Stocks to buy: Sagar Doshi suggests Amber Enterprises, Lloyds Metals, Bank of Maharashtra shares to buy

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, began the day on a positive note on Wednesday, following the upward trend seen in their Asian counterparts, in anticipation of the US Federal Reserve's policy announcement later today.

As of 9:15 IST, the Nifty 50 increased by 0.18% to 25,982, while the BSE Sensex climbed 0.04% to 84,663.68. Most Asian markets experienced gains, with MSCI's broadest index for Asia Pacific stocks outside Japan rising by 0.5% amid renewed optimism regarding artificial intelligence.

Attention is also directed towards the Fed's rate announcement. According to CME's Fed Watch Tool, the markets are anticipating a 99.9% likelihood of a 25-basis-point rate reduction.

Typically, lower interest rates in the US render emerging markets like India more appealing to foreign investors.

Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group

Nifty 50

After an outside bar formation of Tuesday, Nifty 50 ended with a doji formation as market await FOMC outcome tonight. Support continues to be seen at 25,400 odd where a retest of its earlier cup and handle breakout could possibly be seen if global tailwinds do not lift up market sentiment post Fed meet.

Bank Nifty

Bank Nifty after correcting nearly 1,000 pts from its recent highs - has now closed at the highest point ever. A break of yesterday’s highs and low point can now act as a short term trend trigger. An important point to be watched for this week’s/month’s closing is seen at 57,869. Any closing above or below is likely to guide for Bank Nifty’s medium term trend.

Stocks To Buy on Wednesday

On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks - Amber Enterprises India Ltd, Lloyds Metals and Energy Ltd, and Bank of Maharashtra.

Amber Enterprises India (BUY): LCP: ₹8,526; SL: ₹8,300; TGT: ₹9,060

After having closed at the highest ever daily and weekly reading – stock has been showing signs of a further follow up move northwards. Amber Enterprises has ended its 4 week consolidation now scales higher to fresher all time highs.

Lloyds Metals and Energy Ltd (BUY): LCP: ₹1,319; SL: ₹1,290; TGT: ₹1,435

An inverted head and shoulder pattern has been formed on daily charts of Lloyds Metals, stock has reclaimed above its 200 DMA. Adding to this, on daily and lower timeframe charts, stock has also given a breakout from its flag pattern formation eyeing for a quick 7-8% style rally.

Bank of Maharashtra (BUY): LCP: ₹60; SL: ₹57.3; TGT: ₹66

A cup and handle pattern on daily and weekly charts has given a breakout on charts of Bank of Maharashtra, which was in consolidation from the start of this calendar year. Stock has recovered nearly 50% from its low’s seen in April and continues to enjoy similar momentum in the way forward.

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.