Stock market today: India’s stock market indices began the day with little change on Wednesday, as the rise in shares of leading private bank HDFC Bank countered general declines following data indicating an increase in US inflation. Experts noted that concerns regarding tariffs also caused investors to adopt a cautious approach.
The Sensex fell by 103.16 points to reach 82,467.75 during early trading, while the Nifty 50 decreased by 56.75 points to stand at 25,139.05.
Sagar Doshi from Nuvama anticipates that Nifty 50 will exhibit a rangebound trade between 25,000 and 25,300. Doshi recommends three stocks to buy today. Here’s what he says about the overall market.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50
Nifty 50 has reclaimed above its previous day’s high after taking support at the psychological 25,000 mark. The index faced pressure on the first trading day of this week as it continued to slide with initial downside target of 25,000 has been met and fresh upside opens up only on further closing above 25,325. So for the balance of this week, a rangebound trade between 25,000 – 25,300 is expected to unfold.
Bank Nifty
Bank Nifty on the other hand ended at a 4 day closing high after it did not close below its immediate support of 56,750 for 2 consecutive days despite being challenged in intraday trades. Only a close below 56,750 is going to allow further downside on the index marking a temporary pause to this outperformance in the index. Hence, view remains outperformance against Nifty 50 and a slow path northwards to make a fresh all time high.
Stock Picks: Stocks To Buy on Wednesday- Sagar Doshi
On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks – Voltas Ltd, Samvardhana Motherson International Ltd, and JK Tyre & Industries Ltd.
Voltas Ltd (BUY): LCP: ₹1,396.60; SL: ₹1,350; TGT: ₹1,500
Voltas share price has ended at the highest point for the current fiscal despite media reports of A/C demand not growing as the markets continue to price in limited downside from current levels on the stock. Technically, the stock has broken out from its 3 month sideways consolidation and is now headed for a 6-8% rally.
Samvardhana Motherson (BUY): LCP: ₹156; SL: ₹150; TGT: ₹170
With Samvardhana Motherson share price giving a fresh crossover above its 200 DMA resistance, on daily charts the pattern suggest a bullish head and shoulder pattern formation along with a short term pole and flag pattern breakout already seen on the same. Momentum is likely to pick up above 159 on the stock.
JK Tyre (BUY): LCP: ₹371.30; SL: ₹355; TGT: ₹410
6 week long consolidation is now nearing an end on charts of JK Tyre share price as the stock has been on the verge of multiple breakouts. A bullish pole and flag pattern breakout is already confirmed on daily charts while a strong trendline breakout which has been in place for the past 18 months now is now being challenged due to the tailwind thrust by its ongoing breakout. Charts are likely to open up for a larger target once the stock sustains above 385, however for now we are eyeing for a 9-11% style rally from CMP.
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.