Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open with marginal gains on Tuesday, following mixed signals from overseas markets.
As rising geopolitical tensions following the Pahalgam attack have been making the Indian stock market more volatile, specific sectors are still robust and even offer good investment prospects, experts say.
The Gift Nifty trends also suggest a flattish opening for the Indian benchmark index. The Gift Nifty was at around 24,571 levels, which is a premium of close to 17 points from the previous close of the Nifty futures.
The sentiment of investors is still cautious in light of the geopolitical tensions between India and Pakistan following the Pahalgam terror attack.
On Monday, the local equity market closed higher, with the benchmark Nifty 50 index closing above the 24,400 mark.
The Sensex rose 294.85 points, or 0.37%, to close at 80,796.84, while the Nifty 50 closed 114.45 points, or 0.47%, higher at 24,461.15
Promising sectors are
- Defense—with stocks like HAL and BEL gaining on the back of increasing government spending and indigenization initiatives.
- Private Banking—with HDFC Bank and ICICI Bank supporting good fundamentals.
- Pharmaceuticals—Sun Pharma and Dr. Reddy's are bets for uncertain times.
- Infrastructure—L&T can withstand a government capex mania.
Emerging Picks
The experts have also picked up other stocks that have high growth potential-
- Adani Enterprises can see substantial upside, with diversified business interests to drive it.
- Shriram Finance Ltd. can gain with strong demand for the financial industry.
Together, both Shriram Finance and Adani Enterprises shares are watched closely for possible high returns.
What to look out for in Sensex, Nifty 50, and Bank Nifty:
Sensex Prediction
Sensex created a small bullish candle on the daily chart, and on intraday charts it is maintaining an uptrend continuation formation.
Experts are also of the opinion that 80,500 would serve as an important support level for trend followers. Beyond the same, Sensex could go to 81,000-81,300. Alternatively, a rejection of 80,500 could lead to a sharp intraday correction. Below the same, Sensex may revisit the mark of 80,200–80,000," said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty OI Data
Nifty derivatives data shows high call open interest at 24,500 and 24,600, which are resistance levels. On the put side, significant open interest at 24,300 and 24,000 reflects these as important near-term support zones, said Mandar Bhojane, Equity Research Analyst at Choice Broking.
Nifty 50 Prediction
Nifty 50 saw a sustainable rally on May 5 and closed the day higher by 114 points with range-bound action.
"A small positive candle was constructed on the daily chart with a small upper shadow. Technically, this market action indicates a potential upside breakout of the barrier of 24,500–24,600 levels in the short term. If Nifty 50 is able to cross above 24,600 levels, then that can be a clear upside breakout of a bullish ascending triangle-type pattern, which are continuation patterns in an uptrend," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
In his opinion, the short-term trend of Nifty 50 remains positive, and with a sustainable breakout over the barrier of 24,500-24,600 levels, Nifty 50 can head towards the next upside of 24,800-25,000 in the near term. The immediate support lies at 24,250.
The views, analysis, and suggestions made here are those of a brokerage and do not carry the views of Truescoop. Always seek advice from a professional investment advisor or financial planner before investing.