On Tuesday, the stock market experienced a notable decline, driven by profit-taking that impacted key benchmark indices. The Nifty-50 Index closed at 24,578.35, reflecting a 1.39% drop, while the Bank Nifty fell by 0.8%, settling at 54,940.80. Key sectors such as Auto, IT, and FMCG faced considerable losses, while Pharma stocks displayed resilience, emerging as significant gainers. Interestingly, the broader market, including mid and small-cap stocks, managed to rise by as much as 0.8%.

Market Outlook and Trade Setup

Despite Tuesday’s downturn, analysts believe the short-term uptrend for the Nifty remains intact. Nagaraj Shetti, a Senior Technical Research Analyst at HDFC Securities, suggests that the Nifty could rebound from crucial support levels between 24,500 and 24,400 in the coming sessions. He notes that immediate resistance is identified at 24,800. Furthermore, Bajaj Broking anticipates the Bank Nifty could climb towards 56,400 shortly, with support levels set between 54,500 and 54,000.

Global Context and Economic Indicators

The market’s dip on Tuesday is seen as a corrective phase following Monday’s sharp gains. Investors are keenly observing global geopolitical developments and institutional flows, alongside upcoming macroeconomic data. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, highlights the significance of upcoming India inflation figures and U.S. CPI data as focal points for investors.

Stock Recommendations for Today

Expert Picks for Investment

Several market experts have provided stock recommendations for today’s trading session.

• Sumeet Bagadia from Choice Broking has identified two standout stocks:

  • Schaeffler India Ltd: Buy at ₹3,951.90 with a target of ₹4,230 and a stop-loss at ₹3,813.
  • Nippon Life India Asset Management Ltd: Buy at ₹704.90, targeting ₹755 with a stop-loss set at ₹680.

• Ganesh Dongre from Anand Rathi suggests:

  • Cholamandalam Investment and Finance Company Ltd: Targeting ₹1,640 with a buy-in at ₹1,580 and a stop-loss at ₹1,545.
  • Canara Bank: Buy at ₹105 with a target price of ₹112 and a stop-loss at ₹98.
  • NTPC Ltd: Recommended buy at ₹342, targeting ₹365 with a stop-loss at ₹330.
• Shiju Koothupalakkal from Prabhudas Lilladher proposes:
  • Jamna Auto Industries Ltd: Buy at ₹86.54, targeting ₹91 with a stop-loss at ₹85.
  • Kalyan Jewellers India Ltd: Buy at ₹554 with a target of ₹575 and a stop-loss at ₹542.
  • Garden Reach Shipbuilders & Engineers Ltd: Buy at ₹1,914, aiming for ₹2,040, with a stop-loss at ₹1,870.

Conclusion

The stock market’s fluctuation presents both challenges and opportunities for investors. With expert recommendations and a focus on critical support and resistance levels, traders are urged to stay informed and consider strategic investments to navigate this dynamic environment effectively. As always, thorough research and prudent risk management remain key components for successful trading.