The Indian stock market has shown resilience and positive momentum, closing higher for the third consecutive day on Wednesday, buoyed by global market sentiments following President Trump’s tariff relief announcement. The Nifty 50 index surged by 108 points, reaching 23,437, while the BSE Sensex climbed 309 points, closing at 77,044. The Bank Nifty index also saw a significant uptick, gaining 738 points to finish at 53,117.
Market Performance Overview
Despite the positive trends, trading activity in the NSE cash market experienced a 10% drop in volumes compared to the previous day. Sector-wise, PSU Banks, Media, and Oil and Gas stocks emerged as the top performers, while the Auto, Pharma, and Healthcare sectors struggled, ending the day lower. The advance-decline ratio on the BSE was robust at 2.03, indicating a strong preference for advancing stocks over declining ones.
Outlook on Nifty 50
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, expressed optimism about the Indian stock market’s trajectory. She noted that the Nifty index has gained momentum, closing near 23,400 and is on track to reach the 24,000 mark soon. Parekh stated, “The Nifty 50 index has maintained its upward momentum, breaching the 23,400 level with a stronger bias. The market undertone is robust, with broader market participation supporting the rally. Immediate support is at the 50-EMA zone around 23,000, which is crucial to sustain.”
Bank Nifty’s Performance
The Bank Nifty index demonstrated impressive strength during the trading session, decisively moving above the 53,000 threshold. Parekh highlighted that it has outperformed the Nifty 50 index, with several major banking stocks showing promising potential for further gains. She pointed out that PSU Banks are positioned favorably, supported by improved indicators and significant volume participation, suggesting a potential rise in the near future. The index is projected to retest its previous peak of 54,500, with support firmly held near 51,000.
Key Support and Resistance Levels
For traders keeping an eye on the Nifty, Parekh identified critical support at 23,300 and resistance at 23,700. Meanwhile, the Bank Nifty is expected to trade within a range of 52,700 to 54,000.
Recommended Stocks for Investors
Vaishali Parekh has identified several stocks for investors to consider today:
-
Bank of Maharashtra
- Buy at ₹47.40
- Target: ₹52
- Stop Loss: ₹45
-
Hindustan Zinc
- Buy at ₹439
- Target: ₹465
- Stop Loss: ₹425
- Syngene International
- Buy at ₹735
- Target: ₹760
- Stop Loss: ₹720
In summary, the Indian stock market is on a positive trajectory, with key indices showing resilience. Investors are encouraged to monitor the recommended stocks and market movements closely to make informed trading decisions.
