Stock market today: Domestic equity markets began on a strong note on Wednesday, with the automotive sector taking center stage amid notable trade outcomes.
As of 9:15 IST, the Nifty 50 increased by 0.33% to reach 25,258.85, while the BSE Sensex saw a marginal gain of 0.04%, rising to 81,892.36.
Overall market sentiment remains cautiously positive, despite challenges such as pressure on the rupee and selling from foreign portfolio investors.
Officials stated that the free trade agreement, which will represent nearly a quarter of global GDP, will lower tariffs on 99% of Indian exports to the EU and reduce duties on more than 97% of EU exports to India.
In the meanwhile, foreign institutional investors sold shares totaling ₹3,068.49 crore on Tuesday, whereas Domestic Institutional Investors (DIIs) surpassed them by purchasing stocks valued at ₹8,999.71 crore, as per exchange data.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50
After an extremely volatile week, Nifty 50 ended with a -2.5% cut while India VIX gained ~25% in the same time as a run up to Union Budget at the end of this week. Nifty 50 has been hovering around its 200 DMA for the first time in past 9 months which could continue to push short term volatility with a downward bias. Short term resistance is seen at 25,350 while medium term trend reversal is now unlikely unless a weekly closing above 25,660 is not seen. With monthly expiry due now out of the way, focus shifts to the Union Budget. A range of 25,000 – 25,350 is seen.
Bank Nifty
Bank Nifty bounced back with vengeance on Tuesday after a -2.7% cut seen last week fueled by stronger numbers on private and PSU large caps. All of its Friday’s losses were covered in the expiry session, while a fresh round of short covering is seen above 59,600. Dips below 58,900 are likely to be bought for 59,600 target with support seen sub 58,600.
Stocks To Buy on Wednesday
On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks – HCL Technologies Ltd, Nestle India Ltd, and NTPC Ltd.
HCL Technologies Ltd (BUY): LCP: ₹1,720; SL: ₹1,668; TGT: ₹1,830
A polarized support at a 5 year rising trendline clubbed by a 52 week long sloping trendline breakout from a correction has now put HCLTECH in spotlight for traders as well as investors. Stock has entered a comfortable set up with sustaining above 200 DMA for the past 2 months now.
Nestle India Ltd (BUY): LCP: ₹1,303; SL: ₹1,270; TGT: ₹1,400
A 15-month cup and handle formation has broken out on daily as well as weekly charts. Given the FMCG and defensive stocks tailwinds, initial target on the same open up for a new all time high above 1390+
NTPC (BUY): LCP: ₹344; SL: ₹336; TGT: ₹373
Multiple attempts of reversal are witnessed at a 50% retracement mark on NTPC of the rally it witnessed between start of December and start of January. Stock is forming a flag pattern and ready for a lift off above 345 zone for a fresh swing high to 373+.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
