Stock market recap: The Indian equity benchmarks concluded Wednesday's session on a mixed note, with Nifty 50 managing a marginal 0.07% gain to settle at 25,953.85, while Sensex snapped its three-day winning streak, slipping 0.05% to close at 84,233.64.
The session was characterized by a sharp divergence in sectoral performance. A robust rally in auto and PSU banking, buoyed by stellar Q3 results from Eicher Motors (+6.45%) and SBI (+3.23%), was largely offset by a broad-based selloff in the IT sector, led by TCS and Infosys.
Market breadth tilted slightly favouring the bears, with an advance-decline ratio of approximately 1:1.1, as 1,485 stocks advanced and 1,683 declined on the NSE.
Technically, the index continues to face stiff psychological resistance at 26,000, forming a consolidation pattern that suggests a "wait-and-watch" approach among institutional players. Macroeconomic sentiment remained cautiously optimistic following the recent India-US trade framework, though volatility persists ahead of global inflation data.
Two stock recommendations by MarketSmith India:
Buy: Craftsman Automation Ltd (current price: ₹8,100)
- Why it’s recommended: Strong presence in automotive components, diversified across auto segments, growing non-auto industrial business, strong client base (OEM focused), increasing premium vehicle exposure, consistent revenue growth trend, improving capacity utilisation, high entry barriers in precision casting, focus on value-added products, and long-term industry growth tailwinds.
- Key metrics: P/E: 53.46, 52-week high: ₹8,220.00, volume: ₹95.95 crore
- Technical analysis: flat base breakout
- Risk factors: High dependence on auto sector, cyclical demand risk, OEM client concentration, margin pressure from raw materials, high debt levels, capex-heavy business model, execution risk in expansions, EV transition disruption risk, global slowdown impact, working capital intensity.
- Buy: ₹8,070–8,140
- Target price: ₹9,350 in two to three months
- Stop loss: ₹7,600
Buy: TVS Motor Company Ltd (current price: ₹3,860)
- Why it’s recommended: Strong brand and market presence, diverse product portfolio (2W & 3W), growing export markets, focus on premium & electric bikes, strong distribution network, healthy operational cash flows, consistent R&D investment, cost optimisation initiatives, improving dealer financing, and expansion into new geographies.
- Key metrics: P/E:285.62, 52-week high: ₹3,909.00 volume: ₹434.10 crore
- Technical analysis: cup with handle base breakout
- Risk factors: High dependence on domestic 2W demand, cyclical automotive industry risk, intense competition pressure, commodity price volatility, dealer & inventory risk, regulatory & emission norms risk, FX fluctuations on exports, EV adoption cost challenges, capex and scaling risk, and margin pressure from pricing competition.
- Buy at: ₹3,840–3,880
- Target price: ₹4,450 in two to three months
- Stop loss: ₹3,650
Nifty 50 recap
On Wednesday, Indian equities ended on a muted note, with Nifty 50 gaining 18.70 points (+0.07%) to close at 25,953.85 after a range-bound session, oscillating between 25,899 and 26,009. The Sensex also traded largely flat, mirroring the cautious undertone.
Market breadth remained negative, with 1,481 advances against 1,682 declines, indicating selective buying despite headline index stability. Sectorally, IT emerged as a key drag, with Nifty IT declining 1.76%, while strength in Auto (+1.30%), Pharma (+1.01%), PSU Banks (+1.03%), and Healthcare (+1.62%) provided support. Midcap healthcare and select consumer durable names saw notable traction, pointing to stock-specific action. Private banks were marginally subdued, capping broader gains.
From a technical standpoint, Nifty 50 is showing early signs of stabilisation after the recent corrective phase, supported by improving price action on the daily chart. The index formed a higher low over the past few sessions and closed above its short-term moving averages, indicating a gradual shift from a sell-on-rise structure to a consolidation-with-positive-bias setup. Momentum indicators are also turning constructive.
The RSI has rebounded sharply from near-oversold territory and is now placed around the mid- to high-50s, reflecting improving buying strength without entering overbought territory. Meanwhile, the MACD has witnessed a bullish crossover, with the histogram turning positive, highlighting a pickup in upward momentum.
According to O’Neil’s methodology of market direction, the Indian equity market has transitioned from a Downtrend to a Rally Attempt, indicating an early improvement in the near-term market tone.
The index delivered a decisive close above its 50- and 100-DMA in a single move, underscoring a sharp improvement in near- to medium-term sentiment. However, following the recent euphoric single-day rally, the market is likely to enter a consolidation as it digests gains and attempts to build a healthy base at higher levels.
Such stabilization would be constructive for the sustainability of the ongoing uptrend. On the downside, 25,400–25,100 is expected to act as an immediate cushion, where buying interest may emerge on declines.
On the upside, 25,800–26,000 represents a strong hurdle for the index, given the supply seen near higher levels. A sustained close above 26,000 would be a key technical trigger and could open the door for further upside toward 26,300–26,400 in the near term.
How did Nifty Bank perform?
Nifty Bank demonstrated resilient performance in today’s session, recovering from early volatility to close at 0.20% higher at 60,746.10. The index benefited from a distinct "buy-on-dips" sentiment, successfully reclaiming lost ground after testing an intraday low of 60,444.65.
This upward momentum was primarily anchored by State Bank of India (SBI), which surged 3.23% to a record high on the back of stellar quarterly earnings, providing the necessary tailwind for the broader banking gauge. While private sector heavyweights like HDFC Bank and Federal Bank faced moderate selling pressure, the index was bolstered by steady gains in Axis Bank and ICICI Bank.
From a technical perspective, Bank Nifty ended the session in a consolidation phase, reflecting fatigue after the recent recovery. Price action on the daily chart shows a narrow-bodied candle with a lower close, indicating intraday selling pressure at higher levels.
The index has been oscillating around its short-term moving averages, highlighting indecision and a lack of immediate directional follow-through. Momentum indicators are gradually improving. The RSI has rebounded from lower levels and is now hovering close to 60, signalling strengthening momentum without entering overbought territory.
This points to a constructive undertone, even as the pace of gains has slowed. Meanwhile, the MACD is showing early signs of a bullish reversal, with the histogram turning positive and the signal lines converging, indicating a potential pickup in upside momentum.
Immediate support for Nifty Bank is placed near 60,500–60,400, aligned with key moving averages of 21- and 50-DMA, respectively. On the upside, resistance is seen near 61,000, and a decisive breakout above this level could open the door toward 61,500–62,000 in the coming sessions.
Based on the current technical structure, improving momentum indicators, and stable broader market sentiment, Nifty Bank is likely to remain range-bound with an upward bias in the near term. Sustained buying above resistance could trigger fresh upside, while dips toward support may continue to attract accumulation.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.