Riding on positive global cues, Indian equity markets continued their upward trajectory on Wednesday, marking the fourth consecutive day of gains. The Nifty 50 index, a barometer of the Indian market, closed 34 points higher at 22,402 levels. The BSE Sensex, another key market indicator, surged 114 points to end at 73,852. The Bank Nifty index, which comprises banking and financial sector stocks, also witnessed a notable gain of 218 points, closing at 48,189. Cash market volumes on the National Stock Exchange (NSE) were relatively lower than the previous day, totaling 1.03 lakh crore. Broad market indices outperformed the Nifty 50 index, indicating a positive sentiment across various sectors. The advance-decline ratio, which measures the number of advancing stocks compared to declining stocks, remained positive at 1.63:1. Analysts expect a brief consolidation in markets before they resume their upward trajectory. nn
Outlook for Today’s Trading
nnJatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, commented on the outlook for the Nifty 50 index: “The Nifty 50 index opened on a positive note on Wednesday and consolidated to close in the green up 34 points. On the daily charts, we can observe that the Nifty 50 index has been trading around the 22,400 mark, which coincides with the 61.82% Fibonacci retracement level of the previous fall from 22,776 to 21,777 and also the lower end of the gap area formed on the 15th April. A brief consolidation is likely to continue considering the sharp run-up. The hourly momentum indicator has a negative crossover which also suggests some consolidation before it starts a new cycle on the upside. On the upside we expect the Nifty 50 index to target levels of 22,560 from a short-term perspective.”nnKunal Shah, Senior Technical & Derivative Analyst at LKP Securities, provided insights on the outlook for the Bank Nifty index: “The Bank Nifty saw a sideways trading session following a positive start, holding firm around the support zone of 48000-47800. Immediate resistance is noted at 48500, and a decisive breakthrough could signal further upside towards 49500/50000 levels. With the overall sentiment remaining bullish, any pullbacks towards the support zone should be viewed as buying opportunities.”nn
Key Triggers for Today’s Market
nnA report by Motilal Oswal Private Wealth highlighted some key triggers that may influence the Indian stock market today: “Over the last five years, India’s capital markets have witnessed vibrant participation from domestic retail savers, with accounts surging to 151 mn in Mar’24 from 36 mn in Mar’19. India Inc. has raised USD 92.9 bn through primary markets during this period. Expectations of political continuity augur well for market sentiment. Corporate earnings growth may witness moderation relative to the pace witnessed over the last few years but is expected to remain steady given the robust health of India Inc.’s balance sheets and the ongoing capex cycle. BFSI, Infrastructure, and manufacturing are likely to be the key focus sectors going forward.”nn
Stock Recommendations by Experts
nnSeveral market experts provided stock recommendations for today’s trading session: nn- Sumeet Bagadia, Executive Director at Choice Broking, recommended buying Glenmark at 1071 with a target price of 1140 and a stop loss of 1019. He also suggested buying Godrej Consumer Products at 1212.80 with a target of 1295 and a stop loss of 1165.nn- Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, recommended buying IRCON at 241.45 with a target price of 257 and a stop loss of 234. He also suggested buying Alembic at 95.75 with a target of 101 and a stop loss of 93.nn- Mitesh Karwa, Research Analyst at Bonanza Portfolio, recommended buying Hero MotoCorp at 4393 with a target price of 4560 and a stop loss of 4305. He also suggested buying Cosmo First at 626 to 628 with a target of 666 and a stop loss of 609, as well as BECTORFOOD at 1155 to 1157 with a target of 1234 and a stop loss of 1120.
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