Stock market today: On Wednesday, the main domestic indices, Nifty 50 and Sensex, started on a positive note, with both trading in the green as the tariff threats from Trump are viewed as negotiation strategies.
The Nifty 50 index kicked off the session at 23,801.75, rising by 62.50 points (0.26%), while the Sensex jumped 120.79 points (0.15%) to begin at 78,704.60. Encouraging signals from certain sectors and investor optimism contributed to boosting the market at the opening bell.
Market analysts pointed out worries about global economic instability, especially in relation to US trade policies. They noted that corporations and governments are carefully analyzing the effects of Donald Trump's initial term to evaluate the risks associated with a possible trade war.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the stock market's remarkable ability to surprise was clearly shown by the 1.8% increase in the Sensex yesterday. This sharp market recovery underscores the widely held belief that timing the market is challenging, and what truly matters is having a long-term presence in the market.
Currently, two factors are driving the market's direction. First, the market views Trump’s tariff threats as bargaining chips, which may not escalate into a full-scale trade war. Second, the potentially positive effects of the transformative Budget are gradually being recognized in the market.
Nifty 50 has commenced its short covering rally after a close above 23,000 last week. The index has now ended at a fresh 1 month closing high. Along with this the index has given a bullish head and shoulder breakout on daily charts wherein it took support at the 5 year trendline between 22,800 – 22,650. For now the index is on its way to hit its 200 DMA resistance just above the 24k mark while any dips near 23,600 should be used to add / buy on dips to participate in the extended short covering rally.
Bank Nifty has been finding buyers interest due to macro-economic action by the central bank aiming at infusing liquidity into the system. The index has entered buy on dip mode ever since its double bottom formation on daily charts last week. A wide ‘W’ pattern breakout is being witnessed on daily charts of Nifty. Targets for the same are open to hit 50,500 / 50,850 on the upside with dips near 49,800 acting as buy on dip zone. Bank Nifty as well has given a close at 4 week high.
On stocks to buy or Sell on Wednesday, Sagar Doshi of Nuvama recommended three stocks - Aditya Birla Fashion and Retail Ltd, L&T Finance Ltd, and Tech Mahindra Ltd.
LCP: ₹285.65
SL: ₹278
TGT: ₹305
A 4 month sloping trendline breakout has been seen on daily charts of Aditya Birla Fashion and Retail. Along with a ‘W’ formation breakout is seen on charts wherein the stock has ended at a 1 month closing high. Targets can be seen 6-9% higher from CMP, wherein stock could meet resistance of 200 DMA at 305 on the upside.
LCP: 152.03
SL: 146
TGT: 160
Range breakout has been seen on charts of L&T Finance. The stock had been trading in a rectangular range for the past quarter which has given a breakout on the higher side. Another 5-7% upside can continue on the same side given the tailwind the sector is witnessing ahead of the RBI Policy scheduled later this week.
LCP: ₹1,654.50
SL: ₹1,604
TGT: ₹1,765
Tech Mahindra has taken polarity support earlier this week along with the improvement in market sentiment. This support stands at 1620 on daily charts which is allowing buyers to provide support in the scrip. On the upside, 1760-1770 can be seen as an achievable targets for this reversal trade to be played out.
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.
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