensex closed below the 79,000 level, while the Nifty fell below 24,200. This decline was primarily attributed to a broad sell-off, particularly in banking, metals, and auto stocks. Additionally, continued foreign fund outflows and mixed global market trends further dampened sentiment in domestic equities.
Looking ahead to Wednesday’s trading session, market experts provided insights on the potential trade setup for the Nifty. Rupak De, Senior Technical Analyst at LKP Securities, noted that the near-term trend appears negative, with 24,250 serving as a new resistance level. He suggested that as long as the Nifty remains below 24,250, the strategy should be to sell on rallies. On the downside, initial support is around 24,000, with a potential further decline towards 23,700 if the index falls below this level.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, highlighted that the market succumbed to global headwinds and cautiousness ahead of US inflation data. Despite healthy macro data in India, the lack of major positive triggers may lead to continued consolidation in the market. However, Khemka advised investors to view the dip as a buying opportunity in quality stocks, especially large-caps with comfortable valuations.
In terms of specific stock recommendations for the day, experts Sumeet Bagadia and Ganesh Dongre provided insights on potential buy or sell opportunities. Sumeet Bagadia recommended buying ICICI Securities and Fortis Healthcare, citing technical indicators such as the Relative Strength Index (RSI) and moving averages to support his analysis. Ganesh Dongre suggested buying Power Grid Corporation of India, HCL Technologies, and Tata Power, highlighting bullish reversal patterns and breakout opportunities in these stocks.
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