Indian stock market crashed amidst global woes yet opportunities to buy in Cochin Shipyard, SDBL, BEL, Power Grid IOC LT Finance. In the following, we provide a detailed analysis and set of recommendations for these stocks that are resilient.
Stock Market Analysis Today
The Indian stock market slumped for the second day in a row, falling to soft global cues and widening geopolitical concerns. The Nifty 50 index dropped by around 460 points with the largest intraday fall since June of last year, thereby closing at a value of 21,571. BSE Sensex and Bank Nifty echoed the decline, falling down by 1,628 points and 2060 points respectively to close at 71,500 and 46,064.
However, the bearish sentiment came from unsatisfying results of Chinese economic data and increasing unrest in the Middle East made them nervous investors.
Market Overview:
- Nifty 50: 460 points down, closing at 21571.
- Sensex: Lost 1,628 points to close at 71,500.
- Bank Nifty: The index took a sharp drop of 2,060 points to end at 46,064
Reasons for the Fall:
- Disappointing Chinese economic data
- Growing geopolitical tensions in the Middle East
- Panic selling across industries, especially banking
Despite the broader pullback, market experts identified six stocks showing potential for short-term gains:
1. Cochin Shipyard (Buy at ₹849.10-850.10, Target ₹970, Stop Loss ₹787):
The bullish breakout on the daily chart of Cochin Shipyard signified a positive arrow pointing to an uptrend. Buyer interest was validated by strong volumes and high closing prices. Moving averages and the RSI in addition confirmed positive momentum.
2. SDBL (Buy at ₹297.45-298, Target ₹317, Stop Loss ₹386):
The daily chart for SDBL showed a breakout from the descending triangle indicating an upward trend. The increasing volume further strengthened the bullish case as the price was located well above moving average lines. The ADX and RSI also indicated the uptrend’s strength.
3. BEL (Purchase at ₹187, Stop Loss at ₹180; Target ₹195):
BEL showed a short-term bullish reversal form, where the asset may have an upward bounce. If she holds up ₹180, it will push the stock towards ₹195. Long positions can be initiated by traders with a stop loss of ₹180 and an exit price of ₹195
4. Power Grid Corporation of India (Buy at ₹240, Target ₹248, Stop Loss ₹235):
From the short-term chart of Power Grid, a bullish reversal pattern was observed which indicated potential technical retrenchment to ₹248. The defence of the ₹235 level could open up a bounce toward ₹248. Long at ₹235 and a target price of ₹248 for the traders.
5. IOC (Buy at ₹144.40, Target ₹148, Stop Loss ₹142.80):
The IOC’s daily chart broke through with a powerful bullish candle alongside increased trading volume. This strong bullish sentiment substantiated the buy advice.
6. LT Finance (Buy at ₹169.70, Target ₹180, Stop Loss ₹164):
The daily chart of LT Finance revealed a transition from ranging consolidation to an uptrend back. The current session was moving up and this movement indicated the possibility of a breakout from narrow-range momentum. The bullish setup was supported by the positive short-term trend and increasing volume.
As uncertainty persists in the larger market, day traders seeking short-term gain amidst today’s turmoil should closely monitor these six stocks. But sound risk management in maintaining the stop-loss orders is essential during this heightened market volatility.
