Indian stock markets face record losing streak as analysts eye short-term stock picks

The Indian stock market stayed in the negative zone for the eighth week in a row for the week ended October 1, marking its longest losing streak in 25 years.

Market Pressures

Foreign portfolio investors selling stocks constantly, high global bond yields, expensive crude prices, and worries about tighter monetary policy are pushing markets down.

Expert View

Jigar S. Patel from Anand Rathi Share and Stock Brokers states the market is at a major turning point, with the Nifty holding its 22,200 support level while the daily RSI sits at multi-month lows.

Stock Picks

Patel recommends Omnitech Engineering, targeting 700 rupees with a 550 rupee stop-loss after a breakout above 575 rupees. He also suggests accumulating IT BEES in the 29.50 to 31.50 rupee range with a 39.13 rupee target, and buying Laxmi Organic Industries between 178 and 182 rupees with a 201 rupee target.

Context

Technical analysis uses past price patterns and momentum indicators like the RSI to help traders guess where stock prices might move next. Market support levels act as price floors where buying interest is often strong enough to stop further drops.