The stock market kicked off the new year with a positive surge. Nifty 50 recorded gains of 0.41%, reaching ₹23,742.90 by Wednesday’s close. As investors looked ahead to Thursday’s trading session, experts weighed in on support levels, resistance, and the best stocks to keep an eye on.
Nifty 50’s Positive Start to 2025
The first trading session of 2025 brought a sense of optimism as the Nifty 50 closed in the green, gaining 0.41%. It reached ₹23,742.90 by the end of Wednesday, proving that market sentiment is shifting positively with the new year. Similarly, the S&P BSE Sensex ended at ₹78,507.41, up by 0.47%, while the Bank Nifty index saw a 0.39% rise to close at ₹51,060.60. The market was predominantly bullish, with most major indices following suit.
However, not every sector had a stellar performance. The Realty index remained an outlier, closing in losses, which drew attention to how some sectors are still cautious. But overall, the broader indices kept their momentum, recording gains ranging from 0.4% to 1.05%.
With market sentiment on the upswing, investors are now looking at the trade setup for the following day, focusing on crucial levels of support and resistance.
What to Expect on Thursday: Key Support and Resistance Levels
As the market gears up for Thursday’s trading session, analysts are eyeing immediate resistance at 23,870 and support at 23,537 for the Nifty 50. Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities, noted that the resistance level of 23,870 will be key to determining the market’s short-term direction. A sustained break above this could signal further upward movement, while failure to breach it might result in consolidation or a pullback.
On the flip side, support at 23,537 offers a cushion against any sudden downswings. A breach below this level could trigger a deeper correction, urging traders to stay vigilant.
For the Bank Nifty, the range to watch is between 50,500 and 52,000. Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd, pointed out that a breakout in either direction from this range could offer clues about the broader trend for banking stocks. Given the crucial role banks play in the economy, any significant movement here will likely ripple across the broader market.
Global Market Outlook: A Positive Start to 2025
On a global scale, the outlook for 2025 seems cautiously optimistic, fueled by positive early data and expectations of earnings growth. Vinod Nair, Head of Research at Geojit Financial Services, highlighted that the market’s rally on the first day of 2025 was broad-based. However, the sustainability of this upward trend will depend heavily on earnings growth for Q3, which is expected to show positive quarter-on-quarter growth.
The improving core sector data and the possibility of an uptick in capital expenditure by the government are likely to drive growth in sectors like capital goods, industrials, automotive, and power. These developments point to a potentially strong year ahead, provided global economic factors align in India’s favor.
Stocks to Watch: Top Picks for Thursday
For traders looking to capitalize on the market’s momentum, stock recommendations are being actively discussed. Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, have shared their picks for today’s trading session.
Sumeet Bagadia’s Recommendations:
- Voltas Ltd: Bagadia suggests buying Voltas at ₹826.95 with a stop-loss at ₹763 and a target price of ₹955.
Ganesh Dongre’s Picks:
- Mahindra & Mahindra: As a top pick in the automotive sector, Mahindra & Mahindra’s strong fundamentals make it a solid bet for Thursday’s trade.
- Texmaco Rail & Engineering Ltd: A promising stock in the rail infrastructure space, recommended for those looking for growth potential.
- NCC Ltd: A construction and infrastructure play, this stock is gaining attention for its steady growth.
With a range of stocks to buy and sell, Thursday’s trading session promises more opportunities for keen investors. It will be crucial to keep an eye on both Nifty 50 levels and the broader economic trends to make informed decisions.
