Indian equity benchmarks traded firmly higher on Wednesday, demonstrating resilience despite renewed tensions between the United States and Iran. Gains in FMCG, oil & gas, financial, and IT stocks helped support market sentiment, keeping the benchmark indices in positive territory.
The broader market mood remained constructive, with most sectoral indices trading in the green, signalling widespread buying. Defensive sectors led the advance, with FMCG stocks emerging as the top gainers, while financial services, information technology, and oil & gas counters also contributed to the upmove. In contrast, weakness was largely confined to metal stocks and select media names.
As of 14:00 IST, the Nifty 50 was up 0.5% at 23,352.40, while the BSE Sensex gained 0.7% to 74,387.03. The market’s ability to hold gains despite geopolitical uncertainty suggests investors remain focused on domestic fundamentals, with leadership shifting towards defensive and large-cap sectors.
Over the last few trading sessions, the Nifty 50 has traded within a range, suggesting it is in a consolidation phase. However, it has found support around the 23,100-23,000 zone, which is the 61.8% retracement level of the previous upmove from 22,182 to 24,600. On the higher side, the 20 DEMA hurdle is at 23,550, and the 50 DEMA is at 23860. We expect the index to consolidate within this range in the near term. Hence, it is advisable to trade with a stock-specific approach in the near term and look for sectors and stocks which are showing relative outperformance.
Shares to buy or sell in the near-term – Ruchit Jain
On shares to buy or sell in the near-term, Ruchit Jain recommends Grasim Industries Ltd, and Bank of Maharashtra.
Grasim
The stock had recently broken out of a long consolidation following its quarterly results announcement. The breakout was supported by high volume, and the stock is now showing signs of resuming its momentum from the 20 DEMA support. Positional traders can look to buy the stock around the CMP of Rs. 3108, targeting a potential upside of around Rs. 3250. The stop loss on long positions should be placed below Rs. 3034.
Bank of Maharashtra
The PSU Banking space has started showing a positive trend post a corrective phase. Within the sectoral stocks, Bank of Maharashtra seems to have completed its time-wise corrective phase and has resumed its uptrend. The stock has been a relative outperformer in the sector recently and could see near-term momentum. Short-term traders can buy the stock at Rs. 84-83, with a potential target of around Rs. 93. The stop loss on long positions should be placed below Rs. 79.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
