Domestic benchmark equity indices, the Sensex and the Nifty 50, commenced Wednesday’s session on a positive note, buoyed by favorable global cues and advances in metals and auto stocks. Chief Investment Strategist Dr. V K Vijayakumar of Geojit Financial Services emphasized that the ongoing bull market, which has weathered various obstacles, demonstrates the resilience of bull markets in overcoming challenges.
The NSE Nifty 50 opened at 22,421.55, marking an increase of 53.50 points or 0.24%, while the 30-share BSE Sensex commenced trading at 73,957.57, a gain of 213.65 points or 0.29%. The benchmarks at Dalal Street extended their winning streak for the third consecutive day on Tuesday, as tensions between Iran and Israel receded into the background.
The sectoral indices presented a mixed picture; the Realty Index surged by 2.58%, while the Pharma Index declined by 0.96%. India VIX, a measure of market volatility, dropped to 10.30 levels, a further 18.90% decrease. In Tuesday’s trade, the Nifty Midcap 50 finished 0.73% higher, and the Nifty Smallcap Index performed even better, gaining 1.23%.
The 30-share BSE Sensex concluded at 73,738.45, an increase of 89.83 points or 0.12%. The NSE Nifty 50 ended at 22,368.00, a gain of 31.60 points or 0.14%.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President-Research, Nuvama Professional Clients Group
The Nifty 50 has rebounded by over 3% from its recent swing low in the past three trading days. The accumulation of over 100k short contract positions from FII desks has triggered excessive short covering, providing momentum to the index.
“The set-up has once again turned into a buy-on-dip mode, with dips below 22,300 now acting as the demand zone for targets of 22,700+. Stop loss on this set-up is seen at 22,150,” said Sagar Doshi, Senior Vice President-Research, Nuvama Professional Clients Group.
Bank Nifty Outlook
The Bank Nifty has now surpassed its previous breakout zone of 47,700. The index has recovered close to 1,500 points in the past three trading days. Bank Nifty is anticipated to continue its positive momentum, targeting an upside towards 49,100.
Top Stock Recommendations by Sagar Doshi
For top stock recommendations on Wednesday, Sagar Doshi has highlighted four stocks:
1. L&T (BUY): LCP: 1,547; Stop Loss: 1,489; Target Price: 1,650
2. Deepak Nitrite Ltd (BUY): LCP: 2,365; Stop Loss: 2,284; Target Price: 2,533
3. Future Retail Ltd (BUY): LCP: 669.30; Stop Loss: 647.00; Target Price: 717.50
4. APL Apollo Tubes Ltd (BUY): LCP: 1,568; Stop Loss: 1,500; Target Price: 1,660
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