Stock Market Outlook: Chalet Hotels, Praj Industries Among

Stock market activity on Thursday began on a positive note, with both the Nifty 50 and Sensex indices showing early gains. Optimism for a potential year-end rally continues to drive investor sentiment, although broader market conditions remain cautious.

The Nifty 50 opened at 23,775.80, gaining 48.15 points (0.2 per cent), while the Sensex started at 78,557.28, up by 84.41 points (0.11 per cent). Shortly after trading commenced, both indices showed an approximate 0.5 per cent increase, supported by selective buying.

Market analysts noted that despite subdued sentiment, hopes of a rally driven by year-end momentum remain intact. Investors are particularly focused on the upcoming trading sessions, which could set the tone for the start of 2025.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized the Reserve Bank of India’s (RBI) revised GDP growth estimates for FY25.

While the Q3 growth projection stands at 6.8 per cent, the overall GDP estimate for FY25 has been adjusted downward to 6.4 per cent from 7.2 per cent. Vijayakumar underscored the need for a policy rate cut in February, alongside fiscal measures, to sustain economic growth and achieve a target of 6.6 per cent in FY26.

Osho Krishan, Senior Analyst at Angel One, highlighted that the Nifty 50 is currently trading within a consolidation phase. The 23,900–24,000 range, aligned with the 200-day Simple Moving Average (DSMA), acts as a significant resistance zone.

A decisive breakout above this level could spark fresh momentum. On the downside, the 23,600–23,500 range serves as immediate support, reflecting the lower end of last Friday’s bearish trend.

Krishan advised traders to exercise caution, as intraday recoveries continue to face selling pressure. He also recommended a selective trading approach, focusing on fundamentally strong stocks.

Stock Recommendations: Chalet Hotels and Praj Industries

Chalet Hotels Ltd

Chalet Hotels has demonstrated resilience, rebounding from its recent correction to test the breakout level at Rs 920. The stock remains above its 21-day Exponential Moving Average (DEMA), maintaining a positive trend. Indicators suggest further upward movement, with the stock positioned for a rally in the near term.

• Buy Range: Rs 970
• Stop Loss: Rs 920
• Target: Rs 1,050

Praj Industries Ltd

Praj Industries has sustained its bullish momentum, consistently trading above its key EMAs near all-time highs. The stock is nearing a breakout, supported by strong technical indicators that signal potential for further gains.

• Buy Range: Rs 810–Rs 800
• Stop Loss: Rs 760
• Target: Rs 870–Rs 880

As the trading week progresses, market participants will keep an eye on key resistance and support levels. While broader markets remain cautious, selective buying in strong stocks like Chalet Hotels and Praj Industries offers potential opportunities.

Investors are advised to approach trading with a balanced strategy, given the prevailing market conditions.