Nifty Stays Below 25,100; Tata Motors Slips, Adani Power Extends Gains

Listless start for Dalal Street as Indian equity markets remained rangebound at open, with the Nifty index hovering below 25,100. 

At 09:40 a.m. IST, the Nifty 50 traded 23 points lower at 25,080, while the Sensex was up 8 points at 81,723. Broader markets gained, with the Nifty Midcap and Smallcap indices rising 0.1%.

The retail sentiment on Stocktwits for the Nifty remained ‘bearish’ at market open. 

Stock Watch

Sectorally, autos and real estate remained under pressure, while metals saw strong buying. Hindustan Copper surged over 2% as copper prices traded at multi-month highs. 

Adani Power continued its winning streak, clocking 4% gains in opening trade. 

While Tata Motors fell over 2% after a FT report suggested that JLR could face losses of nearly £2 billion, exceeding last year’s profit, as the company was not insured against the cyberattack that took place last month.

Defence stocks traded higher with BEL, BEML, BDL, Mazagon Dock and GRSE rising between 2% and 4%.

Newgen shares gained 5% after its UK unit signed a five-year master services deal with TCS NV, Belgium, covering cloud hosting, software licensing, and implementation services.

Lupin gained over 1% on the back of a tentative U.S. FDA approval for its generic HIV treatment drug. And Zuari Industries rallied 8% following a block deal. 

Stock Calls

Analyst Vinayak Gautam shared three stock recommendations for Thursday with a 1-week timeframe:

Hindalco: Buy at ₹741, with a target price of ₹760, and stop loss at ₹731

Gujarat Pipavav: Buy at ₹153, for a target price of ₹160, and stop loss at ₹150

Indian Hotels: Buy at ₹746, for a target price of ₹760, and stop loss at ₹737

Markets: The Road Ahead

From a technical standpoint, SEBI-registered analysts on Stocktwits shared the trade setup. 

Analyst Prabhat Mittal identified Nifty support at 24,880 with resistance at 25,220. For Bank Nifty, he sees support at 54,700 and resistance at 55,500.

Investment advisor Nidhi Saxena of The Trade Bond stated that the Nifty index was holding just above its 20-day EMA, and a sustained close below this level could invite short-term weakness. Support is seen at 24,900 with resistance at 25,250. 

For Bank Nifty, she advised watching 55,000; an hourly close below this may trigger further downside. Support is seen at 54,900, and resistance at 55,500,

Ashish Kyal said the Nifty has continued to move lower and is now at the 25,050 level, which is the immediate support. A break above 25,140 is required for reversal confirmation to 25,220 or higher.

Global Cues

Globally, Asian markets traded mixed, while crude oil prices continued to extend their gains. Global risk appetite weakened after Fed Chair Jerome Powell signaled that an October rate cut is unlikely. 

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