cautious and volatile session likely on profit booking, analysts say

On Monday, Nifty closed up 1.43% at 16,278.50 – Photo: Shuttertstock

The NSE Nifty 50 (India 50) could remain volatile on Tuesday with profit making and slowing economic growth as the main challenges, analysts told Capital.com.

On Monday, brokerage firm Morgan Stanley cut its forecast for Indian GDP growth from 0.4% to 7.2% for FY23, citing slower global growth.

Osho Krishan, principal analyst (technical and derivatives research) at Angel One cautioned against complacency seeing Monday’s gains as global indices are clearly not in big favor.

“It is advisable to look for opportunities outside the index as we can also see good traction from mid and small cap counters,” he said.

Hindalco stock price and IndusInd Bank stock price focused on business developments on Tuesday.

Morgan Stanley also said India’s economic growth would slow further to 6.4% in FY24, 0.3% lower than previous forecasts, according to a local media report.

“The recent sell-off had made some stocks attractive, so traders bought stocks in information technology, metals and telecommunications on Monday.

On the daily charts, the Nifty has formed a long bullish candle that suggests a continuation of the uptrend in the near future. For traders, 16,150-16,200 would act as a strong support zone and above the same, the index might rise to the 16,400-16,450 level. On the other hand, below 16,150 , the uptrend would be vulnerable,” said Shrikant Chouhan, head of equity research (retail) at Kotak Securities.

Nifty 50 hot actions

IndusInd Bank

The private lender’s board has approved a proposal to raise INR 200 billion ($2.53 billion) of debt to fund business growth. The board has approved raising funds through debt securities on a private placement or foreign currency basis, the lender said in a regulatory update.

Hindalco Industries

Hindalco Industries, a subsidiary of the Aditya Birla Group, has signed agreements with Israeli company Phinergy and IOC Phinergy Private for research and development and pilot production of aluminum plates for use in aluminium-air batteries.

Israel-based Phinergy is a company specializing in metal-air battery technology, while IOC Phinergy is a joint venture between Phinergy and Indian Oil Corporation, it said in a regulatory update.

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Aluminum-air batteries, due to their light weight and high energy density, significantly increase the range of electric vehicles and are expected to accelerate the adoption of electric vehicles.

Nice on Monday

On Monday, Nifty closed 1.43% higher at 16,278.50, with information technology, metals, capital goods and banks the main gainers, while the consumer goods index fast-moving finished slightly in the red.

“Markets started the week on a strong note and gained nearly 1.5% following strong global signals. After the gap began, the benchmark gradually rose as the day progressed and finally stabilized around the high of the day.

All sectors, with the exception of consumer goods and pharmaceuticals, contributed to the movement.

Broader markets also ended in the green in the 1.4-1.7% range. Therefore, the Nifty ended with a positive bias near the daily high at 16,280 levels, up 1.4%,” said Ajit Mishra, VP (Research) at Religare Broking.

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NIFTY 50 forecast: Should you buy the dip?Nifty 50 Global stock market index.  With a dark background and a world map.  Graphic concept for your design.