Investors Chary Of Market Direction

Mumbai: Despite the short recovery in the past two sessions, markets lost the momentum as there is still a lot of pessimism due to slowing growth, higher domestic valuations, foreign fund outflows and uncertainty over US trade policies post Trump’s resumption as the country’s president

Prashanth Tapse, Senior VP-Research, Mehta Equities, said: “Hence, markets may see bouts of correction and investors will continue to maintain caution while keeping an eye on global developments.”

Vaibhav Vidwani, Research Analyst, Bonanza, said: “The Indian stock market experienced a significant downturn, with the BSE Sensex plummeting by 720 points (0.76 per cent) to close at 79,223, while the NSE Nifty fell by 183 points (0.76 per cent) to end at 24,004. This decline was primarily driven by losses in key sectors such as IT, pharmaceuticals, healthcare, and banking. The market opened lower and continued to slide throughout the day, reflecting broader concerns about economic growth and investor sentiment.”

Among the hardest-hit were Zomato Ltd and Tech Mahindra Ltd, which saw declines of over 4 per cent and 2 per cent, respectively. Despite earlier optimism regarding potential earnings growth for the upcoming quarter, recent economic indicators have dampened expectations, contributing to the market’s volatility as investors remain cautious heading into the new year.

Stock Picks

Bajaj Finserv |TRADE-BUY: Rs1704 | SL: Rs1650 | TARGET: Rs1750

Bajaj Finserv has broken out above Rs1690 and is now eyeing its next resistance near Rs1750. The stock has witnessed a strong pickup in volumes, signaling bullish momentum and a likely move higher. With an intact uptrend and positive sentiment, traders can aim for Rs1750 while keeping a strict stop loss at Rs1650 to manage risks.

Bajaj Finance |TRADE-BUY: Rs7415 | SL: Rs7350 | TARGET: Rs7700

Bajaj Finance has broken out above Rs7257, with its next resistance zone at Rs7600-7700. The stock is supported by robust volumes and a strong technical setup, pointing to sustained bullish momentum. Traders can look for a move toward Rs7700, ensuring a stop loss at Rs7350 to safeguard against any downside.

(Source: Riyank Arora, technical analyst at Mehta Equities)