Stock market today: Indian stock markets initially opened lower but then bounced back, trading flat at the time of this report on Wednesday following India’s anti-terror operations in Pakistan.
The Nifty 50 index started off with a drop of 146 points at 24,233.30, reflecting a decrease of 0.60%, while the Sensex began at 79,948.80, down by 692.27 or 0.86%. However, the indices quickly recouped their losses.
Analysts pointed out that Indian markets might respond negatively to the increased tensions at the border that unfolded last night. It is noted that what differentiates “Operation Sindoor” from the market’s point of view is its precise and non-escalatory approach. We will need to observe how the opposing side reacts to India’s targeted strikes. The market is expected to remain unaffected by any retaliatory actions from India, as such outcomes were already anticipated and factored into market considerations.
The primary driving force behind the market’s resilience in India is the steady foreign institutional investor (FII) buying witnessed over the past 14 trading sessions, which has reached a total of ₹43940 crores in the cash market.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50
Despite trading at 4.5 month highs, Nifty 50 has been facing supply between a polarised resistance zone between 24,400 – 24,650 odd. This supply net could allow a retest support band of 23,900- 24,000 odd first before deciding further course of action on the index. Since the geopolitical tensions have erupted 2 weeks ago, the index has been confined with a 2% range. For the first time in past 7 trading days, the index has closed below its previous day’s low showing signs of short term weakness.
Bank Nifty
On the Bank Nifty we had reiterated a range of 54,200 – 56,000 last week that full range has been played out for the past 2 weeks now, a break of 54,200 which is likely now, could allow a further grind towards 53,500 / 53,100 on the downside. Outperformance of Bank Nifty against the Nifty 50 has ended from the day of border tensions emerging as markets consolidate with a negative bias to learn the course of action ahead.
Stock Picks: Stocks To Buy on Wednesday- Sagar Doshi
On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks – Divis Laboratories Ltd, HCL Technologies Ltd, and Marico Ltd.
Divis Laboratories (BUY): LCP: ₹6,161; SL: ₹5,900; TGT: ₹6,600
A 6 month consolidation is breaking out on charts of Divis Lab with the stock has given a breakout from the same in last week’s trade. This marks an end to the ongoing consolidation while upside can open up for 8-10% in the short term as stock reach all time highs.
HCL Technologies (BUY): LCP: ₹1,597.10; SL: ₹1,536; TGT: ₹1,725
An inverted head and shoulder formation is seen on daily charts where the stock is awaiting for a breakout of the neckline visible at 1600 odd levels. A higher low formation shows early signs of this breakout coming in the short term for targets of 200 DMA resistance floating near 1725 – 1735 band.
Marico (BUY): LCP: ₹720.10; SL: ₹694; TGT: ₹780
Marico share price has given highest ever closing on daily charts on the first trading day of this week. In an uncertain scenario wherein mid and smallcap names have been facing the heat, FMCG is a pack wherein money is seen to be flowing. Marico being at an all time high while the market isn’t shows early signs of smart money movement.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
