Stock market recap: The Indian stock market saw healthy gains on Tuesday, 10 March, after two consecutive sessions of losses that dragged the Sensex and the Nifty 50 down 3% each. The market rebound followed a drop in crude oil prices and recovery in global peers amid hopes that the conflict in West Asia could end soon.
The Sensex jumped 640 points, or 0.82%, to end at 78,205.98, while the Nifty 50 climbed 234 points, or 0.97%, to settle at 24,261.60.
The mid and small-cap segments outperformed strongly. The BSE 150 MidCap Index rose 1.66% while the BSE 250 SmallCap Index jumped 2.04%.
Investors earned ₹6 trillion in a single session, with overall market capitalization of BSE-listed firms rising to ₹447 trillion.
Three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for Wednesday:
Best stocks to buy today (All Buy trades are rates of Equity & Sell rates are based on F&O)
INDIANB: Buy above ₹932, stop ₹890 target ₹1025 (Multiday)
DRREDDY: Buy above ₹1320, stop ₹1270 target ₹1440 (Multiday)
BEL: Buy above ₹465, stop ₹435 target ₹515 (Multiday)
Stock Market Today
On 10 March, NSE benchmarks rebounded strongly after two sessions of steep losses, driven by easing crude oil prices and firmer global cues. At 10:25 am, the Nifty surged 179 points or 0.74% to 24,207.05, while the Sensex gained 557 points to 78,123.67. Shriram Finance, InterGlobe Aviation, and Dr. Reddy’s Laboratories led the rally with gains up to 5%, whereas ONGC and Infosys slipped nearly 2%. Market breadth was positive, with over 2,500 stocks advancing against 832 declines.
Fourteen of sixteen sectoral indices traded higher, though IT and oil & gas lagged. Midcap and small-cap indices rose up to 1.5%. The rebound followed Brent crude’s sharp fall to $93.83 per barrel after peaking near $120, amid hopes of easing West Asian tensions. Global markets also rallied, with Asian and US indices closing higher. India VIX dropped 12% to 20.48, signalling reduced volatility, while the rupee strengthened to 92.14 against the dollar.
Outlook for trading
Markets moved broadly in line with our previous note, where we said: “…the push above the supports on the weekly chart having given way at 24,300 could now see that level act as resistance.”
Despite a sharp recovery on Tuesday, expiry day action suggests that the broader trend remains cautious. Market sentiment continues to be mixed and the overall structure subdued. The rallies seen so far appear to be intermittent relief moves rather than a sustained shift in trend, and should not be interpreted as a fresh buying opportunity.
A look at the chart below indicates that any revival is likely to face resistance across the multiple gaps that have been created on the downside. Unless the negative news flow recedes meaningfully, rises into these gap zones are likely to attract selling interest.
We therefore maintain our view that the market will remain under pressure. The preferred strategy continues to be selling on rallies unless the index decisively crosses 24,400 on the upside, while 23,500 remains a well-tested support level.
There is some relief from global cues, but macroeconomic uncertainties are weighing on the recovery for now. Expectations should remain tempered as market trends continue to look fractured. With broader market sentiment still cautious, the focus should be on sectors that are showing relative resilience in the near term.
The supports on the weekly chart having given away at 24300 it could now play the role of resistance. The last week started and ended on a negative note signalling that the trends shall remain pressured.
Ahead of weekly expiry the trends remain pressured with the Max pain at 24100 thus forcing us to wait for a closing above this zone for the next couple of days for sustenance of the recovery seen on Monday after a sharp gap down opening.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
INDIANB (current market price ₹929.75) - Buy above ₹932, stop ₹890 target ₹1025 (Multiday)
- Why it’s recommended: Indian Bank (INDIANB) is an Indian public sector bank. Profit booking over the last few days have now led to a fresh buying emerging at lower levels. This sector has always been in demand as there is continued attention to all companies associated with the PSU banking sector. In the current year the stock has seen a sharp upside and the steady support offered by the KS line has ensured that the momentum is retained, we can consider that the trends are poised to move higher. Go long.
- Key metrics:
- P/E: 79.11,
- 52-week high: ₹1000,
- Volume: 1.63M
- Technical analysis: Support at ₹880, resistance at ₹1050.
- Risk factors: Credit risk, regulatory compliance, and economic conditions. As a public sector bank, it is subject to specific challenges related to asset quality.
- Buy : above ₹932.
- Stop loss: ₹890.
- Target price: ₹1025. (2 Months)
DRREDDY (current market price ₹1,314.60) - Buy above ₹1320, stop ₹1270 target ₹1440 (Multiday)
- Why it’s recommended: Dr. Reddy's Laboratories Ltd, founded in 1984, is a leading Indian multinational pharmaceutical company headquartered in Hyderabad, focusing on affordable, innovative medicines across 70+ countries. A surprise in Q3 earnings has ensured that the recent highs are not given up and recent dips that are emerging to stage a sharp revival leading to a strong upward traction. The long body candle seen on Sunday despite large scale volatility highlights that we can look for a push to higher levels. Go long now.
- Key metrics:
- P/E: 23.51,
- 52-week high: ₹1377.95,
- Volume: 2.33M.
- Technical analysis: Support at ₹1150, resistance at ₹1500.
- Risk factors: Intense US pricing pressure, regulatory scrutiny (US FDA observations), and product concentration.
- Buy : above ₹1320
- Stop loss: ₹1270
Target price: ₹1440 (2 Months)
BEL (current market price ₹463.35) - Buy above ₹465, stop ₹435 target ₹515 (Multiday)
Why it’s recommended: Bharat Electronics Ltd (BEL) is a Bengaluru-based Navratna PSU under the Ministry of Defence, established in 1954 to indigenize defence electronics. With the war in focus this counter is seen buzzing and the last few days have been quite erratic, however at lower levels we are finding steady buying interest and this has pushed the prices higher once again. As momentum is holding steady we can consider this as one of the best performing stocks that could show more progress to the upside as market revives to explore the bullish potential. Buy.
- Key metrics:
- P/E Ratio: 29.67
- 52-week high: ₹770
- Volume: 19.4M
- Technical analysis: Support at ₹685, resistance at ₹800.
- Risk factors: Heavily reliant on government policy and budgetary allocations, managing large, complex, long-term contracts.
- Buy : above ₹467.
- Stop loss: ₹435.
- Target price: ₹515. (2 Months)
Raja Venkatraman is co-founder, NeoTrader.