Stock market today: The Indian stock market started on a high note on Wednesday, buoyed by reduced geopolitical tensions and hopes of a potential interest rate cut by the US Federal Reserve.
Investors found reassurance in the first conversation between US President Donald Trump and Prime Minister Narendra Modi since June, which indicated improving ties.
The Nifty 50 index opened the day at 25,276.60, rising by 37.50 points or 0.15 percent, while the BSE Sensex began at 82,498.97, up by 118.28 points or 0.14 percent.
Market analysts highlighted that optimism is growing regarding India as trade negotiations with the US have resumed. A US trade delegation is currently in India, and discussions that lasted over seven hours were described as “positive” by both parties, which is viewed as a favourable factor for investor confidence.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50
Nifty 50 on Tuesday closed at 2 months high amid positive cues from US-India trade talks headline and from here on, we expect some consolidation between 25,000-25,300 levels. The next decisive move is expected after Thursday as FED interest rate decision is due on Wednesday (after-market hours).
Bank Nifty
Bank Nifty as well ended with ~250 pt gain after breaking above its 20 DMA. The index remains open to scale up for 56,200 while support remains at 54,100.
Stocks To Buy on Wednesday
On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks – Eicher Motors, JSW Infrastructure, Manappuram Finance shares to buy today.
Eicher Motors (BUY): LCP: ₹6,927; SL: ₹6,720; TGT: ₹7,300
Stock is currently undergoing very strong momentum with higher-than-average volumes on up days. This indicates strong signs of accumulation. We expect next burst of up move to commence above 6950 for the target of 7300-7400.
JSW Infrastructure (BUY): LCP: ₹326; SL: ₹310; TGT: ₹370
Stock has broken out of a downward sloping trendline with highest daily volume in 2 months. Such breakouts backed by strong volumes tend to gather strong momentum. The follow through move in this counter is expected to take stock to a new all time highs which is only 10% away.
Manappuram Finance (BUY): LCP: ₹296; SL: ₹286; TGT: ₹340
Stock has been trading at its all-time high levels owing to strong underlying momentum in gold prices. We expect the momentum to continue and a close above 300 can lead to another 8-10% rally.
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.
