The NIFTY 50 is a benchmark stock market index in India, representing the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange (NSE). It is owned and managed by NSE Indices, which was formerly known as India Index Services & Products Limited, and operates as a wholly-owned subsidiary of the NSE Strategic Investment Corporation Limited. NSE Indices previously held a marketing and licensing agreement with Standard & Poor’s for co-branding equity indices until 2013. Launched on 22 April 1996, the Nifty 50 index is one among various stock indices falling under the Nifty umbrella.
The NIFTY 50 index has become the largest single financial product in India, creating an ecosystem that encompasses exchange-traded funds (both onshore and offshore) and futures and options trading on the National Stock Exchange (NSE) and Singapore Exchange (SGX). It holds the distinction of being the world’s most actively traded contract, with surveys conducted by WFE, IOM, and FIA confirming NSE’s leadership position. However, there was a notable decline in the NIFTY 50 index’s market share on NSE from 65% to 29% between 2008 and 2012. This decline was attributed to the increasing prominence of sectoral indices such as NIFTY Bank, NIFTY IT, NIFTY Pharma, and NIFTY Next 50.
Nifty 50 concluded the week with modest gains despite selling pressure in the banking sector. The overall sentiment on Dalal Street is expected to be positive as long as Nifty 50 remains above the crucial support level of 19,500, where put writers are likely to provide support. Resistance is positioned around 19,750-19,800. A favorable strategy is to buy on dips as long as it holds above 19,500. However, Bank Nifty faced challenges in reclaiming ground above the ascending trendline on the daily chart, indicating a bearish trend in the banking sector. The index has consistently remained below crucial moving averages, emphasizing this weak trend. A significant breakthrough above 44,550 could potentially propel the index towards 45,000 and beyond. On the downside, support is located at 44,200.
Here are three stock recommendations for the coming week:
- Buy DLF | CMP: ₹548 | Target: ₹600 | Stop Loss: ₹524
- DLF is suggested as it broke out of its recent consolidation pattern and consistently remained above its crucial moving average. The daily RSI shows a bullish crossover, indicating potential short-term upward movement.
- Buy HDFC AMC | CMP: ₹2,730 | Target: ₹3,000 | Stop Loss: ₹2,600
- HDFC AMC is recommended for buying as it experienced a consolidation breakout on the daily timeframe, signaling increased positive sentiment. The stock has risen after forming a base around its previous congestion level and maintained its position above crucial moving averages.
- Buy IndusInd Bank | CMP: ₹1,433 | Target: ₹1,520 | Stop Loss: ₹1,380
- IndusInd Bank is recommended for buying as it underwent a consolidation breakout on the daily timeframe, indicating heightened positive sentiment. The stock has risen after finding support around earlier swing lows, and its RSI shows a bullish crossover, suggesting positive momentum.