The stock market took a cautious approach on Tuesday as the benchmark Nifty-50 index closed almost unchanged, inching up by 0.03% to settle at 24,335.95. The Bank Nifty also experienced a slight decline, finishing at 55,391.29. While sectors like metals and pharma faced losses, the IT index emerged as a strong performer, contributing positively to the market’s overall sentiment. The broader indices reflected only marginal gains, indicating a period of consolidation.
Market Outlook for Wednesday
Looking ahead, experts suggest that the Nifty 50 index may continue its consolidation phase in the short term. A significant breakout above 24,550 is yet to occur, which is the 61.80% retracement level. On the downside, a solid support level exists at 24,250; a drop below this threshold could trigger increased selling pressure, warns Rupak De, Senior Technical Analyst at LKP Securities. According to Asit C Mehta, the index is anticipated to fluctuate between 54,450 and 56,000 in the near future.
Global Dynamics and Quarterly Earnings
The domestic market displayed a largely range-bound movement, largely due to ongoing geopolitical tensions. However, sustained inflows from Foreign Institutional Investors (FIIs) have buoyed market sentiment, preventing further declines. The mixed results from Q4 earnings reports have raised concerns over potential downward revisions for FY26 forecasts. Vinod Nair, Head of Research at Geojit Investments, notes that these factors may lead to continued consolidation in the market.
Top Stock Recommendations
In light of the current market conditions, analysts have shared several stock recommendations for investors. Sumeet Bagadia, Executive Director at Choice Broking, offers two strong picks, while Ganesh Dongre and Shiju Koothupalakkal from Anand Rathi and Prabhudas Lilladher, respectively, provide insights on additional stocks to consider.
Sumeet Bagadia’s Picks
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Hindustan Aeronautics Ltd: Bagadia advises buying HAL at around ₹4,610, with a stop-loss at ₹4,433 and a target price of ₹4,930. The stock surged 4.13% on Tuesday, indicating strong volume and bullish momentum after a lengthy consolidation phase.
- Punjab Chemicals & Crop Protection Ltd: He recommends purchasing Punjab Chemicals at approximately ₹1,080, keeping a stop-loss at ₹1,040 and targeting ₹1,160. The stock shows signs of a breakout from its consolidation phase, supported by key exponential moving averages.
Ganesh Dongre’s Recommendations
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BEML Ltd: Dongre suggests buying BEML at around ₹3,215, with a stop-loss at ₹3,150 and a target of ₹3,350. The stock has formed a bullish engulfing pattern, indicating a potential reversal after a correction.
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Infosys Ltd: He also recommends Infosys, targeting a buy at ₹1,495 with a stop-loss of ₹1,465 and a target price of ₹1,535. The stock has formed a Morning Star pattern on the weekly chart, signaling a bullish reversal.
- Triveni Engineering & Industries Ltd: Dongre advises buying Triveni Engineering at ₹418, with a stop-loss at ₹408 and a target price of ₹435. The recent hammer candlestick formation suggests that selling pressure may be waning.
Shiju Koothupalakkal’s Stock Picks
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GlaxoSmithKline Pharmaceuticals Ltd (GLAXO): Koothupalakkal suggests buying GLAXO at around ₹2,902, targeting ₹3,070 with a stop-loss at ₹2,845. The stock shows strong support near the ₹2,800 mark, indicating an upward potential.
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Shipping Corporation of India Ltd: He recommends purchasing this stock at approximately ₹182.67, with a target of ₹194 and a stop-loss at ₹178. It has shown bullish candle formations, supporting a positive bias.
- Bharat Dynamics Ltd: Koothupalakkal suggests buying Bharat Dynamics at around ₹1,536, targeting ₹1,620 with a stop-loss at ₹1,500. The stock has broken out above a rising trend line, indicating strong upward potential.
As traders navigate through this cautious trading landscape, these recommendations may provide valuable opportunities for growth. Keep an eye on the evolving market dynamics to make informed investment decisions.
