Stock market today: India’s stock benchmarks began the day on a positive note on Wednesday, driven by better-than-anticipated earnings from the major infrastructure company Larsen & Toubro.
The Nifty 50 increased by 0.28% to reach 24,890.4 points, while the BSE Sensex rose by 0.32% to hit 81,594.52 as of 9:15 IST.
At the same time, investors are likely to tread carefully in anticipation of the Federal Reserve’s policy announcement later today, as well as due to worries regarding a possible India-U.S. trade agreement.
On the technical front, Sagar Doshi of Nuvama believes Nifty 50 is yet not out of the woods and currently stands at the retest of head and shoulder breakdown. Doshi recommends three stocks to buy today. Here’s what he say about the overall market.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50
Nifty 50 recovered all of its previous day’s losses as the initial pattern target of bearish head and shoulder breakdown was seen completing at 24,600. A short covering move was seen ahead of monthly expiry due tomorrow. Nifty 50 is yet not out of the woods and currently stands at the retest of head and shoulder breakdown. Only a close above 25,010 negates any potential down move while another 400 pt downside can commence if Nifty 50 closes below 24,600. Hence, for the balance of this week, we are estimating for a rangebound trade between 24,600 – 25,010.
Bank Nifty
Bank Nifty has been nearing its 5 month rising trendline support at 55,800 odd as the index continues to outperform Nifty 50 since the start of this calendar year. On hourly charts as well, the index gave a break below its rising channel in the start of this week but pulled back in reinstating its underlying strong amongst insides. Trend on Bank Nifty remains positive for a move towards 56,800 / 57,100 unless a close below support of 55,800 is not confirmed on daily charts.
Stock Picks: Stocks To Buy on Wednesday- Sagar Doshi
On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks – Jindal Steel & Power Ltd, Ajanta Pharma Ltd, and Godrej Agrovet Ltd.
Jindal Steel & Power (BUY): LCP: ₹984; SL: ₹950; TGT: ₹1,080
Countering the broader market trend, stock was up over 4% in last week’s trading as it broke out from its 1 year trendline. Currently the price is retesting its 1 year trendline breakout for an up move towards previous all time highs.
Ajanta Pharma (BUY): LCP: ₹2,823; SL: ₹2,720; TGT: ₹3,080
Stock has broken out from a 10 month falling trendline on daily charts along with this it indicates a breakout from a 6 month consolidation / base formation on weekly charts for atleast a 8-10% upside from CMP. Adding to this, stock has also given a crossover above its 200 DMA in mid-June and has been holding above the same which is a positive sign.
Godrej Agrovet (BUY): LCP: ₹843; SL: ₹810; TGT: ₹925
Breaking out from its 1 year consolidation, stock has also given a bullish cup and handle pattern breakout on daily and weekly charts. A retest of the breakout has also played out at the start of this week as broader marked cooled off. Stock is now open to hit at least 10% as its initial target on the upside.
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.
