Indices Surge Amid Bullish Momentum
The Indian stock market experienced a robust rally on Thursday, with key indices delivering significant gains driven by strong performances in the IT and auto sectors. The Sensex surged by 1,436 points to close at 79,944, while the Nifty rose 446 points, settling at 24,189. Both indices recorded nearly 2% gains, with the Sensex briefly crossing the 80,000 mark and the Nifty reclaiming key technical benchmarks. Analysts observed that Nifty traded above its 20-day and 50-day moving averages, signaling a shift in market sentiment.
According to Rupak De, Senior Technical Analyst at LKP Securities, the index broke past its 200-day moving average after several failed attempts, with a bullish crossover in the Relative Strength Index (RSI). This development confirms a “buy on dips” strategy, with support at 24,000 and a potential upside target of 24,500.
Stock Picks Highlighted for Friday Trading
Market experts have identified a set of stocks poised for growth based on technical indicators and bullish trends. Policy Bazaar is one of the top recommendations, with analysts citing its strong upward momentum, reinforced by a bullish RSI and trading above key exponential moving averages. The stock has shown consistent strength, targeting a price of ₹2,350. Pearl Global Industries has also emerged as a compelling choice after breaking out above a critical resistance level. Analysts highlight its higher high and higher low patterns, increasing trading volumes, and alignment with essential moving averages, setting a target of ₹1,616.
In addition to these, AB Capital, REC Ltd, and Paytm are flagged as promising opportunities. AB Capital has displayed a bullish reversal pattern, with support at ₹177 and a potential rise to ₹195. REC Ltd has similarly shown positive momentum, maintaining strong support at ₹510 and aiming for a price of ₹535. Paytm’s recent technical analysis points to a bullish reversal, with the stock expected to rise to ₹1,010, supported by robust market sentiment and key support levels at ₹960.
Investor Outlook Amid Positive Market Trends
The market’s strong upward trajectory provides a favorable environment for growth-oriented investors. Experts emphasize that the technical breakthroughs in indices like the Nifty and the emergence of stock-specific opportunities suggest potential gains in the near term. While the market sentiment remains bullish, analysts advise investors to approach cautiously, keeping an eye on critical support and resistance levels to maximize returns while mitigating risks. With both indices and select stocks demonstrating strong momentum, the Indian stock market continues to offer lucrative opportunities for strategic investments.
