Stock market recap: Indian equities closed largely unchanged on Wednesday, as benchmark indices moved in a narrow range throughout the session. The Sensex slipped 40 points to settle at 84,233.64, while the Nifty edged up 18.7 points to finish at 25,953.85. Market breadth was slightly negative, with 1,882 stocks advancing, 2,165 declining, and 148 remaining flat.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
Voltas (Cmp ₹1506.50)
- Why it’s recommended: Voltas Ltd, a Tata Group company established in 1954, is India’s leading air conditioning & cooling products manufacturer and a major engineering solutions provider, specializing in HVAC, electro-mechanical projects. After descending for a while the strong Q3 numbers are seen helping a rise. The sharp declines seen since last few days have been laid to rest with a robust Q3 that has held on to the supports around 1280 leading to a strong recovery. On the Daily charts we also found a double bottom getting formed leading to a sustained revival. With a push beyond the cloud region and a strong upside has emerged in the previous trading sessions. Buy.
- Key metrics:
- P/E Ratio: 103.88
- 52-week high: ₹1530
- Volume: 1.8M
- Technical analysis: Support at ₹1400, resistance at ₹1600.
- Risk factors: Intense competition, potential working capital strain, slow long-term growth, and high valuation concerns.
- Buy : above ₹1510.
- Stop loss: ₹1460.
- Target price: ₹1635. (2 Months)
SHRIRAMFIN (Cmp 1056.80)
- Why it’s recommended: Shriram Finance Ltd. (SHRIRAMFIN) is India’s largest retail Non-Banking Financial Company (NBFC) and the flagship of the Shriram Group, specializing in financial inclusion by offering diverse loans (CV, auto, gold, MSME) and fixed deposits to millions of underserved customers. The stock is showing some strong runup ahead of its Q3 numbers. The recent highs are not giving up and recent dips that are emerging on intraday timeframe is producing a rebound to a strong upward traction. A bullish Kumo crossover suggests that we could see if strong upmove if the recent value resistance around 1030 is held suggesting that we can consider going long now.
- Key metrics:
- P/E: 360,
- 52-week high: ₹1069.15,
- Volume: 4.9M.
- Technical analysis: Support at ₹971, resistance at ₹1200.
- Risk factors: Asset quality, interest rate fluctuations, and overall economic sensitivity.
- Buy : above ₹1060
- Stop loss: ₹1022
- Target price: ₹1145 (2 Months)
KAYNES (Cmp 4154.70)
Why it’s recommended: Kaynes, after a sharp drawdown, reported a modest Q3 revenue growth and margin pressure due to higher costs and operational challenges, but demand for bromine and industrial salt remains robust. Strategic projects in semiconductors and energy storage are progressing, with SOP and derivatives businesses expected to ramp up in FY27. The declines since last few weeks seems to be bottoming out with bad news being factored in. Go long.
- Key metrics:
- P/E Ratio: 114.33
- 52-week high: ₹7705
- Volume: 3.57M
- Technical analysis: Support at ₹3750, resistance at ₹4500.
- Risk factors: High customer concentration, dependence on imported raw materials subject to foreign exchange volatility, working capital intensive operations.
- Sell : below ₹4160.
- Stop loss: ₹4080.
- Target price: ₹4450.
Stock market recap
Indian equities closed largely unchanged on Wednesday. The Sensex slipped 40 points to settle at 84,233.64, while the Nifty edged up 18.7 points to finish at 25,953.85. Market breadth was slightly negative, with 1,882 stocks advancing against 2,165 declines, and 148 remaining flat.
Among Nifty constituents, Eicher Motors, Apollo Hospitals, Max Healthcare, SBI, and Maruti Suzuki emerged as notable gainers, while Coal India, TCS, HCL Technologies, Eternal, and Infosys weighed on sentiment. Midcap and smallcap indices mirrored the benchmark’s muted tone, ending flat.
Sectoral performance was mixed: the Auto index surged 1.3%, PSU banks and pharma gained 1% each, and consumer durables rose 0.5%. In contrast, IT stocks came under pressure, with the sector index slipping 1%. Overall, the market reflected cautious investor sentiment ahead of key global and domestic triggers.
Outlook for Trading
Despite the best attempt the indices had a volatile trading session that could lead to more demands from the market. Currently , the bullish resolve is showing more promise and holding the indices. With Nifty and Bank Nifty showing some signs of revival, we can see that the higher levels are bringing in some hurdles to contain the strong upward drive.
Large-scale volatility shall continue to demonstrate that the trends need more triggers as they are currently taking a breather post the recent swings on either side. While the intraday action remains limited ; however, every dip is seeing some bullishness. Overall, the momentum and sentiment is buoyant and the unexpected stretch of positive vibe has begun to spread across the sectors.
The macro news remains a slow trigger to generate some momentum, the broader indices over the last two days have seen indices gap up and sustain. This has led to some stock-specific action. This rejuvenated attempt has managed to revive the bullish bias despite the minor hiccups.
The steady higher lows this week gave some confidence, however, the lack of acceleration has left many participants disappointed. We can now see that the valuations as well as the results are going for a toss and almost every metric of measurement is saying that a recovery is in progress. As market unravels the next steps we need to take the trades in a systematic way.
BankNifty has inched higher clearly indicating that the positive vibes are now showing some promise. With the flow of activities showing some resurgence of the trends we can consider that the triggers may give a push higher.
While indices are slowly reviving, we need to see how the supports around 25500 will hold as we have been quoting, the road ahead could remain challenging. Looking at the Option Chain, the scenarios still highlight certain levels that are still circumspect and are witnessing show limited market participation. Nifty continues to move above the next resistance around the 26000 mark, while Bank Nifty aims to hold 60000, as the Options data shows that the trends are showing some possibility to head higher.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
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 making any investment decisions.
