Stock Market LIVE: Indices in red, Sensex down 150 pts; Pharma, IT slip

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Stock Market LIVE: Indices in red, Sensex down 150 pts; Pharma, IT slip

Recession and Rate Hike in Focus 

Markets opened cautiously on Thursday but are trading flat now amidst negative global cues. Dr Reddy’s and Sun Pharma lost ground in early trading but bank stocks are trading steady. Asian markets are down as traders assess the risk of recession and further rate hikes.

Stocks in Asia opened on a weaker note on Thursday as traders assessed the risk of recession in China and the Fed’s minutes signalling ongoing interest-rate hikes but at a slower pace. Wall Street closed in red and Asian markets tracked it and slipped in the morning session.

The Indian equity market started the session on a promising note tracking the positive global cues. The optimism across the global bourses and favorable domestic macro data has spread buoyancy to our market, resulting in broad-based buying interest. The benchmark index Nifty50 surged upwards for the seventh consecutive session to reclaim the 17900 level and continued its positive stature by procuring over six-tenth of a percent gain.

The bulls have taken complete control of the market and are being very rigid in letting any correction happen. The broad-based buying has also bolstered positive sentiments across the participants, which are evident on the technical chart. The unilateral movement of the index has placed it toward the psychological mark of 18000, which might hinder the ongoing up move, followed by the weekly swing high of 18100-18150 odd levels that might act as a sturdy wall for the bulls. On the contrary, 17830-17765 is likely to act as the immediate support zone, whereas the sacrosanct support lies around the 17500 mark.

There have been contributions across the board, wherein the significant benefactors that boosted the bullish sentiments were from the IT and Banking space. Looking at the recent developments, the undertone is likely to remain in favor of the bulls, with significant traction seen outside the indices. Hence it is advisable to keep Identifying apt themes and potential movers within the same, which are likely to provide better trading opportunities. Meanwhile, it is also advisable to keep a close tab on global developments.

 On the technical front, Nifty formed a positive candle on the daily chart and is close to challenge the life time high. The trend line resistance adjoining the highs of Oct’21, Jan’22 and Apr’22 has been breached and is trading comfortably above it. Against such backdrop one can expect that the present rally to extend further immediately towards 18100-18150 levels. Likewise support base has now shifted higher to 17,500 to 17,550 range (gap support). Momentum oscillator though are trading in overbought price conditions, but no signs of exhaustion can be seen yet rather had been supportive with weekly RSI breached past the 6-months falling trend line. Market breadth has seen remarkable improvement, indicating broader market participation across sectors. Thus, during the day Nifty is likely to open on a slight negative note due to weak overnight global market, however overall outlook is positive hence, intraday dip towards 17,800-17,850 can be the buying opportunity for target of 18,100.

ICICI Bank shares at record high. Brokerages remain bullish, give 4-digit target price

ICICI Bank shares have been trading at record high levels of ₹885 and brokerages see more upside as they remain bullish on the bank stock post the release of its annual report. ICICI Bank’s annual report reaffirms the view that the bank is progressing well in its endeavour to strengthen its Balance Sheet, with a strong focus on the Retail franchise, say analysts

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