Stock Market News: The domestic benchmark indices, the Sensex and Nifty 50, opened Tuesday's trading day down due to the persistent trends from the Lok Sabha election.
The market reached an all-time high on Monday, with notable gains and no losses, before this decline.
The Nifty 50 opened at 22,855.55, down 408.35 points from the opening bell, while the Sensex fell 1,135.48 points to 75,333.30. Just six of the Nifty 50 firms went up while 44 were falling, which indicates that investors were mostly cautious.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, claims that the market has already factored in a 733-point Nifty surge yesterday, discounting an obvious victory for the NDA and a majority for the BJP on its own. Major shifts in the market can only be brought about by a significant deviation from this anticipated result.
Even if the exit polls are confirmed by the results, investors don't have to go in and purchase now. Keep the funds in large-cap stocks and record a little profit in small-cap stocks, advised Vijayakumar.
Market Review and Outlook - Ruchit Jain
Our markets gave a thumbs up to the exit polls and Nifty 50 started the week at a new record high with a significant gap up. The benchmark rallied higher along with the broader markets and Nifty 50 ended the day above 23,300 with gains of over three percent, said Ruchit Jain, Lead Research Analyst at 5paisa.
Nifty 50 rallied higher along with the broader markets as the exit polls hinted at continuation of the existing government with significant margins. The Public Sector Undertakings (PSU) stocks witnessed renewed buying interest, which were the outperformers and Nifty 50 /Sensex posted new record highs. The index ended well above the previous hurdle of 23,100-23,000 which hints at a continuation of the uptrend.
Share market tips today
The actual results will be declared on Tuesday, and if all goes well then we could see a continuation of the momentum on the higher side. The previous hurdle of 23,100-23,000 will be seen as the immediate support now, while on the higher side retracements of previous moves hints at possible targets around 23,700 followed by 24,000-24,200. Hence, traders are advised to continue trade in the direction of the primary trend with a positive bias, explained Ruchit.
Stocks in focus today - Ruchit Jain
On stocks in focus on Tuesday, Ruchit Jain recommends buying two stocks - DLF Ltd and Crompton Greaves Consumer Electricals Ltd.
DLF Ltd
Ruchit stated that The stock went through a corrective phase in last couple of months, but it managed for a support base around its 100 DEMA support. The stock has started moving higher from this support with good volumes and the RSI oscillator is also hinting at positive momentum.
"We advise traders to buy the stock in the range of ₹870-860 for potential target of ₹940. The stoploss on long positions should be placed below ₹830," said Jain.
Crompton Greaves Consumer Electricals Ltd
Jain explained that post a sharp up move in the mid-May, the stock has been consolidating in a range since last few days. The price up moves were supported with good volumes and the recent price action has led to formation of a 'Bullish Flag' pattern on the daily chart.
"We advise traders to buy the stock in the range of ₹395-390 for potential target of ₹440. The stoploss on long positions should be placed below ₹370," said Ruchit.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.