Stock market today: The Indian stock markets began on a high note on Wednesday as investor confidence rose from a further decline in domestic inflation and favorable global signals.
Nevertheless, attention is still on the forthcoming meeting between US President Donald Trump and Russian President Vladimir Putin scheduled for later this week.
As of 10:43 IST, the Nifty 50 increased by 0.35%, reaching 24,572 . 85, while the BSE Sensex climbed 0.22% to 80,415.06.
India’s retail inflation fell to an eight-year low of 1.55% in July, dropping beneath the Reserve Bank of India’s acceptable range of 2%-6%, attributed to decreasing food prices. Market sentiment is optimistic, as the positive indications from a lower CPI figure in India and stable U.S. inflation have bolstered investor confidence, according to analysts.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50
Nifty 50 has been facing resistance in 24,700-24,750 zone which also coincide with a downward trendline resistance. Any major trend reversal expected to happen above 24,800 on closing basis, whereas on downside 24,200 seems to be open. The 200 DMA stands at around 24,000 level, any dip towards this level should be closely watched for major trend support.
Bank Nifty
Bank Nifty also in line with Nifty 50 is following sell on rise template as all intraday rallies are getting sold into the strength. Any major upside trend expected to begin above 55,800 on closing basis. On downside, next strong support in 54,000-54,300 zone.
Stock Picks: Stocks To Buy on Wednesday- Sagar Doshi
On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks – One 97 Communications Ltd (Paytm), Mahindra & Mahindra Ltd (M&M), and Multi Commodity Exchange of India Ltd (MCX).
Paytm (BUY): LCP: ₹1,120; SL: ₹1,080; TGT: ₹1,280
Stock is inching up against broader market weakness and currently trading around near 3-year high. The stock has picked up strong momentum after posting strong set of quarterly results. for the current momentum play we are seeing a 10-15% upside in the current leg itself.
M&M (BUY): LCP: ₹3,236; SL: ₹3,115; TGT: ₹3, 550
Auto stocks has been showing significant resilience against the broader market weakness. The stock has recouped all its losses of last one year, and now is currently trading at around its all time high levels with constructive chart pattern. A close above ₹3,280 can lead to rise in momentum for quick 8-10% gain.
MCX (BUY): LCP: ₹8,151; SL: ₹7,820; TGT: ₹8,800
Stock seems to have completed its consolidation after prior strong up-move. The upward trend looks to continue again as stock breaks out of its consolidation with strong volumes. A quick 8-10% move can be seen on the stock to reclaim its all time high.
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 taking any investment decisions.
