The stock market took a dip on Wednesday, with the Nifty-50 index retreating by 0.77% to settle at 23,486.85. This decline erased some of the gains accumulated in recent trading sessions. Similarly, the Bank Nifty index also fell, closing at 51,209.00. Sectors such as Realty, IT, and Pharma faced notable losses, contributing to the overall correction of the broader indices, which experienced drops ranging from 0.7% to 1.2%.

Market Overview and Upcoming Trade Setup

As we look ahead to Thursday, immediate support for the Nifty-50 is identified around 23,400, coinciding with both the 100-day and 200-day exponential moving averages. A more robust support level exists at 23,141, while potential resistance is expected between 23,600 and 23,869, according to Devarsh Vakil, Head of Prime Research at HDFC Securities.

For the Bank Nifty, analysts suggest that a significant upward move may only occur after overcoming the 52,000 to 52,100 resistance threshold, as noted by Sameet Chavan, Head of Research, Technical and Derivative at Angel One.

Global Market Influences

Recent profit-taking activities can be attributed to the anticipation of upcoming U.S. tariff announcements, which have particularly impacted sectors heavily reliant on the U.S. market, such as Pharma and IT. Alongside this, oil prices have climbed due to U.S. sanctions on Iran and a projected decline in U.S. crude inventories. Despite these fluctuations, Vinod Nair, Head of Research at Geojit Investments Limited, remains optimistic about the market’s stability, citing inflows from FIIs and improving domestic fundamentals.

Top Stock Picks for Today

For investors looking for opportunities, industry experts have recommended several stocks. Here’s a roundup of some key picks:

• Radico Khaitan Ltd (RADICO): Buy at ₹2334, with a target price of ₹2480 and a stop-loss at ₹2250. The stock has demonstrated a recovery trend, forming a potential bottom reversal pattern.

• Nava Ltd: Suggested buy at ₹488.5, targeting ₹520 with a stop-loss set at ₹470. The stock has shown strong bullish momentum and robust buying interest.

Additional Stock Recommendations by Experts

Ganesh Dongre from Anand Rathi has highlighted the following stocks:

• Trent Ltd: Buy at ₹5320, targeting ₹5400 with a stop-loss at ₹5250. Recent analyses indicate a bullish reversal pattern, suggesting a potential price increase.

• Usha Martin Ltd: Recommended at ₹348 with a target of ₹365 and a stop-loss at ₹335. The stock is maintaining crucial support levels and shows signs of a bullish trend.

• Natco Pharma Ltd: Buy at ₹821, targeting ₹930 with a stop-loss at ₹804. The stock is currently in the oversold zone, indicating a potential for upward movement.

Shiju Koothupalakkal from Prabhudas Lilladher suggests:

• Bharat Dynamics Ltd: Recommended for purchase at ₹1326 with a target price of ₹1400 and a stop-loss at ₹1300. The stock shows a strong upward trend and positive momentum.

• Chennai Petroleum Corporation Ltd: Suggested buy at ₹630, targeting ₹670 with a stop-loss at ₹615. The stock has shown recovery and positive technical indicators.

• Varun Beverages Ltd: Buy at ₹527, aiming for a target of ₹560 with a stop-loss at ₹515. The stock is forming a higher bottom formation pattern, indicating potential for further gains.

Conclusion

Investors should stay alert to market dynamics, especially with global influences and sector-specific trends. The recommendations provided by experts present promising opportunities for engaging in the stock market as it navigates through its current fluctuations.