Stock market today: Equity benchmark indices Sensex and Nifty 50 were witnessing a significant uptick in Wednesday, April 8 afternoon trading, following a notable surge in global markets and a decrease in crude oil prices after a two-week ceasefire was announced by the US and Iran.
The 30-share BSE Sensex soared by 2,988.82 points, or 4%, reaching 77,605.40. The 50-share NSE Nifty climbed by 890.35 points, or 3.85%, hitting 24,014.
In the meantime, the Reserve Bank of India decided to maintain its key policy rate at the same level on Wednesday, taking a prudent wait-and-see approach as policymakers evaluated the implications of the six-week Iran conflict on energy supplies, inflation, and economic growth.
The six-member Monetary Policy Committee of the central bank reached a unanimous decision to maintain the benchmark repurchase rate at 5.25%, citing increased uncertainty following the West Asia conflict, which caused a spike in crude prices, a decline in the rupee’s value, and interruptions in trade flows.
Market Review and Outlook – Ruchit Jain, Head – Equity Technical Research, Wealth Management, Motilal Oswal Financial Services
Our markets have rallied higher post the overnight news flows of reducing geopolitical tensions. In last couple of months, our markets had corrected mainly due to geopolitical tensions, high crude prices and the depreciating INR.
In last one week, the INR had already shown signs of strength and now the crude oil prices have also cooled off post the news. Thus, this is a sign of relief for our markets and the Nifty 50 index has formed a support base near its weekly 200 EMA support which is a sacrosanct level. Thus, traders should look to trade with a positive bias for the near term.
The 50 percent retracement level of this entire corrective phase comes around 24,260 which should be tested soon. On the flipside, 23,500-23,200 will be seen as the immediate support zone now.
Shares to buy or sell today – Ruchit Jain
On shares to buy or sell on Wednesday, Ruchit Jain recommends Jindal Steel, and Ather Energy stock to buy today.
Jindal Steel
The stock had recently given a breakout from a long consolidation phase recently and the prices have retested the range. The previous resistance has now become a support and price upmove have been supported by good volumes. Thus, traders can look to buy the stock in the range of ₹1,200-1,270 for potential target around ₹1,300. The stoploss on long positions should be placed below ₹1,140.
Ather Energy
The stock has shown a relative outperformance in the recent broader market correction. The 50 DEMA has been acting as a support for the stock and the price volume action seems bullish. Hence, traders can buy the stock around ₹780 for potential target around ₹850. The stoploss on long positions should be placed below ₹740.
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.
