b The BSE Sensex plunged 1,390.41 points (-1.80%) to settle at 76,024.51, while the NSE Nifty50 dropped 353.65 points (-1.50%) to close at 23,165.70. The market downturn reflects broader volatility, but experts suggest this correction presents a strategic buying opportunity for long-term investors.
Market Outlook and Key Support Levels
The Nifty50 index formed a bearish candle with a lower high and lower low, indicating extended profit booking. According to analysts at Bajaj Broking, the market is expected to remain volatile, with support levels at 23,000-22,800. Despite the decline, experts believe that investors can leverage the dip to accumulate quality stocks in a staggered manner, with an upside potential towards 24,200 in the coming weeks.
Amid the market’s cautious sentiment, stocks like NTPC, Torrent Power, and Poonawalla Fincorp are generating significant interest. Here’s a closer look at these stocks and their potential movement based on technical analysis:
NTPC: Bullish Momentum Intact
Buy | Target Price: Rs 384-395 | Stop Loss: Rs 328
NTPC has surged more than 20% from its recent low, confirming strong bullish momentum. The stock has reclaimed key moving averages, including the 34, 55, 100, and 200-day EMAs, which signals a trend reversal. With RSI hovering near 60 and MACD in bullish crossover, buying interest remains robust. A decisive move above Rs 384 could push the stock towards Rs 395, while Rs 328 serves as strong support for any dips.
Torrent Power: Strengthening Uptrend
Buy | Target Price: Rs 1,658 | Stop Loss: Rs 1,405
Torrent Power is displaying a rounding bottom formation, a sign of accumulation transitioning into an uptrend. The stock has decisively broken past its previous swing high, with sustained price action above key EMAs reinforcing its bullish outlook. Immediate resistance is placed at Rs 1,658, while strong support is positioned at Rs 1,405.
Poonawalla Fincorp: Trend Reversal in Play
Buy | Target Price: Rs 379-390 | Stop Loss: Rs 323
Poonawalla Fincorp has broken out of a long-term descending trendline, signaling a reversal in momentum. With RSI above 70 and MACD in bullish crossover, buying strength remains prominent. The stock is sustaining above major moving averages, paving the way for potential gains towards Rs 379-390, with support at Rs 323.
