Stock market today: The domestic benchmark indices started off relatively unchanged on Wednesday, following slight increases in the previous session that were primarily driven by IT stocks after the partnership between Infosys and Anthropic was announced.
As of 9:15 IST, the Nifty 50 increased by 0.11% to 25,752.65, while the Sensex gained 0.12% to reach 83,553.59.
Fifteen out of the sixteen key sectors opened in the positive territory, although the increases were minimal. The broader small-cap and mid-cap indices each rose approximately 0.2%.
Experts anticipate continued consolidation in the indices due to the lack of significant catalysts.
On Tuesday, both the Nifty 50 and Sensex saw a rise of about 0.2%, with the IT index climbing 1% as investors responded positively to the promising potential for AI-driven deal activity following Infosys’s collaboration with Anthropic.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50
Nifty 50 ended +1% higher cumulative for the first 2 days of this week after its weaker closing on Friday on daily charts, however the larger timeframe, weekly and monthly charts remained unscathed. Nifty 50 is seen as a buy in dip candidate below 25,650 for targets of 25,840 / 25,940. These are specifically short term levels as the broader range remains within a 4% band for the past couple of months.
Bank Nifty
Bank Nifty continued its outperformance, posting the highest closing ever on daily charts just after the highest ever closing seen on weekly charts on Friday and a fresh all time high daily closing on Monday. Bank Nifty saw buying emerge from similar broad range where it experienced demand couple of times in the past 3 months. Bank Nifty as well posted an engulfing bullish pattern on Monday wherein it opened below its previous day’s low, and closed above its previous day’s high. This can continue to head towards 61,500 odd with 60,450 seen as support.
Stocks To Buy on Wednesday
On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks – Sona BLW Precision Forgings Ltd, Power Finance Corporation Ltd (PFC), and NLC India Ltd.
Sona BLW Precision Forgings (BUY): LCP: ₹529; SL: ₹505; TGT: ₹580
Stock has formed a bullish pin bar while concluding a consolidation phase, suggesting a potential pole and flag breakout structure. Momentum bias remains upward with upside targets near 580. The recent swing low dated 6th February provides a logical technical stop loss level, maintaining favourable risk reward if price sustains above breakout zones.
PFC (BUY): LCP: ₹416; SL: ₹399; TGT: ₹455
After reclaiming its 200 DMA earlier this month, PFC continues to show sustained buying momentum despite corporate developments/announcements. Consecutive closes above prior day highs and a fresh 7 day high indicate strengthening trend continuation. The breakout above an 18-month falling trendline toward end January supports a bullish structure likely to extend higher.
NLC India (BUY): LCP: ₹261; SL: ₹249; TGT: ₹282
Stock has held firmly above its 200 DMA for nearly two months while developing a compression pattern, indicating potential energy buildup. Early signs suggest a move toward downward sloping 18 month resistance near 280. Elevated volumes during the last trading hour yesterday reinforce participation, supporting a tactical buy view targeting approximately 7 to 8% upside.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
