Srinagar, Apr 16: As the stock market extends losses for the third consecutive day, there may be potential buying opportunities in two stocks – TECHMM and ACC.
Technical analysis suggests that in ACC if the price sustains above Rs 2,450, it has the potential to move upwards.
Similarly, for TECHM, the stock opened with a gap down, but it has the potential to consolidate and move up. Intraday buying can be initiated if the price consolidates above Rs 1,215.
The Sensex and the Nifty extended their fall for the third straight day as traders assess the market impact of the worsening situation in West Asia. Rising US treasury bond yields, which shot to a five-month high, also weighed on investors’ risk appetite.
Analysts advise investors to adopt caution and wait and watch how the developments unfold. The Sensex was down 334.28 points, or 0.46 percent, at 73,065.50, and the Nifty was down 86.50 points, or 0.39 percent, at 22,186.00. However, the market breadth was in favor of gainers, with around 1,811 shares advancing, 851 declining, and 107 remaining unchanged.
The rising bond yields reduce the prospects of rate cuts by the US Federal Reserve this year, which could be negative for risky assets such as equity and accelerate FII selling in emerging markets like India. Additionally, the Israeli military chief’s statement that “there will be a response to Iran’s attack on Israel” has increased the probability of escalation of tensions in the already volatile region.
Leading the gainers in the Nifty were Nestle India, Bharti Airtel, Titan, Eicher Motors, and SBI Life, while LTI Mindtree, TCS, Infosys, NTPC, and Bajaj Finance were among the top losers.
Technically, the Nifty formed a negative candle on the daily chart with a gap-down opening, signaling a potential short-term reversal in the market trend. However, the larger pattern of higher tops and bottoms remains intact on the weekly chart, with the index currently approaching the weekly 10-period Exponential Moving Average (EMA) around the 22,200 level, historically a supportive level.