Indian Market Under Pressure: Nifty 50 Eyes 24,900 Support as Q1 Results Emerge

The Indian benchmark Nifty 50 index concluded Thursday's trading session down 0.40% at 25,111.45, reflecting weakness in global markets. The Bank Nifty also experienced a decline, closing 0.59% lower at 56,828.80, with the IT sector leading the broader market's fall.

Despite the overall downward trend, sectors like Realty, FMCG, and Metals registered gains, providing some resilience. Mid and small-cap indices, however, also ended the day slightly lower.

Friday's Trade Outlook: Bearish Momentum Continues

According to Rupak De, Senior Technical Analyst at LKP Securities, a consolidation breakout is evident, signaling a weakening of bullish momentum. The prevailing market sentiment appears bearish, potentially pushing the Nifty towards the 24,920–24,900 range in the short term. On the upside, 25,260 is expected to act as a significant resistance level.

For the Bank Nifty, Bajaj Broking indicates that crucial short-term support lies within the 56,000–55,500 region.

Global Factors and Q1 Earnings: A Mixed Bag

Several key factors are currently exerting pressure on the markets. Uncertainty surrounding the future of US Fed Chair Jerome Powell, persistent outflows by foreign institutional investors (FIIs), and declines in heavyweight stocks such as Infosys, HDFC Bank, and Reliance Industries are contributing to the cautious sentiment. Recent reports indicate ongoing speculation regarding Powell's tenure, with mixed signals from the US administration creating unease.

The market is now keenly awaiting first-quarter (Q1) earnings from major companies, including Axis Bank, Wipro, and LTI Mindtree. Vikram Kasat, Head - Advisory at PL Capital, suggests that these results could lead to near-term market consolidation. However, analysts maintain a cautiously optimistic stance, citing potential tailwinds from a recovery in rural demand, specific sector growth in healthcare and infrastructure, and positive developments in India-US trade dialogues.

Eight Stocks Recommended for Friday's Trading

For investors looking for opportunities in the current market, several experts have provided their top stock recommendations for Friday:

♦ Thomas Cook (India) Ltd (THOMASCOOK): Sumeet Bagadia of Choice Broking recommends buying around ₹177.9 with a target of ₹188 and a stop loss at ₹171. The stock shows a strong uptrend and is positioned for a potential breakout.

♦ Time Technoplast Ltd (TIMETECHNO): Bagadia also suggests buying TIMETECHNO at approximately ₹472, targeting ₹500 with a stop loss at ₹455. This stock has demonstrated a significant breakout with bullish indicators.

♦ Axis Bank Ltd: Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, advises buying Axis Bank around ₹1160, aiming for ₹1210 and a stop loss at ₹1140. The stock exhibits a strong bullish pattern with robust support.

♦ Punjab National Bank (PNB): Dongre recommends buying PNB at about ₹115, setting a target of ₹122 and a stop loss at ₹110. PNB also displays a continued bullish pattern.

♦ National Aluminium Company Ltd (NATIONALUM): Dongre suggests buying NATIONALUM around ₹189, targeting ₹198 with a stop loss at ₹185. The stock shows a consistent bullish trend, holding above a key support level.

♦ Welspun Corp Ltd (WELSPUN CORP): Shiju Koothupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher, recommends buying WELSPUN CORP at approximately ₹931.90 for a target of ₹975, with a stop loss at ₹914. The stock is showing a bullish candle formation with increased volume.

♦ Prestige Estates Projects Ltd (PRESTIGE ESTATE): Koothupalakkal advises buying PRESTIGE ESTATE around ₹1783 for a target of ₹1865, keeping a stop loss at ₹1750. The stock has seen a breakout with significant volume.

♦ VA Tech Wabag Ltd: Koothupalakkal recommends buying VA TECH WABAG around ₹1498 for a target of ₹1565, with a stop loss at ₹1475. The stock has shown a bullish candle formation after a period of consolidation.